Phoenix, AZ, Aug. 01, 2018 (GLOBE NEWSWIRE) -- Innsuites Hospitality Trust (NYSE American: IHT) has entered into an agreement to sell its Yuma Hospitality Property for $16,250,000 resulting in a significant gain. Yuma Hospitality Properties LLLP (“Yuma”), a subsidiary of the IHT, entered into a Purchase and Sale Agreement (the “PSA”) to sell its InnSuites Yuma Hotel and Suites Best Western Hotel property together with certain furniture, fixtures, equipment, operating supplies and other ancillary items pertaining to the daily operations with an estimated net book value of approximately $4.75 million. Palm Springs Inn, LLC or Assignee (“Buyer”) an unrelated third party has agreed to purchase subject to IHT Board of Trustees approval, Yuma Hospitality Properties LLLP partner approval, and the Buyer’s property/financial review.
Pursuant to the PSA, the buyer has made a $200,000 earnest money deposit into escrow with $25,000 to be nonrefundable after 30 days with the remainder to be nonrefundable after 45 days of opening escrow. The buyer shall have 45 days from the effective date to inspect and complete all physical and financial due diligence related to its acquisition of the property. Close of escrow is expected to take place in the next 60 to 90 days.
Forward-Looking Statements
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. Forward-looking statements are not guarantees of future performance due to numerous risks and uncertainties such as local, national or international economic and business conditions, including, without limitation, conditions that may, or may continue to, affect public securities markets generally, the hospitality industry or the markets in which we operate or will operate; fluctuations in hotel occupancy rates; changes in room rental rates that may be charged by InnSuites Hotels in response to market rental rate changes or otherwise; seasonality of our business; our ability to sell any of our Hotels at market value, listed sale price or at all; interest rate fluctuations; changes in, or reinterpretations of governmental regulations; competition; availability of credit or other financing; our ability to meet, refinance or extend present and future debt service obligations; insufficient resources to pursue our current strategy; concentration of our investments in the InnSuites Hotels® brand; loss of membership contracts; the financial condition of franchises, brand membership companies and travel related companies; our ability to develop and maintain positive relations with “Best Western Plus” or “Best Western” and potential future franchises or brands; our ability to carry out our strategy, including our strategy regarding IBC Hotels; the Trust’s ability to remain listed on the NYSE American; effectiveness of the Trust’s software program; the need to periodically repair and renovate our Hotels at a cost at or in excess of our standard 4% reserve; our ability to cost effectively integrate any acquisitions with the Trust in a timely manner; increases in the cost of labor, energy, healthcare, insurance and other operating expenses as a result of changed or increased regulation or otherwise; terrorist attacks or other acts of war; outbreaks of communicable diseases attributed to our hotels or impacting the hotel industry in general; natural disasters, including adverse climate changes in the areas where we have or serve hotels; airline strikes; transportation and fuel price increases; adequacy of insurance coverage; data breaches or cybersecurity attacks; and other factors. Such uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained. 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.
CONTACT: Contact: FOR FURTHER INFORMATION: Marc Berg, Executive Vice President 602-944-1500 email: mberg@innsuites.com