InnSuites Hospitality Trust Battling Loss

PHOENIX-The sale of a Flagstaff, AZ, resort and a continuing sluggish economy contributed to a 10.2% decrease in revenues for locally based InnSuites Hospitality Trust in the first six months of this year.

The company has reported a net loss of $857,000 for the six months ending July 31 versus the $112,000 loss for the same period a year ago. Total revenue in the first six months was $13.4 million, compared to $14.9 million in 2002.

Subsequent to the end of the second quarter, the InnSuites sold its Flagstaff property to an affiliate of James Wirth for the appraised value of nearly $2.8 million, which resulted in a gain of $377,000. The trust also entered into an agreement to sell a Buena Park, CA property for $6.5 million, which is expected to result in a net cash flow of about $3.2 million.