PHOENIX, AZ, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Innsuites Hospitality Trust (NYSE American IHT). Effective October 24, 2018, Innsuites Hospitality Trust (the “Trust”) completed the sale of its InnSuites Yuma Hotel and Suites Best Western (the “Yuma Hotel”) for $16.050 million. The Trust will recognize a significant profit after transactional costs, including the paying off total debt of approximately $5.6 million. The Trust’s estimated basis in the Yuma Hotel is approximately $4.6 million.
As previously reported on August 1, 2018, the Trust sold its IBC Technology division (“IBC”) for net expected proceeds of approximately $2.75 million. The Trust held IBC at an estimated net book value of approximately $400,000, and the sale of IBC is expected to result in another significant profit to the Trust.
Management believes that for an extended period of time the average market price of the Trust’s shares have been significantly below the true underlying value of cash, receivables, net real estate equity at market value, other net assets and goodwill. The Board of Trustees intends to meet soon to consider future strategies for the Trust.
With the exception of historical information, the matters discussed in this news release may include “forward-looking statements” within the meaning of the federal securities laws. All statements regarding the Trust’s review and exploration of potential strategic, operational and structural alternatives and expected associated costs and benefits are forward-looking. Actual developments and business decisions may differ materially from those expressed or implied by such forward-looking statements. Important factors, among others, that could cause the Trust’s actual results and future actions to differ materially from those described in forward-looking statements include the uncertain outcome, impact, effects and results of the Trust’s review of strategic, operational and structural alternatives, and the risks discussed in the Trust’s SEC filings. The Trust expressly disclaims any obligation to update any forward-looking statement contained in this news release to reflect events or circumstances that may arise after the date hereof, all of which are expressly qualified by the foregoing, other than as required by applicable law.
FOR FURTHER INFORMATION:
Marc Berg, Executive Vice President