Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Apr. 27, 2015 | Jul. 31, 2014 | |
Entity Registrant Name | InnSuites Hospitality Trust | ||
Entity Central Index Key | 82473 | ||
Current Fiscal Year End Date | -30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 8,273,810 | ||
Entity Public Float | $4,439,665 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Current Assets: | ||
Cash and Cash Equivalents | $507,686 | $395,903 |
Restricted Cash | 114,337 | |
Accounts Receivable, including $79,366 and $55,873 from related parties and net of Allowance for Doubtful Accounts of $39,045 and $23,593, as of January 31, 2015 and January 31, 2014, respectively | 472,350 | 644,566 |
Advances to Affiliates - Related Party | 1,236 | |
Prepaid Expenses and Other Current Assets | 151,999 | 384,059 |
Total Current Assets | 1,133,271 | 1,538,865 |
Hotel Properties, net | 25,818,446 | 23,672,715 |
Property, Plant and Equipment, net | 76,092 | 89,348 |
Deferred Finance Costs and Other Assets | 107,575 | |
TOTAL ASSETS | 27,027,809 | 25,408,503 |
Current Liabilities: | ||
Accounts Payable and Accrued Expenses | 2,646,840 | 2,221,638 |
Current Portion of Mortgage Notes Payable, net of Discount of $8,012 and $0 as of January 31, 2015 and 2014 | 5,325,583 | 11,753,088 |
Current Portion of Notes Payable to Banks, net of Discount of $63,474 and $24,453 as of January 31, 2015 and 2014, respectively | 1,226,626 | 1,018,925 |
Line of Credit - Related Party | 541,710 | 331,390 |
Current Portion of Other Notes Payable | 469,842 | 81,461 |
Total Current Liabilities | 10,210,601 | 15,406,502 |
Mortgage Notes Payable, net of Discount of $66,915 and $0 as of January 31, 2015 and 2014 | 13,796,153 | 6,993,483 |
Other Notes Payable | 55,828 | 106,106 |
TOTAL LIABILITIES | 24,062,582 | 22,506,091 |
COMMITMENTS AND CONTINGENCIES (SEE NOTE 20) | ||
SHAREHOLDERS' EQUITY | ||
Shares of Beneficial Interest, without par value, unlimited authorization; 16,845,846 and 16,822,746 shares issued and 8,265,102 and 8,341,899 shares outstanding at January 31, 2015 and January 31, 2014, respectively | 13,812,470 | 14,024,668 |
Treasury Stock, 8,580,744 and 8,480,847 shares held at January 31, 2015 and January 31, 2014, respectively | -12,193,491 | -11,973,459 |
TOTAL TRUST SHAREHOLDERS' EQUITY | 1,618,979 | 2,051,209 |
NON-CONTROLLING INTEREST | 1,346,248 | 851,203 |
TOTAL EQUITY | 2,965,227 | 2,902,412 |
TOTAL LIABILITIES AND EQUITY | $27,027,809 | $25,408,503 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Accounts Receivable from Related Parties | $79,366 | $55,873 |
Allowance for Doubtful Accounts | 39,045 | 23,593 |
Shares of Beneficial Interest, par value (in dollars per share) | $0 | $0 |
Shares of Beneficial Interest, shares issued (in shares) | 16,845,846 | 16,822,746 |
Shares of Beneficial Interest, shares outstanding (in shares) | 8,265,102 | 8,341,899 |
Treasury Stock, shares held (in shares) | 8,580,744 | 8,480,847 |
Notes Payable to Banks [Member] | ||
Note Payable, Discount | 63,474 | 24,453 |
Current Portion of the Unamortized Discount[Member] | Mortgages [Member] | ||
Note Payable, Discount | 8,012 | 0 |
Non-current Portion of the Unamortized Discount [Member] | Mortgages [Member] | ||
Note Payable, Discount | $66,915 | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
REVENUE | ||
Room | $13,186,396 | $13,442,254 |
Food and Beverage | 954,432 | 991,867 |
Management and Trademark Fees | 278,210 | 194,605 |
Other | 253,834 | 255,916 |
TOTAL REVENUE | 14,672,872 | 14,884,642 |
OPERATING EXPENSES | ||
Room | 3,957,611 | 3,667,492 |
Food and Beverage | 903,848 | 927,887 |
Telecommunications | 30,420 | 28,243 |
General and Administrative | 3,450,220 | 3,139,064 |
Sales and Marketing | 1,316,857 | 1,111,912 |
Repairs and Maintenance | 1,243,273 | 1,225,997 |
Hospitality | 870,065 | 837,371 |
Utilities | 1,314,514 | 1,202,371 |
Hotel Property Depreciation | 1,782,421 | 1,783,595 |
Real Estate and Personal Property Taxes, Insurance and Ground Rent | 943,914 | 938,345 |
Other | 31,104 | 9,477 |
TOTAL OPERATING EXPENSES | 15,844,247 | 14,871,754 |
OPERATING (LOSS) INCOME | -1,171,375 | 12,888 |
Interest Income | 197 | 5,610 |
Interest Income on Advances to Affiliates - Related Party | 8,971 | |
TOTAL OTHER INCOME | 9,168 | 5,610 |
Interest on Mortgage Notes Payable | 705,198 | 757,316 |
Interest on Notes Payable to Banks | 101,924 | 26,408 |
Interest on Other Notes Payable | 29,486 | 28,496 |
Interest on Line of Credit - Related Party | 43,461 | 10,361 |
TOTAL INTEREST EXPENSE | 880,069 | 822,581 |
CONSOLIDATED NET LOSS BEFORE INCOME TAX PROVISION | -2,042,276 | -804,083 |
Effective rate | -198,648 | -37,148 |
CONSOLIDATED NET LOSS | -2,240,924 | -841,231 |
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | -137,287 | 180,592 |
NET LOSS ATTRIBUTABLE TO CONTROLLING INTERESTS | ($2,103,637) | ($1,021,823) |
NET LOSS PER SHARE – BASIC AND DILUTED (in dollars per share) | ($0.25) | ($0.12) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED (in shares) | 8,313,093 | 8,368,416 |
CASH DIVIDENDS PER SHARE (in dollars per share) | $0.01 | $0.01 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Noncontrolling Interest [Member] | Parent [Member] | Treasury Stock [Member] |
Balance at Jan. 31, 2013 | $3,226,285 | $14,940,048 | $164,123 | $3,062,162 | ($11,877,886) |
Balance (in shares) at Jan. 31, 2013 | 8,375,207 | 8,429,539 | |||
Consolidated Net Loss | -841,231 | -1,021,823 | 180,592 | -1,021,823 | |
Dividends | -83,449 | -83,449 | -83,449 | ||
Purchase of Treasury Stock (in shares) | -51,308 | 51,308 | |||
Purchase of Treasury Stock | -95,573 | -95,573 | -95,573 | ||
Shares of Beneficial Interest Issued for Services Rendered (in shares) | 18,000 | ||||
Shares of Beneficial Interest Issued for Services Rendered (Non-Cash) | 30,960 | 30,960 | 30,960 | ||
Sales of Ownership Interests in Subsidiary, net | -52,880 | -52,880 | |||
Sales of Ownership Interests in Subsidiary, net | 1,116,936 | 1,169,816 | |||
Distribution to Non-Controlling Interests | 462,778 | 462,778 | |||
Reallocation of Non-Controlling Interests and Other | 11,262 | 211,812 | -200,550 | 211,812 | |
Distribution to Non-Controlling Interests | -462,778 | -462,778 | |||
Balance at Jan. 31, 2014 | 2,902,412 | 14,024,668 | 851,203 | 2,051,209 | -11,973,459 |
Balance (in shares) at Jan. 31, 2014 | 8,341,899 | 8,480,847 | |||
Consolidated Net Loss | -2,240,924 | -2,103,637 | -137,287 | -2,103,637 | |
Dividends | -82,665 | -82,665 | -82,665 | ||
Purchase of Treasury Stock (in shares) | -99,897 | 99,897 | |||
Purchase of Treasury Stock | -220,032 | -220,032 | -220,032 | ||
Shares of Beneficial Interest Issued for Services Rendered (in shares) | 23,100 | ||||
Shares of Beneficial Interest Issued for Services Rendered (Non-Cash) | 36,666 | 36,666 | 36,666 | ||
Sales of Ownership Interests in Subsidiary, net | 3,338,945 | -143,300 | 3,482,245 | -143,300 | |
Distribution to Non-Controlling Interests | 769,175 | 769,175 | |||
Reallocation of Non-Controlling Interests and Other | 2,080,738 | -2,080,738 | 2,080,738 | ||
Distribution to Non-Controlling Interests | -769,175 | -769,175 | |||
Balance at Jan. 31, 2015 | $2,965,227 | $13,812,470 | $1,346,248 | $1,618,979 | ($12,193,491) |
Balance (in shares) at Jan. 31, 2015 | 8,265,102 | 8,580,744 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Consolidated Net Loss | ($2,240,924) | ($841,231) |
Adjustments to Reconcile Consolidated Net Loss to Net Cash Provided by Operating Activities: | ||
Stock-Based Compensation | 36,666 | 30,960 |
Recovery of (Provision for) Uncollectible Receivables | 15,452 | -10,822 |
Hotel Property Depreciation | 1,782,421 | 1,783,595 |
Loss on Disposal of Assets | 15,010 | |
Amortization of Debt Discounts and Deferred Financing Fees | 171,377 | 59,400 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | 156,764 | -95,558 |
Prepaid Expenses and Other Assets | 252,965 | -144,751 |
Accounts Payable and Accrued Expenses | 425,202 | -76,859 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 599,923 | 719,744 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Improvements and Additions to Hotel Properties | -1,414,896 | -761,433 |
Change in Restricted Cash | 114,337 | -100,554 |
Lendings on Advances to Affiliates - Related Party | -736,184 | |
Collections on Advances to Affiliates - Related Party | 734,948 | |
NET CASH USED IN INVESTING ACTIVITIES | -1,301,795 | -861,987 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal Payments on Mortgage Notes Payable | -2,153,629 | -1,208,352 |
Payments on Notes Payable to Banks | -4,402,112 | -1,805,313 |
Borrowings on Notes Payable to Banks | 4,553,900 | 2,374,238 |
Payments on Line of Credit - Related Party | -4,244,051 | -2,673,866 |
Borrowings on Line of Credit - Related Party | 4,454,371 | 3,035,256 |
Payments on Other Notes Payable | -88,897 | -194,049 |
Borrowings on Other Notes Payable | 427,000 | |
Proceeds from Sale of Non-Controlling Ownership Interest in Subsidiaries | 3,338,945 | 1,116,936 |
Distributions to Non-Controlling Interest Holders | -769,175 | -462,778 |
Payments of Dividends | -82,665 | -83,449 |
Repurchase of Treasury Stock | -220,032 | -54,430 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 813,655 | 44,193 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 111,783 | -98,050 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 395,903 | 493,953 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $507,686 | $395,903 |
Note_1_Nature_of_Operations_an
Note 1 - Nature of Operations and Basis of Presentation | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION |
As of January 31, 2015, InnSuites Hospitality Trust (the “Trust”, “we” or “our”) owns interests directly in and through a partnership interest, five hotels with an aggregate of 843 suites in Arizona, southern California and New Mexico (the “Hotels”). The Hotels operate under the trade name “InnSuites Hotels.” | |
Full service hotels often contain upscale full-service facilities with a large volume of full service accommodations, on-site full service restaurant(s), and a variety of on-site amenities such as swimming pools, a health club, children’s activities, ballrooms and on-site conference facilities. Moderate or limited service hotels are small to medium-sized hotel establishments that offer a limited amount of on-site amenities. Most moderate or limited service establishments may still offer full service accommodations but lack leisure amenities such as an on-site restaurant or a swimming pool. We consider one of our Tucson, Arizona hotels and our hotel located in Albuquerque, New Mexico to be moderate or limited service establishments. All of our other properties are full service hotels. | |
The Trust is the sole general partner of RRF Limited Partnership, a Delaware limited partnership (the “Partnership”), and owned a 72.11% and 72.04% interest in the Partnership as of January 31, 2015 and 2014, respectively. The Trust’s weighted average ownership for the years ended January 31, 2015 and 2014 was 72.09% and 72.04%, respectively. As of January 31, 2015, the Partnership owned 100% of one InnSuites® hotel located in Tucson, Arizona, owned a 51.01% interest in another InnSuites® hotel located in Tucson, Arizona, and a 51.71% interest in an InnSuites® hotel located in Ontario, California. The Trust owns a direct 73.61% interest in a Yuma, Arizona hotel property, and a direct 50.82% interest in an InnSuites® hotel located in Albuquerque, New Mexico. | |
Under certain management agreements, InnSuites Hotels, our subsidiary, manages the Hotels’ daily operations. The Trust also provides the use of the “InnSuites” trademark to the Hotels through wholly-owned InnSuites Hotels. All such expenses and reimbursements between the Trust, InnSuites Hotels and the Partnership have been eliminated in consolidation. | |
InnDependent Boutique Collection (IBC Hotels) or IBC Developments, a wholly owned subsidiary of InnSuites Hospitality Trust, has a network of approximately 6,300 unrelated hotel properties and provides revenue generating services and cost savings solutions to independent boutique hotels. During the fiscal year ended January 31, 2014 IBC Hotels formed a marketing alliance with the Independent Lodging Industry Association (ILIA). | |
PARTNERSHIP AGREEMENT | |
The Partnership Agreement of the Partnership provides for the issuance of two classes of Limited Partnership units, Class A and Class B. Class A and Class B Partnership units are identical in all respects, except that each Class A Partnership unit is convertible into one newly-issued Share of Beneficial Interest of the Trust at any time at the option of the particular limited partner. The Class B Partnership units may only become convertible, each into one newly-issued Share of Beneficial Interest of the Trust, with the approval of the Board of Trustees, in its sole discretion. On January 31, 2015 and 2014, 276,131 and 286,034 Class A Partnership units were issued and outstanding, representing 2.09% and 2.17% of the total Partnership units, respectively. Additionally, as of both January 31, 2015 and 2014, 3,407,938 Class B Partnership units were outstanding to James Wirth, the Trust’s Chairman and Chief Executive Officer, and Mr. Wirth’s affiliates. If all of the Class A and B Partnership units were converted on January 31, 2015, the limited partners in the Partnership would receive 3,684,069 Shares of Beneficial Interest of the Trust. As of January 31, 2015 and 2014, the Trust owns 9,527,448 and 9,517,545 general partner units in the Partnership, representing 72.11% and 72.04% of the total Partnership units, respectively. | |
LIQUIDITY | |
Our principal source of cash to meet our cash requirements, including distributions to our shareholders, is our share of the Partnership’s cash flow, quarterly distributions from the Albuquerque, New Mexico and Yuma, Arizona properties and more recently, sales of non-controlling interests in certain of our Hotels. The Partnership’s principal source of cash flow is hotel operations for the one hotel property it owns and quarterly distributions from the Tucson, Arizona and Ontario, California properties. Our liquidity, including our ability to make distributions to our shareholders, will depend upon our ability and the Partnership’s ability to generate sufficient cash flow from hotel operations and to service our debt. | |
Hotel operations are significantly affected by occupancy and room rates at the Hotels. As of January 31, 2015, the Trust had $125,000 drawn on our $600,000 line of credit. Our credit line matures on June 23, 2015 and we are currently in discussions with the bank and anticipate a renewal of at least an additional year on this line of credit. As of April 24, 2015, the outstanding balance drawn on the line of credit was $0. | |
As of January 31, 2015, the Trust had a related party Demand/Revolving Line of Credit/Promissory Note with an amount payable of $541,710. The Demand/Revolving Line of Credit/Promissory Note has interest at 7.0% per annum and is interest only quarterly. The Demand/Revolving Line of Credit/Promissory Note has a maximum borrowing capacity to $1,000,000, which is available to December 31, 2017. As of April 24, 2015, the outstanding net balance payable on the Demand/Revolving Line of Credit/Promissory Note was $807,000. | |
With the expected continued availability of the $600,000 bank line of credit, which management expects to timely renew, the availability of the $1,000,000 related party Demand/Revolving Line of Credit/Promissory Note, and the refinance or extension of one of our mortgage note payables that was due on April 28, 2015, which management expects to occur, management believes that it will have enough cash on hand and financing available to meet all of our obligations as they become due for at least the next year. In addition, our management is analyzing other strategic options available to us, including the refinancing of another property or raising additional funds through additional non-controlling interest sales; however, such transactions may not be available on terms that are favorable to the Trust. | |
There can be no assurance that we will be successful in obtaining extensions, refinancing debt or raising additional or replacement funds, or that these funds may be available on terms that are favorable to us. If we are unable to raise additional or replacement funds, we may be required to sell certain of our assets to meet our liquidity needs, which may not be on terms that are favorable. | |
BASIS OF PRESENTATION | |
As sole general partner of the Partnership, the Trust exercises unilateral control over the Partnership, and the Trust owns all of the issued and outstanding classes of shares of InnSuites Hotels. Therefore, the financial statements of the Partnership and InnSuites Hotels are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. | |
SEASONALITY OF THE HOTEL BUSINESS | |
The Hotels’ operations historically have been somewhat seasonal. The three southern Arizona hotels experience their highest occupancy in the first fiscal quarter and, to a lesser extent, the fourth fiscal quarter. The second fiscal quarter tends to be the lowest occupancy period at those three southern Arizona hotels. This seasonality pattern can be expected to cause fluctuations in the Trust’s quarterly revenues. The two hotels located in California and New Mexico historically experience their most profitable periods during the second and third fiscal quarters (the summer season), providing some balance to the general seasonality of the Trust’s hotel business. | |
The seasonal nature of the Trust’s business increases its vulnerability to risks such as labor force shortages and cash flow issues. Further, if an adverse event such as an actual or threatened terrorist attack, international conflict, data breach, regional economic downturn or poor weather conditions should occur during the first or fourth fiscal quarters, the adverse impact to the Trust’s revenues could likely be greater as a result of its southern Arizona seasonal business. | |
It is too early to determine what the seasonality of the IBC business segment is. The Company doesn’t anticipate much seasonality do to the diversification of the location of the IBC Hotels. | |
RECENTLY ISSUED ACCOUNTING GUIDANCE | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” to Accounting Standards Codification (“ASC”) Topic 205, “Presentation of Financial Statements” and ASC Topic 360, “Property Plant and Equipment”. Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. In addition, ASU 2014-08 expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. ASU 2014-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2014; early adoption is permitted. In 2014, the Company adopted ASU 2014-08. | |
In August 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). Under generally accepted accounting principles (GAAP), continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the Liquidation Basis of Accounting. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in ASU 2014-15 require additional disclosure of information about the relevant conditions and events. The amendments in ASU 2014-15 are effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Trust is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements, however does not expect there to be a material impact at this time. | |
In June 2014, FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation—Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Trust is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements, however does not expect there to be a material impact at this time. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, ASU 2014-09 provides for the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification Topic No. 605, “Revenue Recognition,” most industry-specific guidance throughout the industry topics of the Accounting Standards Codification, and some cost guidance related to construction-type and production-type contracts. ASU 2014-09 is effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Trust is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. | |
In February, 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This will improve certain areas of consolidation guidance for reporting organizations that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. ASU 2015-02 simplified and improves GAAP by: eliminating the presumption that a general partner should consolidate a limited partnership, eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model), clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. ASU 2015-02 will be effective for periods beginning after December 15, 2015. The Trust is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. | |
In April, 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The ASU specifies that “issue costs shall be reported in the balance sheet as a direct deduction from the face amount of the note” and that “amortization of debt issue costs shall also be reported as interest expense.” According to the ASU’s Basis for Conclusions, debt issuance costs incurred before the associated funding is received (i.e., the debt liability) should be reported on the balance sheet as deferred charges until that debt liability amount is recorded. For public business entities, the guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For entities other than public business entities, the guidance is effective for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). | |
The Trust is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
USE OF ESTIMATES | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
The Trust’s operations are affected by numerous factors, including the economy, competition in the hotel industry and the effect of the economy on the travel and hospitality industries. The Trust cannot predict if any of the above items will have a significant impact in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Trust’s operations and cash flows. Significant estimates and assumptions made by management include, but are not limited to, the estimated useful lives of long-lived assets and estimates of future cash flows used to test a long-lived asset for recoverability and the fair values of the long-lived assets. | |||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT AND HOTEL PROPERTIES | |||||||||||||||||
Furniture, fixtures, building improvements and hotel properties are stated at cost and are depreciated using the straight-line method over estimated lives ranging up to 40 years for buildings and 3 to 10 years for furniture and equipment. | |||||||||||||||||
Management applies guidance issued by the Financial Accounting Standards Board ("FASB"), codified in Accounting Standards Codification Topic 360-10-35 (“ASC 360-10-35”), to determine when it is required to test an asset for recoverability of its carrying value and whether an impairment exists. Under ASC 360-10-35, the Trust is required to test a long-lived asset for impairment when there is an indicator of impairment. Impairment indicators may include, but are not limited to, a drop in the performance of a long-lived asset, a decline in the hospitality industry or a decline in the economy. If an indicator of potential impairment is present, then an assessment is performed of whether the carrying amount of an asset exceeds its estimated undiscounted future cash flows over its estimated remaining life. | |||||||||||||||||
If the estimated undiscounted future cash flows over the asset’s estimated remaining life are greater than the asset’s carrying value, no impairment is recognized; however, if the carrying value of the asset exceeds the estimated undiscounted future cash flows, then the Trust would recognize an impairment expense to the extent the asset’s carrying value exceeds its fair value, if any. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. Long-lived assets evaluated for impairment are analyzed on a property-specific basis independent of the cash flows of other groups of assets. Evaluation of future cash flows is based on historical experience and other factors, including certain economic conditions and committed future bookings. Management has determined that no impairment of long-lived assets exists during the Trust’s fiscal years ending January 31, 2015 and 2014. | |||||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||
The Trust considers all highly liquid short-term investments with maturities of three months or less at the time of purchase to be cash equivalents. The Trust believes it places its cash and cash equivalents only with high credit quality financial institutions, although these balances may periodically exceed federally insured limits. | |||||||||||||||||
RESTRICTED CASH | |||||||||||||||||
Restricted cash consists of amounts held in reserve by lenders to fund capital improvements to the properties. | |||||||||||||||||
REVENUE RECOGNITION | |||||||||||||||||
Staff Accounting Bulletin (“SAB”) No. 104, “Revenue Recognition” summarizes the SEC’s views in applying generally accepted accounting principles to revenue recognition in financial statements. SAB No. 104 establishes the SEC’s view that it is not appropriate to recognize revenue until all of the following criteria are met: persuasive evidence that an arrangement exists; delivery has occurred or services have been rendered; the seller’s price to the buyer is fixed or determinable; and collectability is reasonably assured. Further, SAB No. 104 requires that both title and the risks and rewards of ownership be transferred to the buyer before revenue can be recognized. We believe that our revenue recognition policies as described below are in compliance with SAB No. 104. | |||||||||||||||||
Revenues are primarily derived from the following sources and are recognized as services are rendered and when collectability is reasonably assured. Amounts received in advance of revenue recognition are considered deferred liabilities. | |||||||||||||||||
Revenues primarily consist of room rentals, food and beverage sales, management and trademark fees and other miscellaneous revenues from our properties. Revenues are recorded when rooms are occupied and when food and beverage sales are delivered. Management and trademark fees from hotels include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels and the three hotels owned by affiliates of Mr. Wirth. IBC Development revenues are recognized after services are rendered by the IBC member hotel. | |||||||||||||||||
We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. | |||||||||||||||||
Based on our policy, we believe that persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and the collectability of our revenues are reasonably assured. | |||||||||||||||||
ACCOUNTS RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | |||||||||||||||||
Accounts receivable are carried at original amounts billed less an estimate made for doubtful accounts based on a review of outstanding amounts on a quarterly basis. Management generally records an allowance for doubtful accounts for 50% of balances over 90 days and 100% of balances over 120 days. Accounts receivable are written off when collection efforts have been exhausted and they are deemed uncollectible. Recoveries, if any, of receivables previously written off are recorded when received. The Trust does not charge interest on accounts receivable balances and these receivables are unsecured. | |||||||||||||||||
Fiscal Year | Balance at the Beginning of Year | Charged to Expense | Deductions | Balance at the End of Year | |||||||||||||
2014 | $ | 34,415 | $ | 5,061 | $ | (15,883 | ) | $ | 23,593 | ||||||||
2015 | $ | 23,593 | $ | 112,332 | $ | (96,880 | ) | $ | 39,045 | ||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
We have an employee equity incentive plan, which is described more fully in Note 21 - “Share-Based Payments.” For fiscal year 2015 and 2014, the Trust has paid the annual fees due to its Trustees by issuing Shares of Beneficial Interest out of its authorized but unissued Shares of Beneficial Interest. Upon issuance, the Trust recognizes the shares as outstanding. The Trust recognizes expense related to the issuance based on the fair value of the shares upon the date of the restricted share grant and amortizes the expense equally over the period during which the shares vest to the Trustees. | |||||||||||||||||
During fiscal year 2015, the Trust granted restricted stock awards of 23,100 Shares to members of the Board of Trustees, all of which vested in fiscal year 2015 resulting in stock-based compensation of $36,666. During fiscal year 2014, the Trust granted restricted stock awards of 18,000 Shares to members of the Board of Trustees, all of which vested in fiscal year 2014 resulting in stock-based compensation of $30,960. | |||||||||||||||||
The following table summarizes restricted share activity during fiscal years 2015 and 2014. | |||||||||||||||||
Restricted Shares | |||||||||||||||||
Shares | Weighted-Average Per Share Grant Date Fair Value | ||||||||||||||||
Balance at January 31, 2013 | - | - | |||||||||||||||
Granted | 18,000 | $ | 1.72 | ||||||||||||||
Vested | (18,000 | ) | $ | 1.72 | |||||||||||||
Forfeited | - | — | |||||||||||||||
Balance of unvested awards at January 31, 2014 | - | $ | - | ||||||||||||||
Granted | 23,100 | $ | 1.59 | ||||||||||||||
Vested | (23,100 | ) | $ | 1.59 | |||||||||||||
Forfeited | - | - | |||||||||||||||
Balance of unvested awards at January 31, 2015 | - | $ | - | ||||||||||||||
TREASURY STOCK | |||||||||||||||||
Treasury stock is carried at cost, including any brokerage commissions paid to repurchase the shares. Any shares issued from treasury stock are removed at cost, with the difference between cost and fair value at the time of issuance recorded against shares of Beneficial Interest. | |||||||||||||||||
INCOME TAXES | |||||||||||||||||
The Trust is subject to federal and state corporate income taxes, and accounts for deferred taxes utilizing an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when it is determined to be more likely than not that some portion, or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS | |||||||||||||||||
In fiscal years 2015 and 2014, the Trust paid dividends of $0.01 per share in the fourth quarter of each year, or total dividends of $82,665 and $83,449, respectively. The Trust’s ability to pay dividends is largely dependent upon the operations of the Hotels. | |||||||||||||||||
NON-CONTROLLING INTEREST | |||||||||||||||||
Non-controlling interest in the Trust represents the limited partners’ proportionate share of the capital and earnings of certain of our subsidiary entities. As of January 31, 2015, these non-controlling interests included an approximately 49% interest in an InnSuites hotel located in Tucson, Arizona, an approximately 48% interest in the InnSuites hotel located in Ontario, California, an approximately 49% interest in the InnSuites hotel located in Albuquerque, New Mexico and an approximately 26% interest in the InnSuites hotel located in Yuma, Arizona. Non-controlling interest is also represented by the Class A and Class B Partnership units discussed in Note 1, or an approximately 28% interest in the Partnership as of January 31, 2015. | |||||||||||||||||
Income or loss is allocated to the non-controlling interest based on a weighted average ownership percentage in the entities throughout the period, and capital is allocated based on the ownership percentage at year-end. Any difference between the weighted average and point-in-time allocations is presented as a reallocation of non-controlling interest as a component of shareholders’ equity. | |||||||||||||||||
(LOSS) INCOME PER SHARE | |||||||||||||||||
Basic and diluted (loss) income per Share of Beneficial Interest is computed based on the weighted-average number of Shares of Beneficial Interest and potentially dilutive securities outstanding during the period. Dilutive securities are limited to the Class A and Class B units of the Partnership, which are convertible into 3,684,069 Shares of the Beneficial Interest, as discussed in Note 1. | |||||||||||||||||
For the fiscal years ended January 31, 2015 and 2014, there were Class A and Class B Partnership units outstanding, which are convertible into Shares of Beneficial Interest of the Trust. Assuming conversion at the beginning of each period, the aggregate weighted-average of these Shares of Beneficial Interest would have been 3,684,069 and 3,693,972 in addition to the basic shares outstanding for fiscal years 2015 and 2014, respectively. These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were anti-dilutive during both fiscal year 2015 and 2014 and are excluded from the calculation of diluted earnings per share for those years due to the Trust’s losses, and accordingly, no reconciliation is provided of basic earnings per share to diluted earnings per share. | |||||||||||||||||
ASSETS HELD FOR SALE | |||||||||||||||||
The Trust considers assets held for sale when management approves and commits to a formal plan to actively market a property or group of properties for sale and a signed sales contract and significant non-refundable deposit or contract break-up fee exists. Upon designation as an asset held for sale, the Trust records the carrying value of each property or group of properties at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we would cease the recognition of depreciation expense. Any gain realized in connection with the sale of a property for which the Trust has significant continued involvement (such as through a long-term management agreement) would be deferred and recognized over the initial term of the related agreement.. | |||||||||||||||||
SEGMENT REPORTING | |||||||||||||||||
During the fourth quarter of 2014 management determined that its operations are comprised of two reportable segments, a Hotel Operating & Corporate segment that has ownership interest in five hotel properties with an aggregate of 843 suites in Arizona, southern California and New Mexico, and the IBC Developments segment serving 6,300 unrelated hotel properties. The Trust has a concentration of assets in the southwest United States, and the southern Arizona market. The Trust has restated the corresponding items of segment information for earlier periods to reflect the change in the IBC Developments review structure. On an overall basis, the Trust has elected to only put the costs directly attributable to the IBC Developments in that segment. Included in these costs are sales, marketing and technology development costs. | |||||||||||||||||
IBC Hotels, LLC (IBC Hotels), a wholly owned subsidiary of InnSuites Hospitality Trust, which has a network of approximately 6,300 properties it provides services to, was formed during the fiscal year ended January 31, 2014. Operating results became significant during the fiscal year ended January 31, 2015. IBC Hotels charges a 10% booking fee which, we believe, increases the independent hotel profits. Competitors of IBC Hotels can charge anywhere from a 30% to 50% booking fee. InnDependent InnCentives, IBC’s loyalty program, allows hoteliers to benefit from guests who frequently stay at IBC independent hotels. We are planning significant expansion of IBC Hotels during the next couple of fiscal years as we concentrate our sales and marketing efforts towards consumers. | |||||||||||||||||
The Chief Operating Decision Maker (“CODM”), the Trust’s CEO, Mr. Wirth | |||||||||||||||||
, | |||||||||||||||||
does not see any value in allocating costs for items not directly attributable to the IBC Developments segment for several reasons. The first is that the Trust’s base business is the Hotel Operations & Corporate segment, and the majority of the expenses of the Trust would continue even if the Trust was not in the reservation business. If the Trust were to allocate general expenses to the reservation business based on some allocation method (e.g. on sales), it would not improve the value of the segment reporting, it would only serve to make the Hotel Operations & Corporate business look better and give investors a false sense of the profitability of the Hotel Operations & Corporate business without the IBC Developments segment. The CODM wants to understand the true investment in the reservation business and that result is delivered by allocating only costs directly associated with the IBC Developments segment. By leaving the remainder of costs not associated with the IBC Developments segment in the Hotel Operations & Corporate segment, the Trust is able to compare the Hotel Operations & Corporate segment to historical figures where the bulk of the business was only that segment of operations to gauge relative efficiency of the Hotel Operations & Corporate operation vs. historical norms. | |||||||||||||||||
The Trust has chosen to focus its hotel investments in the southwest region of the United States. The CODM does not review assets by geographical region, therefore no income statement or balance sheet information by geographical region is provided. | |||||||||||||||||
ADVERTISING COSTS | |||||||||||||||||
Amounts incurred for advertising costs are expensed as incurred. Advertising expense totaled approximately $588,000 and $624,000 for the years ended January 31, 2015 and 2014, respectively. | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
For disclosure purposes, fair value is determined by using available market information and appropriate valuation methodologies. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. The fair value framework specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The fair value hierarchy levels are as follows: | |||||||||||||||||
● | Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured; | ||||||||||||||||
● | Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and / or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are level 2 valuation techniques. | ||||||||||||||||
● | Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect a company’s own judgments about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||
The Trust has no assets or liabilities that are carried at fair value on a recurring basis and had no fair value re-measurements during the years ended January 31, 2015 and 2014. The Trust’s financial instruments utilize level 3 inputs in the determination of fair value and consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advances to related parties and debt. | |||||||||||||||||
Due to their short maturities, the carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses approximates fair value. The fair value of mortgage notes payable, notes payable to banks and notes and advances payable to related parties is estimated by using the current rates which would be available for similar loans having the same remaining maturities and are based on level 3 inputs. See Note 18 – “Fair Value of Financial Instruments.” |
Note_3_Sale_of_Ownership_Inter
Note 3 - Sale of Ownership Interests in Albuquerque Subsidiary | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Sale of Membership Interest Disclosure [Text Block] | 3. SALE OF OWNERSHIP INTERESTS IN ALBUQUERQUE SUBSIDIARY |
On July 22, 2010, the Board of Trustees unanimously approved, with Mr. Wirth abstaining, for the Partnership to enter into an agreement with Rare Earth, an affiliate of Mr. Wirth, to sell units in Albuquerque Suite Hospitality, LLC (the “Albuquerque entity”), which owns and operates the Albuquerque, New Mexico hotel property. Under the agreement, Rare Earth agreed to either purchase or bring in other investors to purchase at least 49% of the membership interests in the Albuquerque entity and the parties agreed to restructure the operating agreement of the Albuquerque entity. A total of 400 units were available for sale for $10,000 per unit, with a two-unit minimum subscription. On September 24, 2010, the parties revised the Amended and Restated Operating Agreement to name Rare Earth as the administrative member of the Albuquerque entity in charge of the day-to-day management. | |
On December 9, 2013, the Trust entered into an updated restructuring agreement with Rare Earth to allow for the sale of additional interest units in the Albuquerque entity for $10,000 per unit. Under the updated restructuring agreement, Rare Earth agreed to either purchase or bring in other investors to purchase up to 150 (and potentially up to 190 if the overallotment is exercised) units. Under the terms of the updated restructuring agreement, the Trust agreed to hold at least 50.1% of the outstanding units in the Albuquerque entity, on a post-transaction basis and intends to maintain this minimum ownership percentage through the purchase of units under this offering. The Board of Trustees approved this restructuring on December 9, 2013. The units in the Albuquerque entity are allocated to three classes with differing cumulative discretionary priority distribution rights through December 31, 2015. Class A units are owned by unrelated third parties and have first priority for distributions. Class B units are owned by the Trust and have second priority for distributions. Class C units are owned by Rare Earth or other affiliates of Mr. Wirth and have the lowest priority for distributions from the Albuquerque entity. Priority distributions of $700 per unit per year are cumulative until December 31, 2015; however, after December 31, 2015 Class A unit holders continue to hold a preference on distributions over Class B and Class C unit holders. For the six months ended January 31, 2015, the Trust paid an additional $43.75 per $10,000 investment per calendar quarter, which is considered a return of capital per the operating agreement. | |
If certain triggering events related to the Albuquerque entity occur prior to the payment of all accumulated distributions to its members, such accumulated distributions will be paid out of any proceeds of the event before general distribution of the proceeds to the members. In the event that funds generated from a triggering event are insufficient to pay the total amount of all such accumulated distributions owed to the members, all Class A members will participate pro rata in the funds available for distribution to them until paid in full, then Class B, and then Class C. After all investors have received their initial capital plus a 7% per annum simple return, any additional profits will be allocated 50% to Rare Earth, with the remaining 50% allocated proportionately to all unit classes. Rare Earth received a restructuring fee of $128,000, conditioned upon and arising from the sale of the first 100 units in the Albuquerque entity following the December 9, 2013 restructuring. The Albuquerque entity plans to use its best efforts to pay the discretionary priority distributions. The Trust does not guarantee and is not otherwise obligated to pay the cumulative discretionary priority distributions. InnSuites Hotels will continue to provide management, licensing and reservation services to the Albuquerque, New Mexico property. | |
During the twelve months ended January 31, 2015, there were 45.5 Class A units of the Albuquerque entity sold, 55.5 Class B units sold and 8.5 Class C units sold at $10,000 per unit. As of January 31, 2015, the Trust held a 50.82% ownership interest, or 279 Class B units, in the Albuquerque entity, Mr. Wirth and his affiliates held a 1.64% interest, or 9 Class C units, and other parties held a 47.54% interest, or 261 Class A units. During the twelve months ended January 31, 2014, there were 18.5 Class A units of the Albuquerque entity sold and a net of 21.0 Class B units sold at $10,000 per unit. As of January 31, 2014, the Trust held a 50.86 ownership interest, or 223.5 Class B units, in the Albuquerque entity, Mr. Wirth and his affiliates held a 0.11% interest, or 0.5 Class C unit, and other parties held a 49.03% interest, or 215.5 Class A units. As of January 31, 2015, the Albuquerque entity has discretionary Priority Return payments to unrelated unit holders of approximately $183,000, to the Trust of approximately $195,000, and to Rare Earth of approximately $6,000 per year payable quarterly for calendar year 2015. |
Note_4_Sale_of_Ownership_Inter
Note 4 - Sale of Ownership Interests in Tucson Hospitality Properties Subsidiary | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Sale of Partnership Interests in Tucson Hospitality Properties, LP [Text Block] | 4. SALE OF OWNERSHIP INTERESTS IN TUCSON HOSPITALITY PROPERTIES SUBSIDIARY |
On February 17, 2011, the Partnership entered into a restructuring agreement with Rare Earth to allow for the sale of non-controlling interest units in Tucson Hospitality Properties, LP (the “Tucson entity”), which operates the Tucson Oracle hotel property, then wholly-owned by the Partnership. Under the agreement, Rare Earth agreed to either purchase or bring in other investors to purchase up to 250 units, which represents approximately 41% of the outstanding limited partnership units in the Tucson entity, on a post-transaction basis, and the parties agreed to restructure the limited partnership agreement of the Tucson entity. The Board of Trustees approved this restructuring on January 31, 2011. | |
On October 1, 2013, the Partnership entered into an updated restructured limited partnership agreement with Rare Earth to allow for the sale of additional interest units in the Tucson entity for $10,000 per unit. Under the agreement, Rare Earth agreed to either purchase or bring in other investors to purchase up to 160 (and potentially up to 200 if the overallotment is exercised) units. Under the terms of the updated restructuring agreement, the Partnership agreed to hold at least 50.1% of the outstanding limited partnership units in the Tucson entity, on a post-transaction basis and intends to maintain this minimum ownership percentage through the purchase of units under this offering. The Board of Trustees approved this restructuring on September 14, 2013. The limited partnership interests in the Tucson entity are allocated to three classes with differing cumulative discretionary priority distribution rights through June 30, 2016. Class A units are owned by unrelated third parties and have first priority for distributions. Class B units are owned by the Partnership and have second priority for distributions. Class C units are owned by Rare Earth or other affiliates of Mr. Wirth and have the lowest priority for distributions from the Tucson entity. Priority distributions of $700 per unit per year are cumulative until June 30, 2016; however, after June 30, 2016 Class A unit holders continue to hold a preference on distributions over Class B and Class C unit holders. | |
If certain triggering events related to the Tucson entity occur prior to the payment of all accumulated distributions to its members, such accumulated distributions will be paid out of any proceeds of the event before general distribution of the proceeds to the members. In the event that funds generated from a triggering event are insufficient to pay the total amount of all such accumulated distributions owed to the members, all Class A members will participate pro rata in the funds available for distribution to them until paid in full, then Class B, and then Class C. After all investors have received their initial capital plus a 7% per annum simple return, any additional profits will be allocated 50% to Rare Earth, with the remaining 50% allocated proportionately to all unit classes. Rare Earth also received a restructuring fee of $128,000, conditioned upon and arising from the sale of the first 100 units in the Tucson entity following the October 1, 2013 restructuring. The Tucson entity plans to use its best efforts to pay the discretionary priority distributions. The Trust does not guarantee and is not otherwise obligated to pay the cumulative discretionary priority distributions. InnSuites Hotels will continue to provide management, licensing and reservation services to the Tucson, Arizona property. | |
During the twelve months ended January 31, 2015, there were 9.5 Class A units of the Tucson entity sold, of which 1 Class A unit was purchased from REF, and 9 Class B units sold at $10,000 per unit. As of January 31, 2015, the Partnership held a 51.01% ownership interest, or 404 Class B units, in the Tucson entity, Mr. Wirth and his affiliates held a 1.39% interest, or 11 Class C units, and other parties held a 47.60% interest, or 377 Class A units. During the twelve months ended January 31, 2014, there were 108.5 Class A units of the Tucson entity sold and a net of 54 Class B units sold at $10,000 per unit. As of January 31, 2014, the Partnership held a 51.00% ownership interest, or 395 Class B units, in the Tucson entity, Mr. Wirth and his affiliates held a 1.55% interest, or 12 Class C units, and other parties held a 47.45% interest, or 367.5 Class A units. As of January 31, 2015, the Tucson entity has discretionary Priority Return payments to unrelated unit holders of approximately $264,000, to the Partnership of approximately $283,000 and to Rare Earth of approximately $8,000 per year payable quarterly for calendar years 2015 and 2016. |
Note_5_Sale_of_Ownership_Inter
Note 5 - Sale of Ownership Interests in Ontario Hospitality Properties Subsidiary | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Sale of Partnership Interest in Ontario Hospitality Properties LP [Text Block] | 5. SALE OF OWNERSHIP INTERESTS IN ONTARIO HOSPITALITY PROPERTIES SUBSIDIARY |
On February 29, 2012, the Trust and Partnership entered into a restructuring agreement with Rare Earth to allow for the sale of non-controlling interest units in Ontario Hospitality Properties, LP for $10,000 per unit, which operates the Ontario hotel property, then wholly-owned by the Partnership. Under the agreement, Rare Earth agreed to either purchase or bring in other investors to purchase up to 250 units, which represents approximately 49% of the outstanding partnership units in the Ontario entity, on a post-transaction basis, and the parties agreed to restructure the limited partnership agreement of the Ontario entity. The Board of Trustees approved this restructuring on February 1, 2012. Under the restructured limited partnership agreement, Rare Earth became a general partner of the Ontario entity along with the Trust and Partnership. | |
On March 1, 2014, the Trust and Partnership entered into an updated restructuring agreement with Rare Earth to allow for the sale of additional interest units in the Ontario entity for $10,000 per unit. Under the updated restructuring agreement, Rare Earth agreed to either purchase or bring in other investors to purchase up to 235 (and potentially up to 275 if the overallotment is exercised) units. Under the terms of the updated restructuring agreement, the Partnership agreed to hold at least 50.1% of the outstanding limited partnership units in the Ontario entity, on a post-transaction basis and intends to maintain this minimum ownership percentage through the purchase of units under this offering. The Board of Trustees approved this restructuring on March 24, 2014. The limited partnership interests in the Ontario entity are allocated to three classes with differing cumulative discretionary priority distribution rights through March 31, 2017. Class A units are owned by unrelated third parties and have first priority for distributions. Class B units are owned by the Trust and have second priority for distributions. Class C units are owned by Rare Earth or other affiliates of Mr. Wirth and have the lowest priority for distributions from the Ontario entity. Priority distributions of $700 per unit per year are cumulative until December 31, 2015; however, after March 31, 2017 Class A unit holders continue to hold a preference on distributions over Class B and Class C unit holders. | |
If certain triggering events related to the Ontario entity occur prior to the payment of all accumulated distributions to its members, such accumulated distributions will be paid out of any proceeds of the event before general distribution of the proceeds to the members. In the event that funds generated from a triggering event are insufficient to pay the total amount of all such accumulated distributions owed to the members, all Class A members will participate pro rata in the funds available for distribution to them until paid in full, then Class B, and then Class C. After all investors have received their initial capital plus a 7% per annum simple return, any additional profits will be allocated 50% to Rare Earth, with the remaining 50% allocated proportionately to all unit classes. Rare Earth also received a restructuring fee of $128,000, conditioned upon and arising from the sale of the first 100 units in the Ontario entity following the March 1, 2014 restructuring. The Ontario entity is required to use its best efforts to pay the priority distributions. The Trust does not guarantee and is not otherwise obligated to pay the cumulative priority distributions. InnSuites Hotels will continue to provide management, licensing and reservation services to the Ontario, California property. | |
During the twelve months ended January 31, 2015, there were 109 Class A units of the Ontario entity sold, 84 Class B units sold and 20 Class C units sold at $10,000 per unit. As of January 31, 2015, and after the recognition of upward adjustments to certain of the unit holders, as specified by the March 24, 2014 restructuring agreement, the Partnership held a 51.71% ownership interest, or 498 Class B units, in the Ontario entity, Mr. Wirth and his affiliates held a 3.64% interest through Rare Earth, or 35 Class C units, and other parties held a 44.65% interest, or 430 Class A units. As of January 31, 2014, the Partnership and Trust held a 61.60% ownership interest, or 393.0 Class B units, in the Ontario entity, Mr. Wirth and his affiliates held a 1.57% interest through Rare Earth, or 10 Class C units, and other parties held a 36.83% interest, or 235 Class A units. As of January 31, 2015 the Ontario entity has future annual discretionary Priority Return payments to unrelated unit holders of approximately $301,000, to the Partnership of approximately $349,000 and to Rare Earth of approximately $25,000 per year payable quarterly for calendar years 2015, 2016 and 2017. |
Note_6_Sale_of_Ownership_Inter
Note 6 - Sale of Ownership Interests in Yuma Hospitality Properties Subsidiary | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Sale Of Partnership Interests In Yuma Hospitality Properties L.P. [Text Block] | 6. SALE OF OWNERSHIP INTERESTS IN YUMA HOSPITALITY PROPERTIES SUBSIDIARY |
On October 24, 2014, the Trust and Partnership entered into a restructuring agreement with Rare Earth to allow for the sale of non-controlling interest units in Yuma Hospitality Properties, Limited Partnership (the “Yuma” entity) for $10,000 per unit, which operates the Yuma hotel property, then wholly-owned by the Trust. Prior to the agreement there were 750 units outstanding and as a result of the agreement, an additional 50 units will be created for sale. Under the agreement, Rare Earth agreed to either purchase or bring in other investors to purchase up to 398 units, which represents approximately 49% of the outstanding partnership units in the Yuma entity, on a post-transaction basis, and the parties agreed to restructure the limited partnership agreement of the Yuma entity. The Board of Trustees approved this restructuring on October 24, 2014. Under the restructured limited partnership agreement, Rare Earth became a general partner of the Yuma entity along with the Trust and Partnership. | |
The limited partnership interests in the Yuma entity are allocated to three classes with differing cumulative discretionary priority distribution rights through January 31, 2020. Class A units are owned by unrelated third parties and have first priority for distributions. Class B units are owned by the Trust and have second priority for distributions. Class C units are owned by Rare Earth or other affiliates of Mr. Wirth and have the lowest priority for distributions from the Yuma entity. Priority distributions of $700 per unit per year are cumulative until January 31, 2020. After January 31, 2020, all Partnership Interests will share equally in all distributions. | |
If certain triggering events related to the Yuma entity occur prior to the payment of all accumulated distributions to its members, such accumulated distributions will be paid out of any proceeds of the event before general distribution of the proceeds to the members. In the event that funds generated from a triggering event are insufficient to pay the total amount of all such accumulated distributions owed to the members, all Class A members will participate pro rata in the funds available for distribution to them until paid in full, then Class B, and then Class C. After all investors have received their initial capital plus a 7% per annum simple return, any additional profits will be allocated 50% to Rare Earth, with the remaining 50% allocated proportionately to all unit classes. Rare Earth will receive a restructuring fee of $350,000, conditioned upon and arising from the sale of the first 150 units in the Yuma entity following the October 24, 2014 restructuring. The Trust has paid out $85,000 of the $350,000 restructuring fee and accrued the remaining $265,000 at January 31, 2015. The $265,000 was paid in March, 2015. The Yuma entity is required to use its best efforts to pay the priority distributions. The Trust does not guarantee and is not otherwise obligated to pay the cumulative priority distributions. InnSuites Hotels will continue to provide management, licensing and reservation services to the Yuma, Arizona property. | |
During the twelve months ended January 31, 2015, there were 210.10 Class A units of the Yuma entity sold at $10,000 per unit, of which 160.10 were sold from the Trust and the remaining 50 units were newly issued units. As of January 31, 2015, the Trust held a 73.61% ownership interest, or 588.90 Class B units, in the Tucson entity, Mr. Wirth and his affiliates held a 0.13% interest, or 1 Class C unit, and other parties held a 26.26% interest, or 210.10 Class A units. As of January 31, 2015, the Yuma entity has discretionary Priority Return payments to unrelated unit holders of approximately $147,000 to the Trust of approximately $412,000 and to Rare Earth of approximately $1,000 per year payable quarterly for calendar years 2015, 2016, 2017, 2018, 2019 and 2020. |
Note_7_Property_Plant_and_Equi
Note 7 - Property, Plant, and Equipment, Hotel Properties | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 7. PROPERTY, PLANT, AND EQUIPMENT AND HOTEL PROPERTIES | ||||||||
As of January 31, 2015 and 2014, hotel properties consisted of the following: | |||||||||
2015 | 2014 | ||||||||
Land | $ | 5,534,150 | $ | 3,034,150 | |||||
Building and improvements | 35,050,637 | 34,236,297 | |||||||
Furniture, fixtures and equipment | 5,695,356 | 5,167,117 | |||||||
Total hotel properties | 46,280,143 | 42,437,564 | |||||||
Less accumulated depreciation | (20,466,347 | ) | (18,767,369 | ) | |||||
Hotel Properties in Service, net | 25,813,796 | 23,670,195 | |||||||
Construction in progress | 4,650 | 2,520 | |||||||
Hotel properties, net | $ | 25,818,446 | $ | 23,672,715 | |||||
As of January 31, 2015 and 2014, property, plant and equipment consisted of the following: | |||||||||
2015 | 2014 | ||||||||
Land | $ | 7,005 | $ | 7,005 | |||||
Building and improvements | 75,662 | 75,662 | |||||||
Furniture, fixtures and equipment | 388,565 | 380,846 | |||||||
Total property, plant and equipment | 471,232 | 463,513 | |||||||
Less accumulated depreciation | (395,140 | ) | (374,165 | ) | |||||
Property, Plant and Equipment, net | $ | 76,092 | $ | 89,348 | |||||
During the twelve month period ending January 31, 2015, gross hotel properties increased by approximately $3,843,000, which included a $2,500,000 land purchase under our Tucson Oracle building, and additional building improvements and furniture, fixtures and equipment. |
Note_8_Prepaid_Expenses_and_Ot
Note 8 - Prepaid Expenses and Other Current Assets | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Other Current Assets [Text Block] | 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||||
Prepaid expenses and other current assets are carried at historic cost and are expected to be consumed within one year. As of January 31, 2015 and 2014, prepaid expenses and other current assets consisted of the following: | |||||||||
2015 | 2014 | ||||||||
Prepaid Assets | $ | 51,788 | $ | 34,188 | |||||
Tax and Insurance Escrow | 31,208 | 125,353 | |||||||
Deposits | 25,295 | 25,295 | |||||||
Prepaid Insurance | 19,953 | 87,492 | |||||||
Prepaid Workman's Compensation | 21,186 | 53,878 | |||||||
Miscellaneous Prepaid Expenses | 2,569 | 57,853 | |||||||
Total Prepaid Expenses and Current Assets | $ | 151,999 | $ | 384,059 |
Note_9_Accounts_Payable_and_Ac
Note 9 - Accounts Payable and Accrued Expenses | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||||||||
As of January 31, 2015 and 2014, accounts payable and accrued expenses consisted of the following: | |||||||||
2015 | 2014 | ||||||||
Accounts Payable | $ | 1,019,064 | $ | 954,776 | |||||
Accrued Salaries and Wages | 171,040 | 134,222 | |||||||
Accrued Vacation | 24,718 | 13,334 | |||||||
Sales Tax Payable | 156,472 | 341,909 | |||||||
Income Tax Payable | 200,000 | 48,715 | |||||||
Accrued Interest Payable | 52,852 | 52,852 | |||||||
Advanced Customer Deposits | 133,452 | 68,912 | |||||||
Accrued Property Taxes | 213,440 | 250,393 | |||||||
Accrued Land Lease | 34,494 | 95,957 | |||||||
Accrued Other | 641,308 | 260,568 | |||||||
Total Accounts Payable and Accrued Liabilities | $ | 2,646,840 | $ | 2,221,638 |
Note_10_Mortgage_Notes_Payable
Note 10 - Mortgage Notes Payable | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Mortgage Notes Payable Disclosure [Text Block] | 10. MORTGAGE NOTES PAYABLE | ||||||||
At January 31, 2015 and 2014, the Trust had mortgage notes payable outstanding with respect to each of the Hotels except the Albuquerque property. The mortgage notes payable have various repayment terms and have scheduled maturity dates ranging from April 2015 to November 2029. Weighted average interest rates on the mortgage notes payable for the fiscal years ended January 31, 2015 and 2014 were 4.34% and 4.89%, respectively. | |||||||||
The following table summarizes the Trust’s mortgage notes payable as of January 31: | |||||||||
2015 | 2014 | ||||||||
Albuquerque property mortgage note payable paid in full at January 31, 2015. | $ | - | $ | 1,126,983 | |||||
Mortgage note payable, due in monthly installments of $36,835, including interest at | 5,580,410 | 5,983,480 | |||||||
4.75% per year, through August 22, 2024, plus a balloon | |||||||||
payment of $3,585,591 in August 2024, secured by the Ontario property with a carrying value of | |||||||||
$5.6 million at January 31, 2015. | |||||||||
Mortgage note payable, due in monthly installments of $26,312, including interest at 4.19% per year, | 3,462,188 | 1,241,111 | |||||||
through November 18, 2029, secured by the Tucson Oracle property with a carrying value of $6.5 | |||||||||
million at January 31, 2015. | |||||||||
Mortgage note payable, due in variable monthly installments ($29,776 as of January 31, 2015) | 4,861,936 | 5,039,946 | |||||||
including interest at the prime rate (3.25% per year as of January 31, 2015), through April 28, | |||||||||
2015, plus a balloon payment of $4,812,244 in April 2015, secured by the Tucson St. Mary's | |||||||||
property with a carrying value of $7.3 million at January 31, 2015. | |||||||||
Mortgage note payable, due in monthly installments of $32,419, including interest at the prime rate | 5,217,202 | 5,355,051 | |||||||
plus one percentage point over the index, with a floor of 5.0% per year (5% per year as of | |||||||||
January 31, 2015), through August 1, 2022 plus a balloon payment of $4,112,498 in September | |||||||||
2022, secured by the Yuma property with a carrying value of $5.1 million at January 31, 2015. | |||||||||
Totals: | $ | 19,121,736 | $ | 18,746,571 | |||||
The mortgage note payable secured by the Tucson St. Mary’s hotel property contains recourse provisions to the Partnership and Trust as full guarantors. The mortgage note payable secured by the Yuma hotel property is recourse to the Trust as a full guarantor. None of the other mortgage notes are recourse to the Partnership or the Trust. | |||||||||
On June 2, 2014, the Trust paid off the Albuquerque Suite Hospitality, LLC property mortgage, which had an outstanding balance of $1,099,299 at such time. | |||||||||
On August 22, 2014, the Ontario entity, a subsidiary of the Trust, entered into a $5,700,000 mortgage loan with Arizona Bank & Trust (the “AZB&T Agreement”) to refinance the then existing term debt. The AZB&T Agreement calls for a 10 year maturity date and an interest rate of 4.75% fixed for the first five years and then variable at Wall Street Journal Prime + 1.50% with a 4.75% floor for the remaining 5 years of the term. Prepayment fees exist for refinancing this debt with another lender in the first three years. As of January 31, 2015, the mortgage loan balance was approximately $5,580,000, net of a discount of approximately $48,000. | |||||||||
On November 24, 2014, the Tucson Oracle entity, entered into a $3,500,000 mortgage loan with Kansas State Bank of Manhattan to acquire the land associated with this property, re-finance the existing Tucson hotel loan first deed of trust and pay off other existing debt. This new loan lowered the interest rate for this property’s mortgage from 8.0% to 4.19%. The $3,500,000 commercial real estate loan has a 15 year term with 4.19% fixed interest rate for five years, and adjusts annually based upon the Weekly Average Yield of the US Treasury Securities, with a 4.19% floor. The loan closed simultaneous to the land purchase. Rare Earth, the Partnership, the Trust, the Wirth Family Trust dated July 14, 2006, James and Gail Wirth are joint guarantors. As of January 31, 2015, the mortgage loan balance was approximately $3,462,000, net of a discount of approximately $8,000. Prior to the purchase of the land associated with the Tucson Oracle property, the Tucson Oracle entity was a party to a ground lease that was set to expire in 2050, and incurred approximately $154,000 and $188,000 of land lease expense for the fiscal years ended January 31, 2015 and 2014, respectively. | |||||||||
On February 26, 2015, the Trust through one of its subsidiaries, Tucson Saint Mary’s Suite Hospitality, LLC obtained a loan extension on its first trustee mortgage to April 28, 2015. All other terms of the agreement remain the same. Management anticipates refinancing this note on or about April 28, 2015. | |||||||||
See Note 14 – “Minimum Debt Payments” for scheduled minimum payments on the mortgage notes payable. |
Note_11_Notes_Payable_to_Banks
Note 11 - Notes Payable to Banks | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Short-term Debt [Text Block] | 11. NOTES PAYABLE TO BANKS |
On May 21, 2014, Tucson Hospitality Properties LLP, a subsidiary of the Trust, entered into a $447,100 business loan, including $25,307 of loan fees, with American Express Bank, FSB (the “Tucson Oracle Merchant Agreement”) with a maturity date of May 21, 2015. The Tucson Oracle Merchant Agreement includes a loan fee of 6% of the original principal balance of the loan with acceleration provisions upon default. The business loan is secured and paid back with 15% of the Tucson Oracle American Express, VISA and MasterCard merchant receipts received during the loan period. As of January 31, 2015, the business loan balance was approximately $201,000, net of a discount of approximately $8,000. | |
On July 24, 2014, Tucson Saint Mary’s Suite Hospitality LLC, a subsidiary of the Trust, entered into a $451,560 business loan, including $25,560 of loan fees, with American Express Bank, FSB (the “St. Mary’s Merchant Agreement”) with a maturity date of July 24, 2015. The St. Mary’s Merchant Agreement includes a loan fee of 6% of the original principal balance of the loan with acceleration provisions upon default. The business loan is secured and paid back with 17% of the St. Mary’s American Express, VISA, MasterCard and Discover merchant receipts received during the loan period. As of January 31, 2015, the business loan balance was approximately $267,000, net of a discount of approximately $13,000. | |
On August 19, 2014, Ontario Hospitality Properties, LP (the “Ontario entity”), a subsidiary of the Trust, entered into a $477,000 business loan, including $27,000 of loan fees, with American Express Bank, FSB (the “Ontario Merchant Agreement”) with a maturity date of August 19, 2015. The Ontario Merchant Agreement includes a loan fee of 6% of the original principal balance of the loan with acceleration provisions upon default. The business loan is secured and paid back with 27% of the Ontario entity American Express, VISA, MasterCard and Discover merchant receipts received during the loan period. As of January 31, 2015, the business loan balance was approximately $175,000, net of a discount of approximately $15,000. | |
On September 16, 2014, Yuma Hospitality Properties Limited Partnership, a subsidiary of the Trust, entered into a $415,520 business loan, including $23,250 of loan fees, with American Express Bank, FSB (the “Yuma Merchant Agreement”) with a maturity date of September 16, 2015. The Yuma Merchant Agreement includes a loan fee of 6% of the original principal balance of the loan with acceleration provisions upon default. The business loan is secured and paid back with 22% of the Yuma American Express, VISA, MasterCard and Discover merchant receipts received during the loan period. As of January 31, 2015, the business loan balance was approximately $219,000, net of a discount of approximately $15,000. | |
On October 24, 2014, Albuquerque Suite Hospitality, LLC, a subsidiary of the Trust, entered into a $318,000 business loan, including $18,000 of loan fees, with American Express Bank, FSB (the “Albuquerque Merchant Agreement”) with a maturity date of October 24, 2015. The Albuquerque Merchant Agreement includes a loan fee of 6% of the original principal balance of the loan with acceleration provisions upon default. The business loan is secured and paid back with 14% of the Albuquerque American Express, VISA, MasterCard and Discover merchant receipts received during the loan period. As of January 31, 2015, the business loan balance was approximately $239,000, net of a discount of approximately $14,000. | |
As of January 31, 2015, the Trust has a revolving bank line of credit agreement, with a credit limit of $600,000. The line of credit bears interest at the prime rate plus 1.00% per annum with a 6.0% rate floor (6.0% as of January 31, 2015), has no financial covenants and was renewed on June 23, 2014 for one additional year and matures on June 23, 2015. The line is secured by a junior security interest in the Yuma, Arizona property and the Trust’s trade receivables. Mr. Wirth is a guarantor on the line of credit. The Trust had drawn funds of $125,000 on this line of credit as of January 31, 2015. |
Note_12_Line_of_Credit_Related
Note 12 - Line of Credit - Related Party | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Line of Credit Related Party [Text Block] | 12. LINES OF CREDIT – RELATED PARTY |
On January 1, 2012, Tucson Hospitality Properties LLP, a subsidiary of the Trust, entered into a $1,000,000 Demand/Revolving Line of Credit/Promissory Note or Note Receivable with Rare Earth, depending on whether amounts are due to or due from Rare Earth. The Demand/Revolving Line of Credit/Promissory Note or Note Receivable bears interest at 7.0% per annum, is interest only quarterly and was set to mature on January 31, 2015. The Demand/Revolving Line of Credit/Promissory Note or Note Receivable was amended on July 1, 2014 to extend the maturity date to March 31, 2015, and increase the maximum borrowing capacity from $1,000,000 to $1,400,000. The Demand/Revolving Line of Credit/Promissory Note or Note Receivable was further amended on October 27, 2014 to increase the maximum borrowing capacity from $1,400,000 to $2,000,000. As of March 31, 2015 the Demand/Revolving Line of Credit/Promissory Note or Note Receivable has been paid in full. No prepayment penalty existed on the Demand/Revolving Line of Credit/Promissory Note or Note Receivable. The balance fluctuated significantly through the periods presented. Related party interest expense for the Demand/Revolving Line of Credit/Promissory Note for the twelve months ended January 31, 2015 and 2014 was $42,912 and $10,360, respectively. Related party interest income for the Note Receivable for the twelve months ended January 31, 2015 and 2014 was $2,661 and $2,014, respectively. | |
On December 1, 2014, the Trust entered into a $1,000,000 net maximum Demand/Revolving Line of Credit/Promissory Note with Rare Earth. The Demand/Revolving Line of Credit/Promissory Note bears interest at 7.0% per annum, is interest only quarterly and matures on December 31, 2017. No prepayment penalty exists on the Demand/Revolving Line of Credit/Promissory Note. The balance fluctuates significantly through the period. The Demand/Revolving Line of Credit/Promissory Note has a net maximum borrowing capacity of $1,000,000. Related party interest expense for the Demand/Revolving Line of Credit/Promissory Note for the twelve months ended January 31, 2015 and 2014 was $659 and $0, respectively. | |
The above Demand/Revolving Line of Credit/Promissory Notes are presented together as one line item on the balance sheet and totaled a payable of $541,710 and $331,390 at January 31, 2015 and 2014, respectively, all of which is considered a current liability |
Note_13_Other_Notes_Payable
Note 13 - Other Notes Payable | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 13. OTHER NOTES PAYABLE |
As of January 31, 2015, the Trust had $525,670 in promissory notes outstanding to unrelated third parties arising from the repurchase of 83,260 Class A Partnership units in privately negotiated transactions, the repurchase of 79,583 Shares of Beneficial Interest in privately negotiated transactions, and a $400,000 Promissory Demand Note. These promissory notes bear interest at 7% per year and are due in varying monthly payments through June 2019. As of January 31, 2014, the Trust had $187,567 in secured promissory notes outstanding to unrelated third parties arising from the repurchase of 145,564 Class A Partnership units and the repurchase of 132,051 Shares of Beneficial Interest in privately negotiated transactions. |
Note_14_Minimum_Debt_Payments
Note 14 - Minimum Debt Payments | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||
Maturities of Long Term Debt [Text Block] | 14. MINIMUM DEBT PAYMENTS | ||||||||||||||||||||
Scheduled minimum payments of debt as of January 31, 2015 are as follows in the respective fiscal years indicated: | |||||||||||||||||||||
FISCAL YEAR | MORTGAGES | NOTES PAYABLE TO BANK | LINE OF CREDIT - RELATED PARTY | OTHER NOTES PAYABLE | TOTAL | ||||||||||||||||
2016 | $ | 5,333,595 | $ | 1,290,100 | $ | 541,710 | $ | 469,842 | $ | 7,635,247 | |||||||||||
2017 | 494,006 | - | - | 43,710 | 537,716 | ||||||||||||||||
2018 | 518,503 | - | - | 4,768 | 523,271 | ||||||||||||||||
2019 | 544,348 | - | - | 5,113 | 549,461 | ||||||||||||||||
2020 | 570,387 | - | - | 2,237 | 572,624 | ||||||||||||||||
Thereafter | 11,735,824 | - | - | - | 11,735,824 | ||||||||||||||||
$ | 19,196,663 | $ | 1,290,100 | $ | 541,710 | $ | 525,670 | $ | 21,554,143 |
Note_15_Description_of_Benefic
Note 15 - Description of Beneficial Interests | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 15. DESCRIPTION OF BENEFICIAL INTERESTS |
Holders of the Trust’s Shares of Beneficial Interest are entitled to receive dividends when and if declared by the Board of Trustees of the Trust out of funds legally available therefore. The holders of Shares of Beneficial Interest, upon any liquidation, dissolution or winding-down of the Trust, are entitled to share ratably in any assets remaining after payment in full of all liabilities of the Trust. The Shares of Beneficial Interest possess ordinary voting rights, each share entitling the holder thereof to one vote. Holders of Shares of Beneficial Interest do not have cumulative voting rights in the election of Trustees and do not have preemptive rights. | |
On January 2, 2001, the Board of Trustees approved a share repurchase program under Rule 10b-18 of the Securities Exchange Act of 1934, as amended, for the purchase of up to 250,000 Partnership units and/or Shares of Beneficial Interest in open market or privately negotiated transactions. On September 10, 2002, August 18, 2005 and September 10, 2007, the Board of Trustees approved the purchase of up to 350,000 additional Partnership units and/or Shares of Beneficial Interest in open market or privately negotiated transactions. Additionally, on January 5, 2009, September 15, 2009 and January 31, 2010, the Board of Trustees approved the purchase of up to 300,000, 250,000 and 350,000, respectively, additional Partnership units and/or Shares of Beneficial Interest in open market or privately negotiated transactions. Acquired Shares of Beneficial Interest will be held in treasury and will be available for future acquisitions and financings and/or for awards granted under the Trust’s equity compensation plans/programs. During the fiscal year ended January 31, 2015, the Trust acquired 99,897 Shares of Beneficial Interest in open market transactions at an average price of $2.20 per share. The average price paid includes brokerage commissions. The Trust intends to continue repurchasing Shares of Beneficial Interest in compliance with applicable legal and NYSE MKT requirements. The Trust remains authorized to repurchase an additional 127,919 Partnership units and/or Shares of Beneficial Interest pursuant to the publicly announced share repurchase program, which has no expiration date. | |
For the years ended January 31, 2015 and 2014, the Trust repurchased 99,897 and 51,308 Shares of Beneficial Interest at an average price of $2.20 and $1.86 per share, respectively. Repurchased Shares of Beneficial Interest are accounted for as treasury stock in the Trust’s Consolidated Statements of Shareholders’ Equity. |
Note_16_Federal_Income_Taxes
Note 16 - Federal Income Taxes | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Income Tax Disclosure [Text Block] | 16. INCOME TAXES | ||||||||
The Trust and its subsidiaries have federal income tax net operating loss carry forwards of approximately $6.5 million at January 31, 2015, having expiration dates ranging from fiscal years 2019 to 2034. The Trust periodically has ownership changes within the meaning of Internal Revenue Code Section 382. However, the Trust determined that such ownership changes would not have a material impact on the future use of the net operating losses. Generally, the Trust is no longer subject to income tax examinations prior to 2012 for federal and 2011 for state purposes. | |||||||||
Total and net deferred income tax assets at January 31, | 2015 | 2014 | |||||||
Net operating loss carryforwards | $ | 2,166,000 | $ | 2,914,000 | |||||
Bad debt allowance | (12,000 | ) | (16,000 | ) | |||||
Accrued expenses | 81,000 | 61,000 | |||||||
Syndications | 4,370,000 | 2,770,000 | |||||||
Prepaid insurance | 8,000 | 1,000 | |||||||
Alternative minimum tax credit | 91,000 | 61,000 | |||||||
Total deferred income tax assets | 6,704,000 | 5,791,000 | |||||||
Deferred income tax liability associated with book/tax differences in hotel properties | (2,472,000 | ) | (2,195,000 | ) | |||||
Net deferred income tax asset | 4,232,000 | 3,596,000 | |||||||
Valuation allowance | (4,232,000 | ) | (3,596,000 | ) | |||||
Net deferred income tax asset | $ | - | $ | - | |||||
The differences between the statutory and effective tax rates are as follows for the year ended January 31, 2015: | |||||||||
Federal statutory rates | $ | (694,000 | ) | (34 | %) | ||||
State income taxes | (141,000 | ) | (7 | %) | |||||
Change in valuation allowance | 636,000 | 67 | % | ||||||
Effective rate | $ | (199,000 | ) | (10 | %) | ||||
The differences between the statutory and effective tax rates are as follows for the year ended January 31, 2014: | |||||||||
Federal statutory rates | $ | (295,000 | ) | (37 | %) | ||||
State income taxes | (64,000 | ) | (8 | %) | |||||
Change in valuation allowance | 322,000 | 40 | % | ||||||
Effective rate | $ | (37,000 | ) | (5 | %) | ||||
The Trust's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Trust had no accrued interest or penalties at January 31, 2015 and 2014. |
Note_17_Other_Related_Party_Tr
Note 17 - Other Related Party Transactions | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 17. OTHER RELATED PARTY TRANSACTIONS |
As of January 31, 2015 and 2014, Mr. Wirth and his affiliates held 3,407,938 Class B Partnership units, which represented 25.8% of the total outstanding Partnership units. As of January 31, 2015 and 2014, Mr. Wirth and his affiliates held 6,053,276 and 6,055,376, respectively, Shares of Beneficial Interest in the Trust, which represented 73.2% and 72.6%, respectively, of the total issued and outstanding Shares of Beneficial Interest. | |
As of January 31, 2015 and 2014, the Trust owned 72.11% and 72.04% of the Partnership, respectively. As of January 31, 2015, the Partnership owned 100% of one InnSuites® hotels located in Tucson, Arizona, a 51.01% interest in another InnSuites® hotel located in Tucson, Arizona and a 51.71% interest in an InnSuites® hotel located in Ontario, California. The Trust also owned a direct 73.61% interest in one InnSuites® hotel located in Yuma, Arizona and owned a direct 50.82% interest in one InnSuites® hotel located in Albuquerque, New Mexico. | |
The Trust directly manages the Hotels through the Trust’s wholly-owned subsidiary, InnSuites Hotels. Under the management agreements, InnSuites Hotels manages the daily operations of the Hotels and the three hotels owned by affiliates of Mr. Wirth. Revenues and reimbursements among the Trust, InnSuites Hotels and the Partnership have been eliminated in consolidation. The management fees for the Hotels and the three hotels owned by affiliates of Mr. Wirth are set at 2.5% of room revenue and a monthly accounting fee of $2,000 per hotel. These agreements have no expiration date and may be cancelled by either party with 90-days written notice or 30-days written notice in the event the property changes ownership. | |
On July 23, 2013, the Trust entered into a Corporate Card Agreement (“Corporate Purchase Cards”) with American Express Travel Related Services Company, Inc. The Corporate Card Agreement distributed a total of nine purchase cards - one to each of the five respective Hotels, one to the Trust, and one to each of the three respective hotels owned by affiliates of James F. Wirth. The Corporate Purchase Cards, with a total limit of $300,000, includes insignificant annual fees and $0 of interest per annum. Payments are due monthly. The Corporate Card Agreement may be cancelled by either party with 30-days written notice. Pamela J. Barnhill, the Trust’s President and Vice Chairperson and daughter of Mr. Wirth, initiated the nine purchase cards. As of January 31, 2015 and 2014, the Trust’s portion of the Corporate Purchase Cards balance was approximately $157,000 and $139,000, respectively. | |
The Tucson Oracle property has an unsecured demand/revolving line of credit/promissory note as described in Note 12 – Line of Credit - Related Party. | |
The Trust has an unsecured demand/revolving line of credit/promissory note as described in Note 12 – Line of Credit - Related Party. | |
As of January 31, 2015, Mr. Wirth purchased a total of 8 Class C units in the Albuquerque entity at $10,000 per unit. Mr. Wirth was paid $1,298 in discretionary priority returns for the fiscal year ended January 31, 2015 related to these units. | |
As of January 31, 2015, the Trust paid Berg Investment Advisors $12,900 for additional consultative services rendered by Mr. Mark Berg, the Trust’s Executive Vice President. | |
On September 25, 2013, the Trust entered into a revenue sharing agreement with independent Lodging Industry Association (“ILIA”). In 2014, the Trust President, Ms. Pamela Barnhill became President of ILIA. The revenue sharing agreement states that of the 10% IBC fees collected from ILIA hotels, 3% will be remitted back to ILIA from February, 2015 through June, 2015, 2% will be remitted back to ILIA from July, 2015 through December, 2015, and 1% will be remitted back to ILIA from January, 2016 through June, 2016. As of January 31, 2015 no fees have been remitted or accrued related to the ILIA revenue sharing agreement. | |
The Trust charges management fees to related parties. The total revenues recorded related to the management fees was $278,210 and $194,605 for the year ended January 31, 2015 and 2014. |
Note_18_Fair_Value_of_Financia
Note 18 - Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Fair Value Disclosures [Text Block] | 18. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
The carrying amount of the | |||||||||||||||||
Tucson St. Mary’s Hotels’ mortgage note payable a | |||||||||||||||||
pproximates fair value because the interest rates is primarily variable and, accordingly, approximates current market rates for instruments with similar risk and maturities. T | |||||||||||||||||
he fair value of remaining notes payable and long-term debt was estimated based on the borrowing rates currently available to the Trust for bank loans with similar terms and maturities. | |||||||||||||||||
The following table presents the estimated fair values of the Trust’s debt instruments and the associated carrying value recognized in the accompanying consolidated balance sheets at January 31, 2015 and 2014: | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
CARRYING AMOUNT | FAIR VALUE | CARRYING AMOUNT | FAIR VALUE | ||||||||||||||
Mortgage notes payable | $ | 19,121,736 | $ | 19,151,309 | $ | 18,746,571 | $ | 18,642,765 | |||||||||
Notes payable to banks | $ | 1,226,626 | $ | 1,226,626 | $ | 1,018,925 | $ | 1,018,925 | |||||||||
Other notes payable | $ | 525,670 | $ | 432,916 | $ | 187,567 | $ | 181,454 |
Note_19_Supplemental_Cash_Flow
Note 19 - Supplemental Cash Flow Disclosures | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Cash Flow, Supplemental Disclosures [Text Block] | 19. SUPPLEMENTAL CASH FLOW DISCLOSURES | ||||||||
2015 | 2014 | ||||||||
Cash paid for interest | $ | 880,069 | $ | 754,919 | |||||
Promissory notes issued by the Trust to acquire Shares of Beneficial Interest | $ | 27,000 | $ | 29,360 | |||||
Shares of Beneficial Interest Issued for Services Rendered (Non-Cash) | $ | 36,666 | $ | 30,960 | |||||
Refinance of the Ontario property mortgage | $ | 5,700,000 | $ | - | |||||
Refinance of the Tucson Oracle property mortgage, net | $ | 1,000,000 | $ | - | |||||
Purchase of Tucson Oracle land | $ | 2,500,000 | $ | - |
Note_20_Commitments_and_Contin
Note 20 - Commitments and Contingencies | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Notes to Financial Statements | |||||
Commitments and Contingencies Disclosure [Text Block] | 20. COMMITMENTS AND CONTINGENCIES | ||||
Leases: | |||||
The Albuquerque Hotel is subject to non-cancelable ground lease. The Albuquerque Hotel non-cancelable ground lease was extended on January 14, 2014 and expires in 2058. Total expense associated with the non-cancelable ground lease for the fiscal years ended January 31, 2015 and 2014 was $229,665 and $212,236, respectively, plus a variable component based on gross revenues of each property that totaled approximately $72,000 and $88,000, respectively. | |||||
During 2010, the Trust entered into a five-year office lease for its corporate headquarters. On April 30, 2014, the lease was extended for 36 months and expires in 2017. The Trust recorded $32,697 and $45,021 of general and administrative expense related to the lease during fiscal years 2015 and 2014, respectively. The lease included a base rent charge of $31,994 for the first lease year beginning in fiscal year 2014, with annual increases to a final year base rent of $34,120 for lease year ending in fiscal year 2017. The | |||||
Trust has the option to cancel the lease after each lease year for penalties of four months’ rent after the first year with the penalty decreasing by one month’s rent each successive lease year. It is the Trust’s intention to remain in the office for the duration of the lease period, as extended. | |||||
Future minimum lease payments under these non-cancelable ground lease and office lease are as follows: | |||||
Fiscal Year Ending | |||||
2016 | $ | 143,359 | |||
2017 | 144,335 | ||||
2018 | 127,725 | ||||
2019 | 113,508 | ||||
2020 | 113,508 | ||||
Thereafter | 5,813,837 | ||||
Total | $ | 6,456,272 | |||
Restricted Cash: | |||||
The Trust is obligated under a loan agreement relating to the Tucson Oracle property to deposit 4% of the individual hotel’s room revenue into an escrow account to be used for capital expenditures. The escrow funds applicable to the Tucson Oracle property for which a mortgage lender escrow exists is reported on the Trust’s Consolidated Balance Sheet as “Restricted Cash.” | |||||
Membership Agreements: | |||||
InnSuites Hotels has entered into membership agreements with Best Western International, Inc. (“Best Western”) for four of the hotel properties. In exchange for use of the Best Western name, trademark and reservation system, the participating Hotels pay fees to Best Western based on reservations received through the use of the Best Western reservation system and the number of available suites at the participating Hotels. The agreements with Best Western have no specific expiration terms and may be cancelled by either party. Best Western requires that the participating hotels meet certain requirements for room quality, and the Hotels are subject to removal from its reservation system if these requirements are not met. The Hotels with third-party membership agreements received significant reservations through the Best Western reservation system. Under these arrangements, fees paid for membership fees and reservations were approximately $342,000 and $310,000 for fiscal years 2015 and 2014, respectively. | |||||
The nature of the operations of the Hotels exposes them to risks of claims and litigation in the normal course of their business. Although the outcome of these matters cannot be determined and is covered by insurance, management does not expect that the ultimate resolution of these matters will have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Trust. | |||||
The Trust is involved from time to time in various other claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Trust’s consolidated financial position, results of operations or liquidity. |
Note_21_ShareBased_Payments
Note 21 - Share-Based Payments | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 21. SHARE-BASED PAYMENTS |
During fiscal year 1999, the shareholders of the Trust adopted the 1997 Stock Incentive and Option Plan (the “Plan”). Pursuant to the Plan, the Compensation Committee may grant options to the Trustees, officers, other key employees, consultants, advisors and similar employees of the Trust and certain of its subsidiaries and affiliates. The number of options that may be granted in a year is limited to 10% of the total Shares of Beneficial Interest and Partnership units in the Partnership (Class A and Class B) outstanding as of the first day of such year. | |
Generally, granted options expire 10 years from the date of grant, are exercisable during the optionee’s lifetime only by the recipient and are non-transferable. Unexercised options held by employees of the Trust generally terminate on the date the individual ceases to be an employee of the Trust. | |
There were no options granted in fiscal year 2015 or 2014, and no options were outstanding as of January 31, 2015 and 2014. The Plan currently has 1,000,000 options available to grant. See Note 23 for stock options granted subsequent to January 31, 2015. The Plan also permits the Trust to award stock appreciation rights, none of which, as of January 31, 2015, have been issued. | |
See Note 2 – "Summary of Significant Accounting Policies" for information related to grants of restricted shares. |
Note_22_Segment_Reporting
Note 22 - Segment Reporting | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Segment Reporting Disclosure [Text Block] | 22. SEGMENT REPORTING | ||||||||||||
In the fourth quarter of 2014, the Trust determined its reportable segments are the Hotel Operations and IBC Developments segments. Reportable segments are determined based on discrete financial information reviewed by the Company’s CODM. The Trust organizes and reviews operations based on products and services, and currently there are no operating segments that are aggregated. The Company performs an annual analysis of its reportable segments. | |||||||||||||
Information relative to the Trust’s reportable segments is as follows: | |||||||||||||
BALANCE SHEET | 31-Jan-15 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Assets | $ | 27,020,056 | $ | 7,753 | $ | 27,027,809 | |||||||
Total Liabilities | 24,046,878 | 15,704 | 24,062,582 | ||||||||||
Fixed Assets, Net | 25,891,083 | 3,455 | 25,894,538 | ||||||||||
STATEMENT OF OPERATIONS | YEAR ENDED JANUARY 31, 2015 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Revenue | $ | 14,652,606 | $ | 20,266 | $ | 14,672,872 | |||||||
Loss From Operations | (845,336 | ) | (326,039 | ) | (1,171,375 | ) | |||||||
Depreciation | (1,781,024 | ) | (1,397 | ) | (1,782,421 | ) | |||||||
Interest Income | 9,168 | - | 9,168 | ||||||||||
Interest Expense | (880,069 | ) | - | (880,069 | ) | ||||||||
Income Tax Expense | (198,648 | ) | - | (198,648 | ) | ||||||||
BALANCE SHEET | 31-Jan-14 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Assets | $ | 25,408,135 | $ | 368 | $ | 25,408,503 | |||||||
Total Liabilities | 22,506,091 | - | 22,506,091 | ||||||||||
Fixed Assets, Net | 23,762,063 | - | 23,762,063 | ||||||||||
STATEMENT OF OPERATIONS | YEAR ENDED JANUARY 31, 2014 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Revenue | $ | 14,883,881 | $ | 761 | $ | 14,884,642 | |||||||
Income (Loss) From Operations | 41,793 | (28,905 | ) | 12,888 | |||||||||
Depreciation | (1,783,595 | ) | - | (1,783,595 | ) | ||||||||
Interest Income | 5,610 | - | 5,610 | ||||||||||
Interest Expense | (822,581 | ) | - | (822,581 | ) | ||||||||
Income Tax Expense | (37,148 | ) | - | (37,148 | ) |
Note_23_Subsequent_Events
Note 23 - Subsequent Events | 12 Months Ended |
Jan. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 23. SUBSEQUENT EVENTS |
Effective February 5, 2015, the Board of Trustees of the Trust adopted the 2015 Equity Incentive Plan, subject to shareholders approval, under which, up to 1,600,000 Shares of Beneficial Interest of the Trust are authorized to be issued pursuant to grant of stock options, stock appreciation rights, restricted shares, restricted share units or other awards. The purpose of the 2015 Plan is to promote the interests of the Trust and its shareholders by providing certain employees and members of the Board of Trustees, who are largely responsible for the management and growth of the subsidiary of the Trust, IBC Hotels, LLC, with incentives and rewards to encourage them to continue in the service of the Trust. | |
On February 5, 2015, the Board of Trustees of the Trust granted to Pamela Barnhill, President, Vice Chairperson of the Board of Trustees and Chief Operating Officer of the Trust and IBC Hotels Founder and President, pursuant to the Trust’s 2015 Equity Incentive Plan, a four-year option for the purchase of 1,000,000 Shares of Beneficial Interest of the Trust at an exercise price of $3.50 per share, exercisable to the extent of vesting of the stock options and GAAP pre-tax profits of IBC Hotels, LLC which must be greater than or equal to performance objectives described in the stock option agreement. The option is subject to shareholders’ approval of the 2015 plan. | |
On April 24, 2015, the Board of Trustees of the Trust granted to James Wirth, Chairman of the Board of Trustees and CEO of the Trust, Marc Berg, Executive Vice President and Trustee and Adam Remis, Chief Financial Officer of the Trust, pursuant to the Trust’s 2015 Equity Incentive Plan and the Trust’s 2015 Stock Option Form Agreement filed as Exhibit 10.42, each a four-year option for the purchase of 60,000 Shares of Beneficial Interest of the Trust at an exercise price of $3.50 per share, exercisable to the extent of vesting of the stock options and GAAP pre-tax profits of IBC Hotels, LLC which must be greater than or equal to performance objectives described in the stock option agreement. The option is subject to shareholders’ approval of the 2015 plan. | |
On April 24, 2015, the Trust and Partnership entered into a restructuring agreement with Partnership to allow for the sale of non-controlling interest units in Tucson Saint Mary’s Suite Hospitality LLC for $10,000 per unit, which operates one of the Tucson, Arizona hotel properties, then wholly-owned by the Partnership. Under the agreement, the Partnership agreed to either purchase or bring in other investors to purchase up to 350 units, which represents approximately 50.07% of the outstanding partnership units in the Tucson, Arizona entity, on a post-transaction basis, and the parties agreed to restructure the limited liability agreement of the Tucson, Arizona entity. The Board of Trustees approved this restructuring on April 24, 2015. Under the restructured limited liability agreement, the Partnership was confirmed as the Administrative Member of the Tucson, Arizona entity but Rare Earth Financial, LLC could be elected in the future as Administrative Member without the Partnership voting on the board resolution. All Membership Interests will be entitled to receive priority distributions annually of $700 per $10,000 Interest from May 15, 2015 through April 20, 2020, Priority distributions will be paid first to Class A Interests, second to Class B Interests and will be cumulative. After April 30, 2020, all Membership Interests will be entitled to annual distributions of $700 per $10,000 Interest, which will be cumulative. The holders of Class A units may convert all of part of their investment at any time up to January 31, 2018 into 2,857 IHT Shares of Beneficial Interest for each $10,000 interest subject to IHT Shareholder approval and other required approvals. Thereafter each $10,000 interest is convertible into 2,500 IHT Shares of Beneficial Interest. | |
On April 24, 2015, the Board of Trustees of the Trust agreed with Suite Hotels, LLC, an affiliate of James Wirth, Chairman of the Board of Trustees and CEO of the Trust, to terminate the agreement to have the Trust purchase 51% of the partnership interests of Fort Worth / Dallas Suite Hospitality Partnership which operates Hotel Trinity. The original intent of the Trust to purchase 51% of Hotel Trinity was to increase IHT’s equity in compliance with the NYSE MKT requirements but over time, the benefits decreased because of Hotel Trinity’s non-cash depreciation and the decreased book value of the property. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
The Trust’s operations are affected by numerous factors, including the economy, competition in the hotel industry and the effect of the economy on the travel and hospitality industries. The Trust cannot predict if any of the above items will have a significant impact in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Trust’s operations and cash flows. Significant estimates and assumptions made by management include, but are not limited to, the estimated useful lives of long-lived assets and estimates of future cash flows used to test a long-lived asset for recoverability and the fair values of the long-lived assets. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | PROPERTY, PLANT AND EQUIPMENT AND HOTEL PROPERTIES | ||||||||||||||||
Furniture, fixtures, building improvements and hotel properties are stated at cost and are depreciated using the straight-line method over estimated lives ranging up to 40 years for buildings and 3 to 10 years for furniture and equipment. | |||||||||||||||||
Management applies guidance issued by the Financial Accounting Standards Board ("FASB"), codified in Accounting Standards Codification Topic 360-10-35 (“ASC 360-10-35”), to determine when it is required to test an asset for recoverability of its carrying value and whether an impairment exists. Under ASC 360-10-35, the Trust is required to test a long-lived asset for impairment when there is an indicator of impairment. Impairment indicators may include, but are not limited to, a drop in the performance of a long-lived asset, a decline in the hospitality industry or a decline in the economy. If an indicator of potential impairment is present, then an assessment is performed of whether the carrying amount of an asset exceeds its estimated undiscounted future cash flows over its estimated remaining life. | |||||||||||||||||
If the estimated undiscounted future cash flows over the asset’s estimated remaining life are greater than the asset’s carrying value, no impairment is recognized; however, if the carrying value of the asset exceeds the estimated undiscounted future cash flows, then the Trust would recognize an impairment expense to the extent the asset’s carrying value exceeds its fair value, if any. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. Long-lived assets evaluated for impairment are analyzed on a property-specific basis independent of the cash flows of other groups of assets. Evaluation of future cash flows is based on historical experience and other factors, including certain economic conditions and committed future bookings. Management has determined that no impairment of long-lived assets exists during the Trust’s fiscal years ending January 31, 2015 and 2014. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH AND CASH EQUIVALENTS | ||||||||||||||||
The Trust considers all highly liquid short-term investments with maturities of three months or less at the time of purchase to be cash equivalents. The Trust believes it places its cash and cash equivalents only with high credit quality financial institutions, although these balances may periodically exceed federally insured limits. | |||||||||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | RESTRICTED CASH | ||||||||||||||||
Restricted cash consists of amounts held in reserve by lenders to fund capital improvements to the properties. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | REVENUE RECOGNITION | ||||||||||||||||
Staff Accounting Bulletin (“SAB”) No. 104, “Revenue Recognition” summarizes the SEC’s views in applying generally accepted accounting principles to revenue recognition in financial statements. SAB No. 104 establishes the SEC’s view that it is not appropriate to recognize revenue until all of the following criteria are met: persuasive evidence that an arrangement exists; delivery has occurred or services have been rendered; the seller’s price to the buyer is fixed or determinable; and collectability is reasonably assured. Further, SAB No. 104 requires that both title and the risks and rewards of ownership be transferred to the buyer before revenue can be recognized. We believe that our revenue recognition policies as described below are in compliance with SAB No. 104. | |||||||||||||||||
Revenues are primarily derived from the following sources and are recognized as services are rendered and when collectability is reasonably assured. Amounts received in advance of revenue recognition are considered deferred liabilities. | |||||||||||||||||
Revenues primarily consist of room rentals, food and beverage sales, management and trademark fees and other miscellaneous revenues from our properties. Revenues are recorded when rooms are occupied and when food and beverage sales are delivered. Management and trademark fees from hotels include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels and the three hotels owned by affiliates of Mr. Wirth. IBC Development revenues are recognized after services are rendered by the IBC member hotel. | |||||||||||||||||
We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. | |||||||||||||||||
Based on our policy, we believe that persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and the collectability of our revenues are reasonably assured. | |||||||||||||||||
Receivables, Policy [Policy Text Block] | ACCOUNTS RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | ||||||||||||||||
Accounts receivable are carried at original amounts billed less an estimate made for doubtful accounts based on a review of outstanding amounts on a quarterly basis. Management generally records an allowance for doubtful accounts for 50% of balances over 90 days and 100% of balances over 120 days. Accounts receivable are written off when collection efforts have been exhausted and they are deemed uncollectible. Recoveries, if any, of receivables previously written off are recorded when received. The Trust does not charge interest on accounts receivable balances and these receivables are unsecured. | |||||||||||||||||
Fiscal Year | Balance at the Beginning of Year | Charged to Expense | Deductions | Balance at the End of Year | |||||||||||||
2014 | $ | 34,415 | $ | 5,061 | $ | (15,883 | ) | $ | 23,593 | ||||||||
2015 | $ | 23,593 | $ | 112,332 | $ | (96,880 | ) | $ | 39,045 | ||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | STOCK-BASED COMPENSATION | ||||||||||||||||
We have an employee equity incentive plan, which is described more fully in Note 21 - “Share-Based Payments.” For fiscal year 2015 and 2014, the Trust has paid the annual fees due to its Trustees by issuing Shares of Beneficial Interest out of its authorized but unissued Shares of Beneficial Interest. Upon issuance, the Trust recognizes the shares as outstanding. The Trust recognizes expense related to the issuance based on the fair value of the shares upon the date of the restricted share grant and amortizes the expense equally over the period during which the shares vest to the Trustees. | |||||||||||||||||
During fiscal year 2015, the Trust granted restricted stock awards of 23,100 Shares to members of the Board of Trustees, all of which vested in fiscal year 2015 resulting in stock-based compensation of $36,666. During fiscal year 2014, the Trust granted restricted stock awards of 18,000 Shares to members of the Board of Trustees, all of which vested in fiscal year 2014 resulting in stock-based compensation of $30,960. | |||||||||||||||||
The following table summarizes restricted share activity during fiscal years 2015 and 2014. | |||||||||||||||||
Restricted Shares | |||||||||||||||||
Shares | Weighted-Average Per Share Grant Date Fair Value | ||||||||||||||||
Balance at January 31, 2013 | - | - | |||||||||||||||
Granted | 18,000 | $ | 1.72 | ||||||||||||||
Vested | (18,000 | ) | $ | 1.72 | |||||||||||||
Forfeited | - | — | |||||||||||||||
Balance of unvested awards at January 31, 2014 | - | $ | - | ||||||||||||||
Granted | 23,100 | $ | 1.59 | ||||||||||||||
Vested | (23,100 | ) | $ | 1.59 | |||||||||||||
Forfeited | - | - | |||||||||||||||
Balance of unvested awards at January 31, 2015 | - | $ | - | ||||||||||||||
Treasury Stock Policy [Policy Text Block] | TREASURY STOCK | ||||||||||||||||
Treasury stock is carried at cost, including any brokerage commissions paid to repurchase the shares. Any shares issued from treasury stock are removed at cost, with the difference between cost and fair value at the time of issuance recorded against shares of Beneficial Interest. | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | INCOME TAXES | ||||||||||||||||
The Trust is subject to federal and state corporate income taxes, and accounts for deferred taxes utilizing an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when it is determined to be more likely than not that some portion, or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||||||||||
Dividends Policy [Policy Text Block] | DIVIDENDS AND DISTRIBUTIONS | ||||||||||||||||
In fiscal years 2015 and 2014, the Trust paid dividends of $0.01 per share in the fourth quarter of each year, or total dividends of $82,665 and $83,449, respectively. The Trust’s ability to pay dividends is largely dependent upon the operations of the Hotels. | |||||||||||||||||
Non-controlling Interest Policy [Policy Text Block] | NON-CONTROLLING INTEREST | ||||||||||||||||
Non-controlling interest in the Trust represents the limited partners’ proportionate share of the capital and earnings of certain of our subsidiary entities. As of January 31, 2015, these non-controlling interests included an approximately 49% interest in an InnSuites hotel located in Tucson, Arizona, an approximately 48% interest in the InnSuites hotel located in Ontario, California, an approximately 49% interest in the InnSuites hotel located in Albuquerque, New Mexico and an approximately 26% interest in the InnSuites hotel located in Yuma, Arizona. Non-controlling interest is also represented by the Class A and Class B Partnership units discussed in Note 1, or an approximately 28% interest in the Partnership as of January 31, 2015. | |||||||||||||||||
Income or loss is allocated to the non-controlling interest based on a weighted average ownership percentage in the entities throughout the period, and capital is allocated based on the ownership percentage at year-end. Any difference between the weighted average and point-in-time allocations is presented as a reallocation of non-controlling interest as a component of shareholders’ equity. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | (LOSS) INCOME PER SHARE | ||||||||||||||||
Basic and diluted (loss) income per Share of Beneficial Interest is computed based on the weighted-average number of Shares of Beneficial Interest and potentially dilutive securities outstanding during the period. Dilutive securities are limited to the Class A and Class B units of the Partnership, which are convertible into 3,684,069 Shares of the Beneficial Interest, as discussed in Note 1. | |||||||||||||||||
For the fiscal years ended January 31, 2015 and 2014, there were Class A and Class B Partnership units outstanding, which are convertible into Shares of Beneficial Interest of the Trust. Assuming conversion at the beginning of each period, the aggregate weighted-average of these Shares of Beneficial Interest would have been 3,684,069 and 3,693,972 in addition to the basic shares outstanding for fiscal years 2015 and 2014, respectively. These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were anti-dilutive during both fiscal year 2015 and 2014 and are excluded from the calculation of diluted earnings per share for those years due to the Trust’s losses, and accordingly, no reconciliation is provided of basic earnings per share to diluted earnings per share. | |||||||||||||||||
Assets Held for Sale [Policy Text Block] | ASSETS HELD FOR SALE | ||||||||||||||||
The Trust considers assets held for sale when management approves and commits to a formal plan to actively market a property or group of properties for sale and a signed sales contract and significant non-refundable deposit or contract break-up fee exists. Upon designation as an asset held for sale, the Trust records the carrying value of each property or group of properties at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we would cease the recognition of depreciation expense. Any gain realized in connection with the sale of a property for which the Trust has significant continued involvement (such as through a long-term management agreement) would be deferred and recognized over the initial term of the related agreement.. | |||||||||||||||||
Segment Reporting, Policy [Policy Text Block] | SEGMENT REPORTING | ||||||||||||||||
During the fourth quarter of 2014 management determined that its operations are comprised of two reportable segments, a Hotel Operating & Corporate segment that has ownership interest in five hotel properties with an aggregate of 843 suites in Arizona, southern California and New Mexico, and the IBC Developments segment serving 6,300 unrelated hotel properties. The Trust has a concentration of assets in the southwest United States, and the southern Arizona market. The Trust has restated the corresponding items of segment information for earlier periods to reflect the change in the IBC Developments review structure. On an overall basis, the Trust has elected to only put the costs directly attributable to the IBC Developments in that segment. Included in these costs are sales, marketing and technology development costs. | |||||||||||||||||
IBC Hotels, LLC (IBC Hotels), a wholly owned subsidiary of InnSuites Hospitality Trust, which has a network of approximately 6,300 properties it provides services to, was formed during the fiscal year ended January 31, 2014. Operating results became significant during the fiscal year ended January 31, 2015. IBC Hotels charges a 10% booking fee which, we believe, increases the independent hotel profits. Competitors of IBC Hotels can charge anywhere from a 30% to 50% booking fee. InnDependent InnCentives, IBC’s loyalty program, allows hoteliers to benefit from guests who frequently stay at IBC independent hotels. We are planning significant expansion of IBC Hotels during the next couple of fiscal years as we concentrate our sales and marketing efforts towards consumers. | |||||||||||||||||
The Chief Operating Decision Maker (“CODM”), the Trust’s CEO, Mr. Wirth | |||||||||||||||||
, | |||||||||||||||||
does not see any value in allocating costs for items not directly attributable to the IBC Developments segment for several reasons. The first is that the Trust’s base business is the Hotel Operations & Corporate segment, and the majority of the expenses of the Trust would continue even if the Trust was not in the reservation business. If the Trust were to allocate general expenses to the reservation business based on some allocation method (e.g. on sales), it would not improve the value of the segment reporting, it would only serve to make the Hotel Operations & Corporate business look better and give investors a false sense of the profitability of the Hotel Operations & Corporate business without the IBC Developments segment. The CODM wants to understand the true investment in the reservation business and that result is delivered by allocating only costs directly associated with the IBC Developments segment. By leaving the remainder of costs not associated with the IBC Developments segment in the Hotel Operations & Corporate segment, the Trust is able to compare the Hotel Operations & Corporate segment to historical figures where the bulk of the business was only that segment of operations to gauge relative efficiency of the Hotel Operations & Corporate operation vs. historical norms. | |||||||||||||||||
The Trust has chosen to focus its hotel investments in the southwest region of the United States. The CODM does not review assets by geographical region, therefore no income statement or balance sheet information by geographical region is provided. | |||||||||||||||||
Advertising Costs, Policy [Policy Text Block] | ADVERTISING COSTS | ||||||||||||||||
Amounts incurred for advertising costs are expensed as incurred. Advertising expense totaled approximately $588,000 and $624,000 for the years ended January 31, 2015 and 2014, respectively. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
For disclosure purposes, fair value is determined by using available market information and appropriate valuation methodologies. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. The fair value framework specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The fair value hierarchy levels are as follows: | |||||||||||||||||
? | Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured; | ||||||||||||||||
? | Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and / or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are level 2 valuation techniques. | ||||||||||||||||
? | Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect a company’s own judgments about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||
The Trust has no assets or liabilities that are carried at fair value on a recurring basis and had no fair value re-measurements during the years ended January 31, 2015 and 2014. The Trust’s financial instruments utilize level 3 inputs in the determination of fair value and consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advances to related parties and debt. | |||||||||||||||||
Due to their short maturities, the carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses approximates fair value. The fair value of mortgage notes payable, notes payable to banks and notes and advances payable to related parties is estimated by using the current rates which would be available for similar loans having the same remaining maturities and are based on level 3 inputs. See Note 18 – “Fair Value of Financial Instruments.” |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Fiscal Year | Balance at the Beginning of Year | Charged to Expense | Deductions | Balance at the End of Year | ||||||||||||
2014 | $ | 34,415 | $ | 5,061 | $ | (15,883 | ) | $ | 23,593 | ||||||||
2015 | $ | 23,593 | $ | 112,332 | $ | (96,880 | ) | $ | 39,045 | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted Shares | ||||||||||||||||
Shares | Weighted-Average Per Share Grant Date Fair Value | ||||||||||||||||
Balance at January 31, 2013 | - | - | |||||||||||||||
Granted | 18,000 | $ | 1.72 | ||||||||||||||
Vested | (18,000 | ) | $ | 1.72 | |||||||||||||
Forfeited | - | — | |||||||||||||||
Balance of unvested awards at January 31, 2014 | - | $ | - | ||||||||||||||
Granted | 23,100 | $ | 1.59 | ||||||||||||||
Vested | (23,100 | ) | $ | 1.59 | |||||||||||||
Forfeited | - | - | |||||||||||||||
Balance of unvested awards at January 31, 2015 | - | $ | - |
Note_7_Property_Plant_and_Equi1
Note 7 - Property, Plant, and Equipment, Hotel Properties (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes Tables | |||||||||
Property, Plant and Equipment [Table Text Block] | 2015 | 2014 | |||||||
Land | $ | 5,534,150 | $ | 3,034,150 | |||||
Building and improvements | 35,050,637 | 34,236,297 | |||||||
Furniture, fixtures and equipment | 5,695,356 | 5,167,117 | |||||||
Total hotel properties | 46,280,143 | 42,437,564 | |||||||
Less accumulated depreciation | (20,466,347 | ) | (18,767,369 | ) | |||||
Hotel Properties in Service, net | 25,813,796 | 23,670,195 | |||||||
Construction in progress | 4,650 | 2,520 | |||||||
Hotel properties, net | $ | 25,818,446 | $ | 23,672,715 | |||||
2015 | 2014 | ||||||||
Land | $ | 7,005 | $ | 7,005 | |||||
Building and improvements | 75,662 | 75,662 | |||||||
Furniture, fixtures and equipment | 388,565 | 380,846 | |||||||
Total property, plant and equipment | 471,232 | 463,513 | |||||||
Less accumulated depreciation | (395,140 | ) | (374,165 | ) | |||||
Property, Plant and Equipment, net | $ | 76,092 | $ | 89,348 |
Note_8_Prepaid_Expenses_and_Ot1
Note 8 - Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes Tables | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | 2015 | 2014 | |||||||
Prepaid Assets | $ | 51,788 | $ | 34,188 | |||||
Tax and Insurance Escrow | 31,208 | 125,353 | |||||||
Deposits | 25,295 | 25,295 | |||||||
Prepaid Insurance | 19,953 | 87,492 | |||||||
Prepaid Workman's Compensation | 21,186 | 53,878 | |||||||
Miscellaneous Prepaid Expenses | 2,569 | 57,853 | |||||||
Total Prepaid Expenses and Current Assets | $ | 151,999 | $ | 384,059 |
Note_9_Accounts_Payable_and_Ac1
Note 9 - Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | 2015 | 2014 | |||||||
Accounts Payable | $ | 1,019,064 | $ | 954,776 | |||||
Accrued Salaries and Wages | 171,040 | 134,222 | |||||||
Accrued Vacation | 24,718 | 13,334 | |||||||
Sales Tax Payable | 156,472 | 341,909 | |||||||
Income Tax Payable | 200,000 | 48,715 | |||||||
Accrued Interest Payable | 52,852 | 52,852 | |||||||
Advanced Customer Deposits | 133,452 | 68,912 | |||||||
Accrued Property Taxes | 213,440 | 250,393 | |||||||
Accrued Land Lease | 34,494 | 95,957 | |||||||
Accrued Other | 641,308 | 260,568 | |||||||
Total Accounts Payable and Accrued Liabilities | $ | 2,646,840 | $ | 2,221,638 |
Note_10_Mortgage_Notes_Payable1
Note 10 - Mortgage Notes Payable (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | 2015 | 2014 | |||||||
Albuquerque property mortgage note payable paid in full at January 31, 2015. | $ | - | $ | 1,126,983 | |||||
Mortgage note payable, due in monthly installments of $36,835, including interest at | 5,580,410 | 5,983,480 | |||||||
4.75% per year, through August 22, 2024, plus a balloon | |||||||||
payment of $3,585,591 in August 2024, secured by the Ontario property with a carrying value of | |||||||||
$5.6 million at January 31, 2015. | |||||||||
Mortgage note payable, due in monthly installments of $26,312, including interest at 4.19% per year, | 3,462,188 | 1,241,111 | |||||||
through November 18, 2029, secured by the Tucson Oracle property with a carrying value of $6.5 | |||||||||
million at January 31, 2015. | |||||||||
Mortgage note payable, due in variable monthly installments ($29,776 as of January 31, 2015) | 4,861,936 | 5,039,946 | |||||||
including interest at the prime rate (3.25% per year as of January 31, 2015), through April 28, | |||||||||
2015, plus a balloon payment of $4,812,244 in April 2015, secured by the Tucson St. Mary's | |||||||||
property with a carrying value of $7.3 million at January 31, 2015. | |||||||||
Mortgage note payable, due in monthly installments of $32,419, including interest at the prime rate | 5,217,202 | 5,355,051 | |||||||
plus one percentage point over the index, with a floor of 5.0% per year (5% per year as of | |||||||||
January 31, 2015), through August 1, 2022 plus a balloon payment of $4,112,498 in September | |||||||||
2022, secured by the Yuma property with a carrying value of $5.1 million at January 31, 2015. | |||||||||
Totals: | $ | 19,121,736 | $ | 18,746,571 |
Note_14_Minimum_Debt_Payments_
Note 14 - Minimum Debt Payments (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Notes Tables | |||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | FISCAL YEAR | MORTGAGES | NOTES PAYABLE TO BANK | LINE OF CREDIT - RELATED PARTY | OTHER NOTES PAYABLE | TOTAL | |||||||||||||||
2016 | $ | 5,333,595 | $ | 1,290,100 | $ | 541,710 | $ | 469,842 | $ | 7,635,247 | |||||||||||
2017 | 494,006 | - | - | 43,710 | 537,716 | ||||||||||||||||
2018 | 518,503 | - | - | 4,768 | 523,271 | ||||||||||||||||
2019 | 544,348 | - | - | 5,113 | 549,461 | ||||||||||||||||
2020 | 570,387 | - | - | 2,237 | 572,624 | ||||||||||||||||
Thereafter | 11,735,824 | - | - | - | 11,735,824 | ||||||||||||||||
$ | 19,196,663 | $ | 1,290,100 | $ | 541,710 | $ | 525,670 | $ | 21,554,143 |
Note_16_Federal_Income_Taxes_T
Note 16 - Federal Income Taxes (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Total and net deferred income tax assets at January 31, | 2015 | 2014 | ||||||
Net operating loss carryforwards | $ | 2,166,000 | $ | 2,914,000 | |||||
Bad debt allowance | (12,000 | ) | (16,000 | ) | |||||
Accrued expenses | 81,000 | 61,000 | |||||||
Syndications | 4,370,000 | 2,770,000 | |||||||
Prepaid insurance | 8,000 | 1,000 | |||||||
Alternative minimum tax credit | 91,000 | 61,000 | |||||||
Total deferred income tax assets | 6,704,000 | 5,791,000 | |||||||
Deferred income tax liability associated with book/tax differences in hotel properties | (2,472,000 | ) | (2,195,000 | ) | |||||
Net deferred income tax asset | 4,232,000 | 3,596,000 | |||||||
Valuation allowance | (4,232,000 | ) | (3,596,000 | ) | |||||
Net deferred income tax asset | $ | - | $ | - | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Federal statutory rates | $ | (694,000 | ) | (34 | %) | |||
State income taxes | (141,000 | ) | (7 | %) | |||||
Change in valuation allowance | 636,000 | 67 | % | ||||||
Effective rate | $ | (199,000 | ) | (10 | %) | ||||
Federal statutory rates | $ | (295,000 | ) | (37 | %) | ||||
State income taxes | (64,000 | ) | (8 | %) | |||||
Change in valuation allowance | 322,000 | 40 | % | ||||||
Effective rate | $ | (37,000 | ) | (5 | %) |
Note_18_Fair_Value_of_Financia1
Note 18 - Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | 2015 | 2014 | |||||||||||||||
CARRYING AMOUNT | FAIR VALUE | CARRYING AMOUNT | FAIR VALUE | ||||||||||||||
Mortgage notes payable | $ | 19,121,736 | $ | 19,151,309 | $ | 18,746,571 | $ | 18,642,765 | |||||||||
Notes payable to banks | $ | 1,226,626 | $ | 1,226,626 | $ | 1,018,925 | $ | 1,018,925 | |||||||||
Other notes payable | $ | 525,670 | $ | 432,916 | $ | 187,567 | $ | 181,454 |
Note_19_Supplemental_Cash_Flow1
Note 19 - Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | 2015 | 2014 | |||||||
Cash paid for interest | $ | 880,069 | $ | 754,919 | |||||
Promissory notes issued by the Trust to acquire Shares of Beneficial Interest | $ | 27,000 | $ | 29,360 | |||||
Shares of Beneficial Interest Issued for Services Rendered (Non-Cash) | $ | 36,666 | $ | 30,960 | |||||
Refinance of the Ontario property mortgage | $ | 5,700,000 | $ | - | |||||
Refinance of the Tucson Oracle property mortgage, net | $ | 1,000,000 | $ | - | |||||
Purchase of Tucson Oracle land | $ | 2,500,000 | $ | - |
Note_20_Commitments_and_Contin1
Note 20 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
Notes Tables | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal Year Ending | ||||
2016 | $ | 143,359 | |||
2017 | 144,335 | ||||
2018 | 127,725 | ||||
2019 | 113,508 | ||||
2020 | 113,508 | ||||
Thereafter | 5,813,837 | ||||
Total | $ | 6,456,272 |
Note_22_Segment_Reporting_Tabl
Note 22 - Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Notes Tables | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | BALANCE SHEET | 31-Jan-15 | |||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Assets | $ | 27,020,056 | $ | 7,753 | $ | 27,027,809 | |||||||
Total Liabilities | 24,046,878 | 15,704 | 24,062,582 | ||||||||||
Fixed Assets, Net | 25,891,083 | 3,455 | 25,894,538 | ||||||||||
STATEMENT OF OPERATIONS | YEAR ENDED JANUARY 31, 2015 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Revenue | $ | 14,652,606 | $ | 20,266 | $ | 14,672,872 | |||||||
Loss From Operations | (845,336 | ) | (326,039 | ) | (1,171,375 | ) | |||||||
Depreciation | (1,781,024 | ) | (1,397 | ) | (1,782,421 | ) | |||||||
Interest Income | 9,168 | - | 9,168 | ||||||||||
Interest Expense | (880,069 | ) | - | (880,069 | ) | ||||||||
Income Tax Expense | (198,648 | ) | - | (198,648 | ) | ||||||||
BALANCE SHEET | 31-Jan-14 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Assets | $ | 25,408,135 | $ | 368 | $ | 25,408,503 | |||||||
Total Liabilities | 22,506,091 | - | 22,506,091 | ||||||||||
Fixed Assets, Net | 23,762,063 | - | 23,762,063 | ||||||||||
STATEMENT OF OPERATIONS | YEAR ENDED JANUARY 31, 2014 | ||||||||||||
Hotel Operations & Corporate Overhead | IBC Developments | Total | |||||||||||
Total Revenue | $ | 14,883,881 | $ | 761 | $ | 14,884,642 | |||||||
Income (Loss) From Operations | 41,793 | (28,905 | ) | 12,888 | |||||||||
Depreciation | (1,783,595 | ) | - | (1,783,595 | ) | ||||||||
Interest Income | 5,610 | - | 5,610 | ||||||||||
Interest Expense | (822,581 | ) | - | (822,581 | ) | ||||||||
Income Tax Expense | (37,148 | ) | - | (37,148 | ) |
Note_1_Nature_of_Operations_an1
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Apr. 24, 2015 | |
Number of Hotels | 5 | ||
Number of Suites | 843 | ||
Number of Shares of Beneficial Interest Received by Limited Partners on if Converted Basis | 3,684,069 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $1,000,000 | ||
Due to Related Parties, Current | 541,710 | 331,390 | |
Related Party Transaction, Rate | 7.00% | ||
Subsequent Event [Member] | |||
Due to Related Parties, Current | 807,000 | ||
Class A Limited Partnership Units [Member] | |||
Units of Partnership Interest, Amount | 276,131 | 286,034 | |
Percentage of Total Partnership Units | 2.09% | 2.17% | |
Class B Limited Partnership Units [Member] | |||
Units of Partnership Interest, Amount | 3,407,938 | ||
Class B Limited Partnership Units [Member] | Chairman and Chief Executive Officer [Member] | |||
Units of Partnership Interest, Amount | 3,407,938 | ||
General Partner Units [Member] | |||
Percentage of Ownership Interest Held by the Trust | 72.11% | 72.04% | |
Units of Partnership Interest, Amount | 9,527,448 | 9,517,545 | |
Hotel Located in Yuma, Arizona [Member] | |||
Percentage of Ownership Interest Held by the Trust | 73.61% | ||
InnSuites Hotel Located in Albuquerque, New Mexico [Member] | |||
Percentage of Ownership Interest Held by the Trust | 50.82% | ||
RRF Limited Partnership [Member] | |||
Percentage of Ownership Interest Held by the Trust | 72.11% | 72.04% | |
The Trust [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 600,000 | ||
Long-term Line of Credit | 125,000 | ||
The Trust [Member] | Subsequent Event [Member] | |||
Long-term Line of Credit | $0 | ||
Weighted Average [Member] | RRF Limited Partnership [Member] | |||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 72.09% | 72.04% | |
IBC Hotels [Member] | |||
Number of Real Estate Properties | 6,300 | 6,300 | |
RRF Limited Partnership [Member] | |||
Percentage of Ownership Interest Held by the Trust | 72.11% | 72.04% | |
RRF Limited Partnership [Member] | Hotel Located in Tucson Arizona 2 [Member] | |||
Percentage of Ownership Held by the Trust and RRF Limited Partnership | 51.01% | ||
RRF Limited Partnership [Member] | Hotel Located in Tucson Arizona 1 [Member] | |||
Percentage of Ownership Held by the Trust and RRF Limited Partnership | 100.00% | ||
RRF Limited Partnership [Member] | InnSuites Hotel Located in Ontario California [Member] | |||
Percentage of Ownership Held by the Trust and RRF Limited Partnership | 51.71% |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Sep. 25, 2013 | |
Asset Impairment Charges | $0 | $0 | |
Common Stock, Dividends, Per Share, Cash Paid | $0.01 | $0.01 | |
Percentage of Balances Over 90 Days | 50.00% | ||
Percentage of Balances Over 120 Days | 100.00% | ||
Dividends, Common Stock, Cash | 82,665 | 83,449 | |
Aggregate Weighted Average Incremental Increase of Shares of Beneficial Interest Assuming Conversion | 3,684,069 | 3,693,972 | |
Number of Operating Segments | 2 | ||
Number of Hotels | 5 | ||
Number of Suites | 843 | ||
Advertising Expense | 588,000 | 624,000 | |
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Furniture and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
IBC Hotels [Member] | |||
Number of Real Estate Properties | 6,300 | 6,300 | |
Booking Fee | 10.00% | 10.00% | |
Other Parties [Member] | InnSuites Hotel Located in Albuquerque, New Mexico [Member] | |||
Percentage of Ownership Interest Held by Unrelated Third Parties | 49.00% | ||
Other Parties [Member] | InnSuites Hotel Located in Ontario California [Member] | |||
Percentage of Ownership Interest Held by Unrelated Third Parties | 48.00% | ||
Other Parties [Member] | Innsuites Hotels Located in Tucson Arizona [Member] | |||
Percentage of Ownership Interest Held by Unrelated Third Parties | 49.00% | ||
Other Parties [Member] | One InnSuites Hotel Located in Yuma Arizona [Member] | |||
Percentage of Ownership Interest Held by Unrelated Third Parties | 26.00% | ||
Other Parties [Member] | RRF Limited Partnership [Member] | |||
Percentage of Ownership Interest Held by Unrelated Third Parties | 28.00% | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 23,100 | 18,000 | |
Allocated Share-based Compensation Expense | $36,666 | $30,960 |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Beginning Balance | $23,593 | $34,415 |
Charged to Expense | 112,332 | 5,061 |
Deductions | -96,880 | -15,883 |
Ending Balance | $39,045 | $23,593 |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies - Restricted Share Activity (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 | |
Restricted Stock [Member] | |||
Balance of unvested awards (in shares) | 0 | 0 | 0 |
Balance of unvested awards (in dollars per share) | $0 | $0 | $0 |
Granted (in shares) | 23,100 | 18,000 | |
Granted (in dollars per share) | $1.59 | $1.72 | |
Vested (in shares) | -23,100 | -18,000 | |
Vested (in dollars per share) | $1.59 | $1.72 |
Note_3_Sale_of_Ownership_Inter1
Note 3 - Sale of Ownership Interests in Albuquerque Subsidiary (Details Textual) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Dec. 09, 2013 | Jul. 22, 2010 | |
Albuquerque Suite Hospitality Properties LLC [Member] | ||||
Sale Price Per Membership Interest Unit | $10,000 | 10,000 | ||
Percentage of Ownership Interest Held by the Trust | 50.82% | 50.86% | ||
Cumulative Priority Distributions Per Unit Per Year | 700 | |||
Additional Amount Paid Per Unit | $43.75 | |||
Per Annum Simple Return | 7.00% | |||
Percentage of Additional Profits Allocated to an Affiliate | 50.00% | |||
Percentage of Profits Allocated Proportionately to All Unit Classes | 50.00% | |||
Estimated Annual Minimum Preference Payments | $195,000 | |||
Albuquerque Suite Hospitality Properties LLC [Member] | Class A Limited Partnership Units [Member] | ||||
Number of Membership Interest Units Sold | 45.5 | 18.5 | ||
Albuquerque Suite Hospitality Properties LLC [Member] | Class B Limited Partnership Units [Member] | ||||
Number of Membership Interest Units Sold | 55.5 | 21 | ||
Number of Partnership Units | 279 | 223.5 | ||
Albuquerque Suite Hospitality Properties LLC [Member] | Class C Limited Partnership Units [Member] | ||||
Number of Membership Interest Units Sold | 8.5 | |||
Mr. Wirth and Affiliates [Member] | Class B Limited Partnership Units [Member] | ||||
Percentage of Ownership Interest Held by Related Parties | 25.80% | |||
Mr. Wirth and Affiliates [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | ||||
Number of Partnership Units | 9 | |||
Percentage of Ownership Interest Held by Related Parties | 1.64% | 0.11% | ||
Mr. Wirth and Affiliates [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | Class C Limited Partnership Units [Member] | ||||
Number of Partnership Units | 0.5 | |||
Rare Earth [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | ||||
Percentage of Membership Interest in a Subsidiary Committed to Purchase by an Affiliate | 49.00% | |||
Number of Partnership Units Available for Sale | 400 | |||
Sale Price Per Membership Interest Unit | $10,000 | $10,000 | ||
Number of Partnership Units Sold Threshold | 150 | |||
Restructuring Costs | 128,000 | |||
Estimated Annual Minimum Preference Payments | 6,000 | |||
Rare Earth [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | If Overallotment Is Exercised [Member] | ||||
Number of Partnership Units Sold Threshold | 190 | |||
Rare Earth [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | Restructuring Fee [Member] | ||||
Number of Partnership Units Sold Threshold | 100 | |||
Minimum [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | ||||
Percentage of Ownership Interest Held by the Trust | 50.10% | |||
Other Parties [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | ||||
Number of Partnership Units | 261 | |||
Percentage of Ownership Interest Held by Unrelated Third Parties | 47.54% | 49.03% | ||
Estimated Annual Minimum Preference Payments | $183,000 | |||
Other Parties [Member] | Albuquerque Suite Hospitality Properties LLC [Member] | Class A Limited Partnership Units [Member] | ||||
Number of Partnership Units | 215.5 |
Note_4_Sale_of_Ownership_Inter1
Note 4 - Sale of Ownership Interests in Tucson Hospitality Properties Subsidiary (Details Textual) (USD $) | 12 Months Ended | ||||
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2013 | Feb. 17, 2011 | Oct. 01, 2013 | |
Tucson Hospitality Properties LP [Member] | |||||
Number of Units of Partnership Interest in a Subsidiary Committed to Purchase by an Affiliate | 250 | ||||
Percentage of Membership Interest in a Subsidiary Committed to Purchase by an Affiliate | 41.00% | ||||
Percentage of Ownership Interest Held by the Trust | 50.10% | ||||
Cumulative Priority Distributions Per Unit Per Year | 700 | ||||
Per Annum Simple Return | 7.00% | ||||
Percentage of Profits Allocated Proportionately to All Unit Classes | 50.00% | ||||
Tucson Hospitality Properties LP [Member] | Class A and B Limited Partnership Units [Member] | |||||
Sale Price Per Membership Interest Unit | 10,000 | 10,000 | |||
Tucson Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | |||||
Number of Membership Interest Units Sold | 9.5 | 108.5 | |||
Tucson Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | |||||
Number of Membership Interest Units Sold | 9 | 54 | |||
Mr. Wirth and Affiliates [Member] | Class B Limited Partnership Units [Member] | |||||
Percentage of Ownership Interest Held by Related Parties | 25.80% | ||||
Mr. Wirth and Affiliates [Member] | Tucson Hospitality Properties LP [Member] | |||||
Percentage of Ownership Interest Held by Related Parties | 1.39% | 1.55% | |||
Mr. Wirth and Affiliates [Member] | Tucson Hospitality Properties LP [Member] | Class C Limited Partnership Units [Member] | |||||
Number of Partnership Units | 11 | 12 | |||
RRF Limited Partnership [Member] | Tucson Hospitality Properties LP [Member] | |||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 51.01% | 51.00% | |||
Estimated Annual Minimum Preference Payments | 283,000 | ||||
RRF Limited Partnership [Member] | Tucson Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | |||||
Number of Membership Interest Units Sold | 1 | ||||
RRF Limited Partnership [Member] | Tucson Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | |||||
Number of Partnership Units | 404 | 395 | |||
Rare Earth [Member] | Tucson Hospitality Properties LP [Member] | |||||
Sale Price Per Membership Interest Unit | $10,000 | ||||
Number of Partnership Units Sold Threshold | 160 | ||||
Percentage of Additional Profits Allocated to an Affiliate | 50.00% | ||||
Restructuring Costs | 128,000 | ||||
Estimated Annual Minimum Preference Payments | 8,000 | ||||
Rare Earth [Member] | Tucson Hospitality Properties LP [Member] | Exercise of Overallotment [Member] | |||||
Number of Partnership Units Sold Threshold | 200 | ||||
Rare Earth [Member] | Tucson Hospitality Properties LP [Member] | Restructuring Fee [Member] | |||||
Number of Partnership Units | 100 | ||||
Other Parties [Member] | Tucson Hospitality Properties LP [Member] | |||||
Percentage of Ownership Interest Held by Unrelated Third Parties | 47.60% | 47.45% | |||
Other Parties [Member] | Tucson Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | |||||
Number of Partnership Units | 377 | 367.5 | |||
Unrelated Unit Holders [Member] | Tucson Hospitality Properties LP [Member] | |||||
Estimated Annual Minimum Preference Payments | 264,000 |
Note_5_Sale_of_Ownership_Inter1
Note 5 - Sale of Ownership Interests in Ontario Hospitality Properties Subsidiary (Details Textual) (USD $) | 12 Months Ended | 10 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2015 | Feb. 29, 2012 | Jan. 31, 2014 | Mar. 01, 2014 | |
Ontario Hospitality Properties LP [Member] | |||||
Sale Price Per Membership Interest Unit | $10,000 | ||||
Number of Units of Partnership Interest in a Subsidiary Committed to Purchase by an Affiliate | 250 | ||||
Percentage of Membership Interest in a Subsidiary Committed to Purchase by an Affiliate | 49.00% | ||||
Number of Partnership Units Sold Threshold | 100 | 100 | |||
Percentage of Ownership Interest Held by the Trust | 50.10% | 50.10% | |||
Cumulative Priority Distributions Per Unit Per Year | 700 | 700 | |||
Per Annum Simple Return | 7.00% | 7.00% | |||
Percentage of Profits Allocated Proportionately to All Unit Classes | 50.00% | 50.00% | |||
Sale Price Per Membership Interest Unit | $10,000 | ||||
Ontario Hospitality Properties LP [Member] | Class A, B, and C Limited Partnership Units [Member] | |||||
Sale Price Per Membership Interest Unit | 10,000 | $10,000 | |||
Sale Price Per Membership Interest Unit | 10,000 | $10,000 | |||
Ontario Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | |||||
Number of Membership Interest Units Sold | 109 | ||||
Ontario Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | |||||
Number of Membership Interest Units Sold | 84 | ||||
Ontario Hospitality Properties LP [Member] | Class C Limited Partnership Units [Member] | |||||
Number of Membership Interest Units Sold | 20 | ||||
Mr. Wirth and Affiliates [Member] | Class B Limited Partnership Units [Member] | |||||
Percentage of Ownership Interest Held by Related Parties | 25.80% | 25.80% | |||
Mr. Wirth and Affiliates [Member] | Ontario Hospitality Properties LP [Member] | |||||
Percentage of Ownership Interest Held by Related Parties | 3.64% | 3.64% | 1.57% | ||
Mr. Wirth and Affiliates [Member] | Ontario Hospitality Properties LP [Member] | Class C Limited Partnership Units [Member] | |||||
Number of Partnership Units | 35 | 35 | 10 | ||
RRF Limited Partnership [Member] | Ontario Hospitality Properties LP [Member] | |||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 51.71% | 51.71% | 61.60% | ||
Estimated Annual Minimum Preference Payments | 349,000 | $349,000 | |||
RRF Limited Partnership [Member] | Ontario Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | |||||
Number of Partnership Units | 498 | 498 | 393 | ||
Rare Earth [Member] | Ontario Hospitality Properties LP [Member] | |||||
Number of Partnership Units Sold Threshold | 235 | ||||
Percentage of Additional Profits Allocated to an Affiliate | 50.00% | 50.00% | |||
Formation Fee Earned by an Affiliate | 128,000 | ||||
Estimated Annual Minimum Preference Payments | 25,000 | 25,000 | |||
Rare Earth [Member] | Ontario Hospitality Properties LP [Member] | If Overallotment Is Exercised [Member] | |||||
Number of Partnership Units Sold Threshold | 275 | ||||
Other Parties [Member] | Ontario Hospitality Properties LP [Member] | |||||
Percentage of Ownership Interest Held by Unrelated Third Parties | 44.65% | 44.65% | 36.83% | ||
Estimated Annual Minimum Preference Payments | 301,000 | $301,000 | |||
Other Parties [Member] | Ontario Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | |||||
Number of Partnership Units | 430 | 430 | 235 |
Note_6_Sale_of_Ownership_Inter1
Note 6 - Sale of Ownership Interests in Yuma Hospitality Properties Subsidiary (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Jan. 31, 2015 | Mar. 31, 2015 | Oct. 24, 2014 | Oct. 23, 2014 | |
Yuma Hospitality Properties LP [Member] | ||||
Sale Price Per Membership Interest Unit | 10,000 | $10,000 | ||
Limited Partners' Capital Account, Units Outstanding | 750 | |||
Number of Membership Units to be Created | 50 | |||
Number of Units of Partnership Interest in a Subsidiary Committed to Purchase by an Affiliate | 398 | |||
Percentage of Membership Interest in a Subsidiary Committed to Purchase by an Affiliate | 49.00% | |||
Cumulative Priority Distributions Per Unit Per Year | 700 | |||
Per Annum Simple Return | 7.00% | |||
Percentage of Profits Allocated Proportionately to All Unit Classes | 50.00% | |||
Number of Partnership Units Sold Threshold | 150 | |||
Percentage of Ownership Interest Held by the Trust | 73.61% | |||
Estimated Annual Minimum Preference Payments | 412,000 | |||
Yuma Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | ||||
Number of Membership Interest Units Sold | 210.1 | |||
Yuma Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | Newly Issued [Member] | ||||
Number of Membership Interest Units Sold | 50 | |||
Yuma Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | Sold from the Trust [Member] | ||||
Number of Membership Interest Units Sold | 160.1 | |||
Yuma Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | ||||
Number of Partnership Units | 588.9 | |||
Mr. Wirth and Affiliates [Member] | Class B Limited Partnership Units [Member] | ||||
Percentage of Ownership Interest Held by Related Parties | 25.80% | |||
Mr. Wirth and Affiliates [Member] | Yuma Hospitality Properties LP [Member] | ||||
Percentage of Ownership Interest Held by Related Parties | 0.13% | |||
Mr. Wirth and Affiliates [Member] | Yuma Hospitality Properties LP [Member] | Class C Limited Partnership Units [Member] | ||||
Number of Partnership Units | 1 | |||
Rare Earth [Member] | Yuma Hospitality Properties LP [Member] | ||||
Payments for Restructuring | 85,000 | |||
Restructuring Reserve | 265,000 | |||
Estimated Annual Minimum Preference Payments | 1,000 | |||
Rare Earth [Member] | Yuma Hospitality Properties LP [Member] | Subsequent Event [Member] | ||||
Payments for Restructuring | 265,000 | |||
Rare Earth [Member] | Yuma Hospitality Properties LP [Member] | ||||
Percentage of Additional Profits Allocated to an Affiliate | 50.00% | |||
Formation Fee Earned by an Affiliate | 350,000 | |||
Other Parties [Member] | Yuma Hospitality Properties LP [Member] | ||||
Percentage of Ownership Interest Held by Unrelated Third Parties | 26.26% | |||
Other Parties [Member] | Yuma Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | ||||
Number of Partnership Units | 210.1 | |||
Unrelated Unit Holders [Member] | Yuma Hospitality Properties LP [Member] | ||||
Estimated Annual Minimum Preference Payments | 147,000 |
Note_7_Property_Plant_and_Equi2
Note 7 - Property, Plant, and Equipment, Hotel Properties (Details Textual) (Hotel Properties [Member], USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Property, Plant and Equipment, Additions | $3,843,000 |
Land [Member] | |
Property, Plant and Equipment, Additions | $2,500,000 |
Note_7_Property_Plant_and_Equi3
Note 7 - Property, Plant, and Equipment, Hotel Properties - Property, Plant and Equipment (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Property, plant and equipment, net | $76,092 | $89,348 |
Excluding Hotel Properties [Member] | ||
Property, plant and equipment, gross | 471,232 | 463,513 |
Less accumulated depreciation | -395,140 | -374,165 |
Property, plant and equipment, net | 76,092 | 89,348 |
Excluding Hotel Properties [Member] | Building and Building Improvements [Member] | ||
Property, plant and equipment, gross | 75,662 | 75,662 |
Excluding Hotel Properties [Member] | Land [Member] | ||
Property, plant and equipment, gross | 7,005 | 7,005 |
Excluding Hotel Properties [Member] | Furniture, Fixtures, and Equipment [Member] | ||
Property, plant and equipment, gross | 388,565 | 380,846 |
Hotel Properties [Member] | ||
Property, plant and equipment, gross | 46,280,143 | 42,437,564 |
Less accumulated depreciation | -20,466,347 | -18,767,369 |
Property, plant and equipment, net | 25,818,446 | 23,672,715 |
Hotel Properties [Member] | Building and Building Improvements [Member] | ||
Property, plant and equipment, gross | 35,050,637 | 34,236,297 |
Hotel Properties [Member] | Construction in Progress [Member] | ||
Property, plant and equipment, net | 4,650 | 2,520 |
Hotel Properties [Member] | Land [Member] | ||
Property, plant and equipment, gross | 5,534,150 | 3,034,150 |
Hotel Properties [Member] | Furniture, Fixtures, and Equipment [Member] | ||
Property, plant and equipment, gross | 5,695,356 | 5,167,117 |
Hotel Properties [Member] | Hotel Properties in Service, Net [Member] | ||
Property, plant and equipment, net | $25,813,796 | $23,670,195 |
Note_8_Prepaid_Expenses_and_Ot2
Note 8 - Prepaid Expenses and Other Current Assets - Prepaid Expenses and Other Current Asset (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Prepaid Assets | $51,788 | $34,188 |
Tax and Insurance Escrow | 31,208 | 125,353 |
Deposits | 25,295 | 25,295 |
Prepaid Insurance | 19,953 | 87,492 |
Prepaid Workman's Compensation | 21,186 | 53,878 |
Miscellaneous Prepaid Expenses | 2,569 | 57,853 |
Total Prepaid Expenses and Current Assets | $151,999 | $384,059 |
Note_9_Accounts_Payable_and_Ac2
Note 9 - Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Accounts Payable | $1,019,064 | $954,776 |
Accrued Salaries and Wages | 171,040 | 134,222 |
Accrued Vacation | 24,718 | 13,334 |
Sales Tax Payable | 156,472 | 341,909 |
Income Tax Payable | 200,000 | 48,715 |
Accrued Interest Payable | 52,852 | 52,852 |
Advanced Customer Deposits | 133,452 | 68,912 |
Accrued Property Taxes | 213,440 | 250,393 |
Accrued Land Lease | 34,494 | 95,957 |
Accrued Other | 641,308 | 260,568 |
Total Accounts Payable and Accrued Liabilities | $2,646,840 | $2,221,638 |
Note_10_Mortgage_Notes_Payable2
Note 10 - Mortgage Notes Payable (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jun. 02, 2014 | Aug. 22, 2014 | Nov. 24, 2014 | Nov. 23, 2014 | |
Secured Debt | 19,121,736 | 18,746,571 | ||||
Weighted Average [Member] | ||||||
Mortgage Loans on Real Estate, Interest Rate | 4.34% | 4.89% | ||||
Secured by Albuquerque Property [Member] | ||||||
Repayments of Debt | 1,099,299 | |||||
Secured Debt | 1,126,983 | |||||
Mortgages [Member] | Ontario Hospitality Properties LP [Member] | ||||||
Debt Instrument, Face Amount | 5,700,000 | |||||
Debt Instrument, Term | 10 years | |||||
Secured Debt | 5,580,000 | |||||
Debt Instrument, Unamortized Discount | 48,000 | |||||
Mortgages [Member] | Ontario Hospitality Properties LP [Member] | First 5 Years [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||||
Mortgages [Member] | Ontario Hospitality Properties LP [Member] | Remained 5 Years [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.75% | |||||
Mortgages [Member] | Ontario Hospitality Properties LP [Member] | Remained 5 Years [Member] | Prime Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Mortgages [Member] | Tucson Hospitality Properties LP [Member] | ||||||
Debt Instrument, Face Amount | 3,500,000 | |||||
Debt Instrument, Term | 15 years | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.19% | 8.00% | ||||
Secured Debt | 3,462,000 | |||||
Debt Instrument, Unamortized Discount | 8,000 | |||||
Tucson Foothills [Member] | ||||||
Operating Leases, Rent Expense | 154,000 | 188,000 |
Note_10_Mortgage_Notes_Payable3
Note 10 - Mortgage Notes Payable - Mortgage Notes Payable (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Mortgage note payable | $19,121,736 | $18,746,571 |
Secured by Albuquerque Property [Member] | ||
Mortgage note payable | 1,126,983 | |
Secured by Ontario Property [Member] | ||
Mortgage note payable | 5,580,410 | 5,983,480 |
Secured by Tucson Foothills Property [Member] | ||
Mortgage note payable | 3,462,188 | 1,241,111 |
Secured by Tucson St. Mary's Property [Member] | ||
Mortgage note payable | 4,861,936 | 5,039,946 |
Secured by Yuma Property [Member] | ||
Mortgage note payable | $5,217,202 | $5,355,051 |
Note_10_Mortgage_Notes_Payable4
Note 10 - Mortgage Notes Payable - Mortgage Notes Payable (Details) (Parentheticals) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Secured by Ontario Property [Member] | ||
Mortgage note payable, monthly payments | $36,835 | $31,701 |
Mortgage note payable, interest rate | 4.75% | 5.00% |
Mortgage note payable, balloon payment | 3,585,591 | 5,630,315 |
Mortgage note payable, carrying value of secured property | 5,600,000 | 5,700,000 |
Secured by Tucson Foothills Property [Member] | ||
Mortgage note payable, monthly payments | 26,312 | 48,738 |
Mortgage note payable, interest rate | 4.19% | 8.00% |
Mortgage note payable, carrying value of secured property | 6,500,000 | 4,000,000 |
Secured by Tucson St. Mary's Property [Member] | ||
Mortgage note payable, monthly payments | 29,776 | 29,776 |
Mortgage note payable, interest rate | 3.25% | 3.25% |
Mortgage note payable, balloon payment | 4,812,244 | 4,874,618 |
Mortgage note payable, carrying value of secured property | 7,300,000 | 7,500,000 |
Secured by Yuma Property [Member] | ||
Mortgage note payable, monthly payments | 32,419 | 32,419 |
Mortgage note payable, interest rate | 5.00% | 5.00% |
Mortgage note payable, balloon payment | 4,112,498 | 4,112,498 |
Mortgage note payable, carrying value of secured property | $5,100,000 | $5,200,000 |
Note_11_Notes_Payable_to_Banks1
Note 11 - Notes Payable to Banks (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||
Oct. 24, 2014 | Aug. 19, 2014 | Jan. 31, 2015 | 21-May-14 | Jul. 24, 2014 | Sep. 16, 2014 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||||
Albuquerque Suite Hospitality Properties LLC [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument, Face Amount | 318,000 | |||||
Loan Processing Fee | 18,000 | |||||
Fee Percentage of Original Principal | 6.00% | |||||
Debt Instrument Collateral Percentage | 14.00% | |||||
Bank Loans | 239,000 | |||||
Debt Instrument, Unamortized Discount | 14,000 | |||||
Ontario Hospitality Properties LP [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument, Face Amount | 477,000 | |||||
Loan Processing Fee | 27,000 | |||||
Fee Percentage of Original Principal | 6.00% | |||||
Debt Instrument Collateral Percentage | 27.00% | |||||
Bank Loans | 175,000 | |||||
Debt Instrument, Unamortized Discount | 15,000 | |||||
The Trust [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 600,000 | |||||
Rate Floor on Revolving Bank Line of Credit | 6.00% | |||||
Line of Credit Facility, Interest Rate at Period End | 6.00% | |||||
Long-term Line of Credit | 125,000 | |||||
The Trust [Member] | Prime Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Tucson Hospitality Properties LP [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument, Face Amount | 447,100 | |||||
Loan Processing Fee | 25,307 | |||||
Fee Percentage of Original Principal | 6.00% | |||||
Debt Instrument Collateral Percentage | 15.00% | |||||
Bank Loans | 201,000 | |||||
Debt Instrument, Unamortized Discount | 8,000 | |||||
Tucson Saint Mary's Suite Hospitality LLC [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument, Face Amount | 451,560 | |||||
Loan Processing Fee | 25,560 | |||||
Fee Percentage of Original Principal | 6.00% | |||||
Debt Instrument Collateral Percentage | 17.00% | |||||
Bank Loans | 267,000 | |||||
Debt Instrument, Unamortized Discount | 13,000 | |||||
Yuma Hospitality Properties Limited Partnership [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument, Face Amount | 415,520 | |||||
Loan Processing Fee | 23,250 | |||||
Fee Percentage of Original Principal | 6.00% | |||||
Debt Instrument Collateral Percentage | 22.00% | |||||
Bank Loans | 219,000 | |||||
Debt Instrument, Unamortized Discount | 15,000 |
Note_12_Line_of_Credit_Related1
Note 12 - Line of Credit - Related Party (Details Textual) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 26, 2014 | Jun. 30, 2014 | |
Line of Credit Facility, Maximum Borrowing Capacity | $1,000,000 | |||
Related Party Transaction, Rate | 7.00% | |||
Interest Expense, Related Party | 43,461 | 10,361 | ||
Interest Income, Related Party | 8,971 | |||
Due to Related Parties, Current | 541,710 | 331,390 | ||
Rare Earth [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||
Related Party Transaction, Rate | 7.00% | |||
Interest Expense, Related Party | 659 | 0 | ||
Tucson Hospitality Properties LP [Member] | Rare Earth [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000,000 | 1,400,000 | 1,000,000 | |
Related Party Transaction, Rate | 7.00% | |||
Interest Expense, Related Party | 42,912 | 10,360 | ||
Interest Income, Related Party | $2,661 | $2,014 |
Note_13_Other_Notes_Payable_De
Note 13 - Other Notes Payable (Details Textual) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Stock Repurchased During Period, Shares | 99,897 | 51,308 |
Beneficial Interest [Member] | ||
Stock Repurchased During Period, Shares | 79,583 | 132,051 |
Class A Limited Partnership Units [Member] | ||
Stock Repurchased During Period, Shares | 83,260 | 145,564 |
Promissory Demand Note [Member] | ||
Notes Payable | 400,000 | |
Secured Promissory Notes [Member] | ||
Notes Payable | 525,670 | 187,567 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% |
Note_14_Minimum_Debt_Payments_1
Note 14 - Minimum Debt Payments - Minimum Payments of Debt (Details) (USD $) | Jan. 31, 2015 |
2016 | $7,635,247 |
2017 | 537,716 |
2018 | 523,271 |
2019 | 549,461 |
2020 | 572,624 |
Thereafter | 11,735,824 |
21,554,143 | |
Line of Credit [Member] | |
2016 | 541,710 |
541,710 | |
Mortgages [Member] | |
2016 | 5,333,595 |
2017 | 494,006 |
2018 | 518,503 |
2019 | 544,348 |
2020 | 570,387 |
Thereafter | 11,735,824 |
19,196,663 | |
Notes Payable, Other Payables [Member] | |
2016 | 469,842 |
2017 | 43,710 |
2018 | 4,768 |
2019 | 5,113 |
2020 | 2,237 |
525,670 | |
Notes Payable to Banks [Member] | |
2016 | 1,290,100 |
$1,290,100 |
Note_15_Description_of_Benefic1
Note 15 - Description of Beneficial Interests (Details Textual) (USD $) | 12 Months Ended | ||||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2010 | Sep. 15, 2009 | Jan. 05, 2009 | Sep. 10, 2007 | Jan. 02, 2001 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 350,000 | 250,000 | 300,000 | 350,000 | 250,000 | ||
Stock Repurchased During Period, Shares | 99,897 | 51,308 | |||||
Treasury Stock Acquired, Average Cost Per Share | $2.20 | $1.86 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 127,919 |
Note_16_Federal_Income_Taxes_D
Note 16 - Federal Income Taxes (Details Textual) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $0 | $0 |
Operating Loss Carryforwards | $6.50 |
Note_16_Federal_Income_Taxes_D1
Note 16 - Federal Income Taxes - Deferred Tax Assets (Liabilities) (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Net operating loss carryforwards | $2,166,000 | $2,914,000 |
Bad debt allowance | -12,000 | -16,000 |
Accrued expenses | 81,000 | 61,000 |
Syndications | 4,370,000 | 2,770,000 |
Prepaid insurance | 8,000 | 1,000 |
Alternative minimum tax credit | 91,000 | 61,000 |
Total deferred income tax assets | 6,704,000 | 5,791,000 |
Deferred income tax liability associated with book/tax differences in hotel properties | -2,472,000 | -2,195,000 |
Net deferred income tax asset | 4,232,000 | 3,596,000 |
Valuation allowance | -4,232,000 | -3,596,000 |
Net deferred income tax asset | $0 | $0 |
Note_16_Federal_Income_Taxes_D2
Note 16 - Federal Income Taxes - Differences Between Statutory and Effective Tax Rates (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Federal statutory rates | ($694,000) | ($295,000) |
Federal statutory rates | -34.00% | -37.00% |
State income taxes | -141,000 | -64,000 |
State income taxes | -7.00% | -8.00% |
Change in valuation allowance | 636,000 | 322,000 |
Change in valuation allowance | 67.00% | 40.00% |
Effective rate | ($198,648) | ($37,148) |
Effective rate | -10.00% | -5.00% |
Note_17_Other_Related_Party_Tr1
Note 17 - Other Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jul. 23, 2013 | Sep. 25, 2013 | |
Percentage of Room Revenue Received from Hotels Owned by Affiliates | 2.50% | |||
Related Party, Monthly Accounting Fee | $2,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||
Management Fees Revenue | 278,210 | 194,605 | ||
Another Inn Suites Hotel Located in Tucson Arizona [Member] | ||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 51.01% | |||
InnSuites Hotel Located in Ontario California [Member] | ||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 51.71% | |||
Innsuites Hotels Located in Tucson Arizona [Member] | ||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 100.00% | |||
Mr. Wirth and Affiliates [Member] | ||||
Number of Class B Limited Partnership Units Held by Related Party | 3,407,938 | |||
Mr. Wirth and Affiliates [Member] | Class B Limited Partnership Units [Member] | ||||
Percentage of Ownership Interest Held by Related Parties | 25.80% | |||
One InnSuites Hotel Located in Albuquerque New Mexico [Member] | ||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 50.82% | |||
One InnSuites Hotel Located in Yuma Arizona [Member] | ||||
Percentage of Ownership Interest Held by RRF Limited Partnership | 73.61% | |||
Consultative Services [Member] | Executive Vice President [Member] | ||||
Related Party Transaction, Amounts of Transaction | 12,900 | |||
Albuquerque Suite Hospitality Properties LLC [Member] | Mr. Wirth and Affiliates [Member] | ||||
Number of Membership Interest Units Sold | 8 | |||
Sale Price Per Membership Interest Unit | $10,000 | |||
Cash Paid for Discretionary Priority Returns | 1,298 | |||
IBC Hotels [Member] | ||||
Booking Fee | 10.00% | 10.00% | ||
IBC Hotels [Member] | Independent Lodging Industry Association [Member] | Remitted Fees from February, 2015 through June, 2015 [Member] | Revenue Sharing Agreement [Member] | ||||
Percentage of Booking Fee Remitted Back | 3.00% | |||
IBC Hotels [Member] | Independent Lodging Industry Association [Member] | Remitted Fees from January, 2016 through June, 2016 [Member] | Revenue Sharing Agreement [Member] | ||||
Percentage of Booking Fee Remitted Back | 1.00% | |||
IBC Hotels [Member] | Independent Lodging Industry Association [Member] | Remitted Fees from July, 2015 through December, 2015 [Member] | Revenue Sharing Agreement [Member] | ||||
Percentage of Booking Fee Remitted Back | 2.00% | |||
RRF Limited Partnership [Member] | ||||
Percentage of Ownership Interest Held by the Trust | 72.11% | 72.04% | ||
RRF Limited Partnership [Member] | Mr. Wirth and Affiliates [Member] | ||||
Percentage of Ownership Interest Held by Related Parties | 73.20% | 72.60% | ||
Number of Shares of Beneficial Interest Held by Related Party | 6,053,276 | 6,055,376 | ||
Corporate Purchase Cards [Member] | Guaranteed by Related Party [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | |||
Line of Credit Facility, Periodic Payment, Interest | 0 | |||
Letters of Credit Outstanding, Amount | $157,000 | $139,000 |
Note_18_Fair_Value_of_Financia2
Note 18 - Fair Value of Financial Instruments - Estimated Fair Values of Debt Instruments (Details) (USD $) | Jan. 31, 2015 | Jan. 31, 2014 |
Mortgage note payable | $19,121,736 | $18,746,571 |
Mortgage notes payable | 19,151,309 | 18,642,765 |
Notes payable to banks | 1,226,626 | 1,018,925 |
Notes payable to banks | 1,226,626 | 1,018,925 |
Other notes payable | 525,670 | 187,567 |
Other notes payable | $432,916 | $181,454 |
Note_19_Supplemental_Cash_Flow2
Note 19 - Supplemental Cash Flow Disclosures - Supplemental Cash Flow Disclosures (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Cash paid for interest | $880,069 | $754,919 |
Shares of Beneficial Interest Issued for Services Rendered (Non-Cash) | 36,666 | 30,960 |
Beneficial Interest [Member] | ||
Promissory notes issued by the Trust to acquire Shares of Beneficial Interest | 27,000 | 29,360 |
Land [Member] | ||
Purchase of Tucson Oracle land | 2,500,000 | |
Mortgages [Member] | Ontario Hospitality Properties LP [Member] | ||
Refinance of mortgage | 5,700,000 | |
Mortgages [Member] | Tucson Hospitality Properties LP [Member] | ||
Refinance of mortgage | $1,000,000 |
Note_20_Commitments_and_Contin2
Note 20 - Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | |
Percentage of Revenue Deposited Into Escrow Account for Capital Expenditures | 4.00% | |||
Payments for Fees | $342,000 | $310,000 | ||
Final Lease Year [Member] | ||||
Operating Leases, Rent Expense, Minimum Rentals | 34,120 | |||
First Lease Year [Member] | ||||
Operating Leases, Rent Expense, Minimum Rentals | 31,994 | |||
Headquarters [Member] | ||||
Operating Leases, Rent Expense | 32,697 | 45,021 | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years | |||
Tucson Foothills and Albuquerque Hotels [Member] | ||||
Operating Leases, Rent Expense | 229,665 | 212,236 | ||
Operating Leases, Rent Expense, Contingent Rentals | $72,000 | $88,000 |
Note_20_Commitments_and_Contin3
Note 20 - Commitments and Contingencies - Future Minimum Lease Payments (Details) (USD $) | Jan. 31, 2015 |
2016 | $143,359 |
2017 | 144,335 |
2018 | 127,725 |
2019 | 113,508 |
2020 | 113,508 |
Thereafter | 5,813,837 |
Total | $6,456,272 |
Note_21_ShareBased_Payments_De
Note 21 - Share-Based Payments (Details Textual) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 |
Percent of Total Shares of Beneficial Interest and Limited Partnership Units | 10.00% | |
Stock Option Expiration Term | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 |
Note_22_Segment_Reporting_Info
Note 22 - Segment Reporting - Information Relative to the Trust's Reportable Segments (Details) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Total Assets | $27,027,809 | $25,408,503 |
Total Liabilities | 24,062,582 | 22,506,091 |
Property, plant and equipment, net | 76,092 | 89,348 |
Total Revenue | 14,672,872 | 14,884,642 |
Income (Loss) From Operations | -1,171,375 | 12,888 |
Depreciation | -1,782,421 | -1,783,595 |
Interest Income | 9,168 | 5,610 |
Interest Expense | -880,069 | -822,581 |
Income Tax Expense | -198,648 | -37,148 |
Hotel Operations and Corporate Overhead [Member] | ||
Total Assets | 27,020,056 | 25,408,135 |
Total Liabilities | 24,046,878 | 22,506,091 |
Total Revenue | 14,652,606 | 14,883,881 |
Income (Loss) From Operations | -845,336 | 41,793 |
Depreciation | -1,781,024 | -1,783,595 |
Interest Income | 9,168 | 5,610 |
Interest Expense | -880,069 | -822,581 |
Income Tax Expense | -198,648 | -37,148 |
IBC Developments [Member] | ||
Total Assets | 7,753 | 368 |
Total Liabilities | 15,704 | |
Total Revenue | 20,266 | 761 |
Income (Loss) From Operations | -326,039 | -28,905 |
Depreciation | -1,397 | |
Hotel Properties and Property, Plant, and Equipment [Member] | ||
Property, plant and equipment, net | 25,894,538 | 23,762,063 |
Hotel Properties and Property, Plant, and Equipment [Member] | Hotel Operations and Corporate Overhead [Member] | ||
Property, plant and equipment, net | 25,891,083 | 23,762,063 |
Hotel Properties and Property, Plant, and Equipment [Member] | IBC Developments [Member] | ||
Property, plant and equipment, net | $3,455 |
Note_23_Subsequent_Events_Deta
Note 23 - Subsequent Events (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | Apr. 24, 2015 | Feb. 05, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | |||
Tucson Saint Mary's Suite Hospitality LLC [Member] | Subsequent Event [Member] | ||||
Sale Price Per Membership Interest Unit | $10,000 | |||
Number of Units of Partnership Interest in a Subsidiary Committed to Purchase by an Affiliate | 350 | |||
Percentage of Membership Interest in a Subsidiary Committed to Purchase by an Affiliate | 50.07% | |||
Cumulative Priority Distributions Per Unit Per Year | 700 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,600,000 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | Board of Directors Chairman [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 60,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $3.50 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | Chief Financial Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 60,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 3.5 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | Executive Vice President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 60,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 3.5 | |||
2015 Equity Incentive Plan [Member] | Subsequent Event [Member] | President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,000,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $3.50 | |||
February 1, 2018 and Thereafter [Member] | Tucson Saint Mary's Suite Hospitality LLC [Member] | Class A Limited Partnership Units [Member] | Subsequent Event [Member] | ||||
Shares of Beneficial Interest for Each Unit | 2,500 | |||
Through January, 31 2018 [Member] | Tucson Saint Mary's Suite Hospitality LLC [Member] | Class A Limited Partnership Units [Member] | Subsequent Event [Member] | ||||
Shares of Beneficial Interest for Each Unit | 2,857 | |||
Suite Hotels LLC [Member] | Subsequent Event [Member] | ||||
Percentage of Partnership Interests Terminated | 51.00% |