IHT Reports Third Quarter Results

InnSuites Hospitality Trust Highlights:
* Trust revenue from continuing operations totaled $13.4 million for the
nine months ended October 31, 2003, a decrease of 8.8% from the prior year
period of $14.7 million. * Net loss from continuing operations was $1.3
million for the nine months ended October 31, 2003, which was consistent
with the prior year period. * Net loss from continuing operations was
$649,000 for the three months ended October 31, 2003 compared to a loss of
$883,000 in the prior year period. * Recurring FFO for the first nine
months was $(380,000) compared to $76,000 in the prior year period.

InnSuites Hospitality Trust reported revenue from continuing operations of
$13.4 million for the nine months ended October 31, 2003, a decrease of
8.8% from $14.7 million for the prior year period. This decrease reflects
the sluggish economy during the first nine months of fiscal year 2004.

The Trust reported revenue from continuing operations of $4.0 million for
the three months ended October 31, 2003, a decrease of 6.1% from $4.2
million for the prior year period.

The Trust`s total net loss attributable to Shares of Beneficial Interest
for the nine months ended October 31, 2003 was $1.6 million, or $(0.80)
per diluted share, compared to a loss of $1.1 million, or $(0.52) per
diluted share, during the first nine months of the prior fiscal year.
During the nine months ended October 31, 2003, the Trust recorded a loss
on impairment relating to the Buena Park, California property of $329,000,
of which $168,000 was attributable to Shares of Beneficial Interest.

The Trust`s net loss from continuing operations for the nine months ended
October 31, 2003 was $1.3 million, or $(0.62) per diluted share, which was
consistent with the prior year period loss from continuing operations of
$1.3 million, or $(0.62) per diluted share.

ADVERTISEMENT

The Trust`s total net loss attributable to Shares of Beneficial Interest
for the three months ended October 31, 2003 was $759,000, or $(0.37) per
diluted share, compared to a loss of $978,000, or $(0.49) per diluted
share, during the same three month period in the prior fiscal year.

The Trust`s net loss from continuing operations for the three months ended
October 31, 2003 was $649,000, or $(0.31) per diluted share, which was an
improvement of $234,000 over the prior year period loss from continuing
operations of $883,000, or $(0.44) per diluted share. This improvement
reflects the return of hotel revenues to near the prior year levels in
addition to a decrease in total expenses due to the effects of cost
cutting programs.

The Trust had Recurring Funds From Operations (FFO) of $(380,000) for the
nine months ended October 31, 2003. Recurring FFO decreased $456,000 from
$76,000 in the prior year period. The decrease was due to decreased
revenues caused by the challenging economic environment during the first
nine months of fiscal year 2004.

FFO is a widely used financial measure of a REIT`s performance that
excludes most non-cash charges, including depreciation of real estate and
gains and losses on disposal of assets. FFO is an alternative non-GAAP
financial measure of a company`s cash flow and its ability to pay
dividends.
Positioned for the Future
-
The Trust has been impacted by the general economic slowdown and,
specifically, the difficulties in the travel and hospitality industries.
The Trust has taken steps, including tight cost controls and the
disposition of underperforming assets, which it believes has mitigated the
impact of these factors and has positioned the Trust to benefit from a
recovery in the travel industry. Although the Trust expects a modest
pickup in the economy over the balance of the current year and in the
coming year, it continues to take aggressive steps to cut costs and
increase sales.
Your Suite Choice(R)- Value Concept
-
InnSuites Hospitality Trust is a mid-market studio and two-room suite
hospitality real estate investment trust with 8 moderate service and full
service hotels containing 1,243 hotel suites located in Arizona, New
Mexico and Southern California. For reservations, call 1-888-INNSUITES, or
visit http://www.innsuites.com/ . For investor information, visit
http://www.innsuitestrust.com/ .

Certain matters within this press release may be discussed using forward-
looking language as specified in the 1995 Private Securities Litigation
Reform Act and InnSuites Hospitality Trust intends that such
forward-looking statements be subject to the safe-harbor created thereby.
Such forward- looking statements include, but are not limited to: (i)
expectations of growth in the financial and operating results of the
Trust, (ii) expectations of reductions in costs incurred by the Trust,
(iii) expectations to refinance or dispose of individual hotels, and (iv)
expectations that the travel and hospitality industries will rebound in
the near future. InnSuites Hospitality Trust cautions that these
statements may involve known and unknown risks, uncertainties and other
factors that may cause the actual results or performance to differ from
those projected in the forward-looking statements contained herein. Such
risks include, but are not limited to: a) fluctuations in hotel occupancy
rates, b) changes in room rental rates which may be charged by InnSuites
Hotels in response to market rental rate changes or otherwise, c) interest
rate fluctuations, d) changes in federal income tax laws and regulations,
e) competition, f) any changes in the Trust`s financial condition or
operating results due to acquisitions or dispositions of hotel properties,
g) real estate and hospitality market conditions, h) hospitality industry
factors, i) terrorist attacks or other acts of war, j) communicable
diseases such as SARS, and k) local or national economic and business
conditions, including, without limitation, conditions which may affect
public securities markets generally, the hospitality industry or the
markets in which the Trust operates or will operate. From time to time,
these and other risks are discussed in the Trust`s Annual Report on Form
10-K and other filings with the Securities and Exchange Commission.
——-