InnSuites Hospitality Trust (IHT) reported its financial performance for the six months ended July 31, 2024, revealing a total revenue of $4.1 million, a 5% increase from $3.9 million in the same period of 2023. Room revenue also saw a rise, reaching $4.0 million compared to $3.9 million in the prior year. However, total operating expenses increased significantly to $4.2 million, up from $3.9 million, leading to an operating loss of $115,510, a stark contrast to the operating profit of $30,441 reported in 2023.

The consolidated net loss before employee retention credit for the six months was $(331,387), worsening from $(169,757) in the previous year. The net loss attributable to controlling interests was $(527,416), compared to a net income of $245,661 in 2023. This resulted in a net loss per share of $(0.06), down from a profit of $0.03 in the same period last year.

For the three months ended July 31, 2024, total revenue was $1.8 million, a 7% increase from $1.7 million in 2023. However, the operating loss for this quarter increased to $(285,956) from $(146,037) in the prior year, and the consolidated net loss was $(410,002), compared to a net income of $76,182 in 2023.

The Trust's total assets decreased to $15.1 million as of July 31, 2024, from $15.7 million at the end of January 2024. Total current liabilities rose to $2.0 million, up from $1.8 million, while total liabilities increased slightly to $13.1 million. Trust shareholders’ equity fell to $5.5 million from $6.2 million in January 2024.

Strategically, IHT continues to manage two hotels in Arizona and New Mexico, with plans to sell these properties within the next 12 to 36 months, believing they are undervalued compared to their fair market value. The Trust has also invested $1 million in UniGen Power, Inc., acquiring convertible debentures and common stock, which may lead to significant equity ownership in the future.

The Trust's management is actively considering options to enhance liquidity and operational efficiency, including potential sales of hotel properties and other investments. Despite the challenges faced in the current fiscal period, management remains optimistic about future growth driven by the travel industry and improved hotel performance.