Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2019 | Jul. 24, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | INNSUITES HOSPITALITY TRUST | |
Entity Central Index Key | 0000082473 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Entity's Reporting Status Current | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,330,057 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 |
Current Assets: | ||
Cash and Cash Equivalents | $ 760,262 | $ 749,075 |
Short-Term Investments - Available For Sale Securities | 1,907,016 | 1,896,556 |
Accounts Receivable, including approximately $68,000 and $79,000 from related parties and net of Allowance for Doubtful Accounts of approximately $3,000 as of April 30, 2019 and January 31, 2019, respectively | 272,908 | 236,942 |
Advances to Affiliates - Related Party | 986,361 | 986,361 |
Notes Receivable - Related Party | 632,027 | 632,027 |
Current Portion of Note Receivable | 229,167 | 229,167 |
Prepaid Expenses and Other Current Assets | 61,976 | 95,553 |
Current Assets of Discontinued Operations | 320,447 | |
Total Current Assets | 4,849,717 | 5,146,128 |
Property, Plant and Equipment, net | 9,455,264 | 9,532,793 |
Note Receivable | 2,520,833 | 2,520,833 |
Right-of-use assets, net | 2,791,249 | |
TOTAL ASSETS | 19,617,063 | 17,199,754 |
Current Liabilities: | ||
Accounts Payable and Accrued Expenses | 1,838,425 | 1,092,000 |
Current Portion of Notes Payable - Related Party | 289,307 | 317,738 |
Current Portion of Mortgage Notes Payable, net of Discount | 115,847 | 115,106 |
Current Portion of Notes Payable to Banks, net of Discount | 9,300 | |
Current Portion of Other Notes Payable | 1,224,077 | 1,229,069 |
Current Portion of Operating Lease Liabilities | 98,117 | |
Current Liabilities of Discontinued Operations | 546,803 | |
Total Current Liabilities | 3,565,773 | 3,310,016 |
Notes Payable - Related Party | 116,262 | 166,677 |
Mortgage Notes Payable, net of Discount | 4,677,921 | 4,709,586 |
Other Notes Payable | 210,632 | 264,960 |
Operating lease liabilities, net of current portion | 2,757,466 | |
TOTAL LIABILITIES | 11,328,054 | 8,451,239 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Shares of Beneficial Interest, without par value, unlimited authorization; 18,608,215 and 18,590,215 shares issued and 9,345,560 and 9,360,292 shares outstanding at April 30, 2019 and January 31, 2019, respectively | 23,417,505 | 23,738,260 |
Treasury Stock, 9,262,655 and 9,229,923 shares held at cost at April 30, 2019 and January 31, 2019, respectively | (13,575,929) | (13,517,833) |
TOTAL TRUST SHAREHOLDERS' EQUITY | 9,841,576 | 10,220,427 |
NON-CONTROLLING INTEREST | (1,552,567) | (1,471,912) |
TOTAL EQUITY | 8,289,009 | 8,748,515 |
TOTAL LIABILITIES AND EQUITY | $ 19,617,063 | $ 17,199,754 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2019 | Jan. 31, 2019 | |
Statement of Financial Position [Abstract] | ||
Accounts receivable from related parties | $ 68,000 | $ 79,000 |
Allowance for doubtful accounts receivable | $ 3,000 | $ 3,000 |
Shares of beneficial interest, without par value | ||
Shares of beneficial interest, authorized shares | Unlimited | Unlimited |
Shares of beneficial interest, shares issued | 18,608,215 | 18,590,215 |
Shares of beneficial interest, shares outstanding | 9,345,560 | 9,360,292 |
Treasury stock, shares held | 9,262,655 | 9,229,923 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
REVENUE | ||
TOTAL REVENUE | $ 2,093,018 | $ 1,863,840 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 2,242,760 | 1,754,262 |
OPERATING (LOSS) INCOME | (149,742) | 109,578 |
Interest Income | 844 | 3,632 |
Interest Income on Advances to Affiliates - Related Party | 1,970 | |
TOTAL OTHER INCOME | 2,814 | 3,632 |
Interest on Mortgage Notes Payable | 54,556 | 58,382 |
Interest on Notes Payable to Banks | 11,959 | |
Interest on Other Notes Payable | 68,346 | 23,602 |
TOTAL INTEREST EXPENSE | 122,902 | 93,943 |
CONSOLIDATED NET (LOSS) INCOME BEFORE INCOME TAX PROVISION AND DISCONTINUED OPERATIONS | (269,830) | 19,267 |
Income Tax Provision | ||
CONSOLIDATED NET (LOSS) INCOME FROM CONTINUING OPERATIONS | (269,830) | 19,267 |
Discontinued Operations, Net of Non-Controlling Interest | (309,228) | |
CONSOLIDATED NET LOSS | (269,830) | (289,961) |
LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 59,024 | 362,054 |
NET LOSS ATTRIBUTABLE TO CONTROLLING INTERESTS | $ (328,854) | $ (652,015) |
NET (LOSS) INCOME PER SHARE FROM CONTINUING OPERATIONS - BASIC | $ (0.03) | |
NET (LOSS) INCOME PER SHARE FROM CONTINUING OPERATIONS - DILUTED | (0.02) | |
NET LOSS PER SHARE FROM DISCONTINUED OPERATIONS - BASIC | (0.03) | |
NET LOSS PER SHARE FROM DISCONTINUED OPERATIONS - DILUTED | (0.02) | |
NET LOSS PER SHARE TOTAL - BASIC | (0.03) | (0.03) |
NET LOSS PER SHARE TOTAL - DILUTED | $ (0.02) | $ (0.02) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC | 9,362,857 | 9,612,139 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED | 12,668,076 | 13,085,223 |
Room [Member] | ||
REVENUE | ||
TOTAL REVENUE | $ 1,995,329 | $ 1,771,367 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 541,009 | 485,806 |
Food and Beverage [Member] | ||
REVENUE | ||
TOTAL REVENUE | 17,860 | 9,857 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 24,001 | 19,373 |
Management and Trademark Fees [Member] | ||
REVENUE | ||
TOTAL REVENUE | 63,512 | 66,929 |
Other [Member] | ||
REVENUE | ||
TOTAL REVENUE | 16,317 | 15,687 |
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 4,033 | 2,475 |
Telecommunications [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 3,188 | |
General and Administrative [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 837,673 | 494,241 |
Sales and Marketing [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 127,979 | 144,903 |
Repairs and Maintenance [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 99,803 | 106,026 |
Hospitality [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 139,700 | 106,645 |
Utilities [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 92,121 | 88,593 |
Depreciation [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | 241,755 | 205,164 |
Real Estate and Personal Property Taxes, Insurance and Ground Rent [Member] | ||
OPERATING EXPENSES | ||
TOTAL OPERATING EXPENSES | $ 134,686 | $ 97,848 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) | Shares of Beneficial Interest [Member] | Treasury Stock [Member] | Trust Shareholders' Equity [Member] | Non-Controlling Interest [Member] | Total |
Balance at Jan. 31, 2018 | $ 22,333,905 | $ (12,662,996) | $ 9,670,909 | $ (1,551,940) | $ 8,118,969 |
Balance, shares at Jan. 31, 2018 | 9,775,669 | 8,796,546 | |||
Net Loss | $ (652,015) | (652,015) | 362,054 | (289,961) | |
Purchase of Treasury Stock | $ (287,868) | (287,868) | (287,868) | ||
Purchase of Treasury Stock, shares | (149,603) | 149,603 | |||
Shares of Beneficial Interest Issued for Services Rendered | $ 8,100 | 8,100 | 8,100 | ||
Shares of Beneficial Interest Issued for Services Rendered, shares | 18,000 | ||||
Sales of Ownership Interests in Subsidiary, net | 102,824 | 102,824 | |||
Distribution to Non-Controlling Interests | (257,245) | (257,245) | |||
Reallocation of Non-Controlling Interests and Other | $ 124,903 | 124,903 | (124,903) | ||
Balance at Apr. 30, 2018 | $ 21,814,893 | $ (12,950,864) | 8,864,029 | (1,469,210) | 7,394,819 |
Balance, shares at Apr. 30, 2018 | 9,644,066 | 8,946,149 | |||
Balance at Jan. 31, 2019 | $ 23,738,260 | $ (13,517,833) | 10,220,427 | (1,471,912) | 8,748,515 |
Balance, shares at Jan. 31, 2019 | 9,360,292 | 9,229,923 | |||
Net Loss | $ (328,854) | (328,854) | 59,024 | (269,830) | |
Purchase of Treasury Stock | $ (58,096) | (58,096) | (58,096) | ||
Purchase of Treasury Stock, shares | (32,732) | 32,732 | |||
Shares of Beneficial Interest Issued for Services Rendered | $ 8,100 | 8,100 | 8,100 | ||
Shares of Beneficial Interest Issued for Services Rendered, shares | 18,000 | ||||
Sales of Ownership Interests in Subsidiary, net | |||||
Distribution to Non-Controlling Interests | (139,679) | (139,679) | |||
Reallocation of Non-Controlling Interests and Other | |||||
Balance at Apr. 30, 2019 | $ 23,417,505 | $ (13,575,929) | $ 9,841,576 | $ (1,552,567) | $ 8,289,009 |
Balance, shares at Apr. 30, 2019 | 9,345,560 | 9,262,655 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Consolidated Net Income | $ (269,830) | $ (289,961) | |
Adjustments to Reconcile Consolidated Net Income to Net Cash Used In Operating Activities: | |||
Operating Lease - Right of Use | 34,174 | ||
Stock-Based Compensation | 8,100 | 8,100 | |
Recovery of Uncollectible Receivables | (1,208) | ||
Depreciation | 241,755 | 377,738 | [1] |
Amortization of Debt Discounts and Deferred Financing Fees | 1,578 | ||
Changes in Assets and Liabilities: | |||
Accounts Receivable | (35,966) | (87,831) | |
Prepaid Expenses and Other Assets | 33,577 | 6,773 | |
Accrued Interest Income | |||
Accounts Payable and Accrued Expenses | 520,069 | 146,379 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 531,879 | 161,568 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Improvements and Additions to Hotel Properties | (134,066) | (143,704) | |
Purchase of Marketable Securities | (10,460) | (2,000,000) | |
Lendings on Advances to Affiliates - Related Party | (130,000) | ||
Collections on Advances to Affiliates - Related Party | 260,000 | ||
NET CASH USED IN INVESTING ACTIVITIES | (144,526) | (2,013,704) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Principal Payments on Mortgage Notes Payable | (30,924) | (62,416) | |
Payments on Notes Payable to Banks, net of financing costs | (124,600) | (46,805) | |
Borrowings on Notes Payable to Banks, net of financing costs | 115,300 | ||
Borrowings on Notes Payable - Related Party | 51,154 | (78,737) | |
Receipts on Notes Receivable - Related Party | (130,000) | ||
Payments on Other Notes Payable | (59,320) | (34,834) | |
Borrowings on Other Notes Payable | 297,698 | ||
Proceeds from Sale of Non-Controlling Ownership Interest in Subsidiary, net | 102,824 | ||
Distributions to Non-Controlling Interest Holders | (139,679) | (257,245) | |
Repurchase of Treasury Stock | (58,096) | (287,868) | |
NET CASH USED IN FINANCING ACTIVITIES | (376,165) | (367,383) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 11,188 | (2,219,519) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 749,075 | 4,776,453 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 760,263 | $ 2,556,934 | [2] |
[1] | Depreciation includes depreciation expense in discontinued operations for the three months ended April 30, 2018 | ||
[2] | Cash balances include cash held in discontinued operations for the three months ended April 30, 2018 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION As of April 30, 2019, InnSuites Hospitality Trust (the “Trust”, “IHT”, “we”, “us” or “our”) is a publicly traded company with hotels IHT owns and hotels IHT manages. The Trust and its shareholders own interests directly in and through a partnership interest, two hotels with an aggregate of 267 suites in Arizona and New Mexico (the “Hotels”) operated under the federally trademarked name “InnSuites Hotels” or “InnSuites as well as operating under the brand name “Best Western”. Hotel Operations: The Tucson, Arizona hotel and our hotel located in Albuquerque, New Mexico are moderate or limited service establishments. IHT’s owned properties are limited service hotels. Both hotels offer swimming pools, fitness centers, business centers, and complimentary breakfast. In addition the hotels offer social areas and modest conference facilities. The Trust is the sole general partner of RRF Limited Partnership, a Delaware limited partnership (the “Partnership”), and owned a 74.94% and 74.80% interest in the Partnership as of April 30, 2019 and January 31, 2019 respectively. The Trust’s weighted average ownership for the three months ended ended April 30, 2019 and 2018 was 74.94% and 74.80%. As of April 30, 2019, the Partnership owned a 51.01% interest in an InnSuites® hotel located in Tucson, Arizona. The Trust owns a direct 20.53% interest in an InnSuites® hotel located in Albuquerque, New Mexico. Under certain management agreements, InnSuites Hotels Inc., a 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. The Trust classified these assets in operations. These assets have been marketed for sale. At this time, the Trust is unable to predict when, and if, any of these will be sold. The Trust has listed the Tucson Hotel with a local real estate hotel broker and although the Albuquerque Hotel is not currently listed, the Trust is willing to consider offers for the Hotel. Each of the assets is being marketed at a price that is reasonable in relation to its current fair value. On October 24, 2018, the Yuma Hospitality Properties LLLP (the “Yuma entity”) was sold to an unrelated third party for $16,050,000 (see Note 18). PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION These consolidated financial statements have been prepared by management in accordance with accounting principles in accordance with GAAP, and include all assets, liabilities, revenues and expenses of the Trust and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated. Certain items have been reclassified to conform to the current fiscal year presentation. The Trust exercises unilateral control over the Partnership and the entities listed below. Therefore, the financial statements of the Partnership and the entities listed below are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. IHT OWNERSHIP % ENTITY DIRECT INDIRECT (i) Albuquerque Suite Hospitality, LLC 20.53 % - Tucson Hospitality Properties, LLLP - 51.01 % RRF Limited Partnership 74.94 % - InnSuites Hotels Inc. 100.00 % - (i) Indirect ownership is through the Partnership 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 April 30, 2019 and January 31, 2019, 211,708 Class A Partnership units were issued and outstanding, representing 1.67% of the total Partnership units, respectively. Additionally, as of April 30, 2019 and January 31, 2019, 2,974,038 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 April 30, 2019 and January 31, 2019, the limited partners in the Partnership would receive 3,185,746 Shares of Beneficial Interest of the Trust. As of April 30, 2019 and January 31, 2019, the Trust owns 9,527,448 general partner units in the Partnership, representing 74.94% and 74.94% of the total Partnership units, respectively. LIQUIDITY The Trust’s principal source of cash to meet its cash requirements, including distributions to its shareholders, is our share of the RRF quarterly distributions coming from the Tucson Hotel as well as cash flow, quarterly distributions from the Albuquerque, New Mexico property, repayments of intercompany loans for the Tucson and Albuquerque Hotels, and more recently, sales of certain of our Hotels. The Partnership’s principal source of cash flow is quarterly distributions from the Tucson, Arizona properties. The Trust’s liquidity, including our ability to make distributions to its shareholders, will depend upon the ability of the Trust and the Partnership’s ability to generate sufficient cash flow from hotel operations and to service debt as well as to generate funds from repayment of loans and sale of assets. As of April 30, 2019, the Trust had a related party Demand/Revolving Line of Credit/Promissory Note with an amount receivable of approximately $632,000. The Demand/Revolving Line of Credit/Promissory Note accrues interest at 7.0% per annum and requires interest only payments. The Demand/Revolving Line of Credit/Promissory Note has a maximum borrowing capacity to $1,000,000, which is available through December 31, 2019. As of July 19, 2019, the outstanding net balance receivable on the Demand/Revolving Line of Credit/Promissory Note was $632,000. As of April 30, 2019, the Trust had an Advance to Affiliate credit facilities with an aggregate maximum borrowing capacity of $1,000,000, which is available through December 31, 2019. As of April 30, 2019, the Trust had an amount receivable of the Advances to Affiliate credit facility of approximately $986,000. As of July 19, 2019, the amount receivable from the Advance to Affiliate credit facility was approximately $986,000. As of April 30, 2019, the Trust had a Revolving line of Credit of $150,000 with the Republic Bank of Arizona. The line had a zero balance as of April 30, 2019, With approximately $2,667,000 of cash and short term investments, as of April 30, 2019, the availability of a $1,000,000 related party Demand/Revolving Line of Credit/Promissory Note, the availability of the combined $1,000,000 Advance to Affiliate credit facilities, and the Revolving Line of Credit with Republic Bank, the Trust believes that it will have enough cash on hand to meet all of the financial obligations as they become due for at least the next year. In addition, management is analyzing other strategic options available to the Trust, including the sale of one or both hotel properties. However, such transactions may not be available on terms that are favorable to the Trust, or at all. There can be no assurance that the Trust will be successful selling properties, refinancing debt or raising additional or replacement funds, or that these funds may be available on terms that are favorable to it. If the Trust is unable to raise additional or replacement funds, it may be required to sell certain of our assets to meet liquidity needs, which may not be on terms that are favorable. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by the Trust in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Trust believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended April 30, 2019 are not necessarily indicative of the results that may be expected for the year ending January 31, 2020. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended January 31, 2019. The Company has evaluated subsequent events through the date of the filing of its Form 10-K with the Securities and Exchange Commission. Other than those events disclosed in Note 21 the Company is not aware of any other significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the Trust’s financial statements. 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 Inc. Therefore, the financial statements of the Partnership and InnSuites Hotels Inc. are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. Under Accounting Standards Codification (“ASC”) Topic 810-10-25, Albuquerque Suite Hospitality, LLC and Yuma Hospitality Properties LLLP have been determined to be variable interest entities with the Partnership as the primary beneficiary (see Note 4 – “Variable Interest Entity”). Therefore, the financial statements of Albuquerque Suite Hospitality, LLC and Yuma Hospitality Properties, LLP, prior to its sale on October 24, 2018, are consolidated with the Partnership and 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 Tucson Arizona hotel experiences the highest occupancy in the first fiscal quarter (the winter season) and, to a lesser extent, the fourth fiscal quarter. The second fiscal quarter tends to be the lowest occupancy period at this Arizona hotel. This seasonality pattern can be expected to cause fluctuations in the Trust’s quarterly revenues. The hotel located in 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 should occur at either of its two hotels, the adverse impact to the Trust’s revenues and profit could be significant. RECENTLY ISSUED ACCOUNTING GUIDANCE In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Leases The Company adopted ASU No. 2016-02 as of February 1, 2019, using the transition method per ASU No. 2018-11 issued in July 2018 wherein entities were allowed to initially apply the new leases standard at adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Accordingly, all periods prior to February 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. The Company elected the package of practical expedients permitted under the new standard which, among other things, allowed the Company to not reassess the lease classification, the lease identification and the initial direct costs for any existing leases. Further, as permitted by the standard, the Company made an accounting policy election not to record ROU assets or lease liabilities for leases with a term of 12 months or less. Instead, consistent with legacy accounting guidance, the Company will recognize payments for such leases in the consolidated statement of operations on a straight-line basis over the lease term. With adoption on February 1, 2019, this standard resulted in the recognition of additional assets of $2,821,410 and liabilities of $2,913,568 upon adoption on its accompanying condensed consolidated balance sheet. The new standard did not have a material impact on the Company’s results of operations or cash flows. In January 2017, the FASB issued Accounting Standards Update (ASU) 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-07, Compensation – Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with 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 recoverability of long-lived assets 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 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. For tax purposes the Trust takes advantage of accelerated depreciation methods (MACRS) for new capital additions and improvements to its Hotels. Management applies guidance ASC 360-10-35, to determine when it is required to test an asset for recoverability of its carrying value and whether, or not, 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 impaired these assets during the fiscal year 2018, and has determined that no further impairment is required of long-lived assets for the fiscal period ended April 30, 2019. 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. REVENUE RECOGNITION Hotel and Operations ASU 2014-09 (Topic 606), “Revenue from Contracts with Customers” is effective for reporting periods after January 1, 2018. ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. Revenues are primarily derived from the sources below and are recognized as services are rendered and when collectability is reasonably assured. Amounts received in advance of revenue recognition are considered deferred liabilities, and are generally not significant. 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 non-affiliated hotels include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels and the one hotel owned by affiliates of Mr. Wirth. Each room night consumed by a guest with a cancellable reservation represents a contract whereby the Company has a performance obligation to provide the room night at an agreed upon price. For cancellable reservations, the Company recognizes revenue as each performance obligation (i.e., each room night) is met. Such contract is renewed if the guest continues their stay. For room nights consumed by a guest with a non-cancellable reservation, the entire reservation period represents the contract term whereby the Company has a performance obligation to provide the room night or nights at an agreed upon price. For non-cancellable reservations, the Company recognizes revenue over the term of the performance period (i.e., the reservation period) as room nights are consumed. For these reservations, the room rate is typically fixed over the reservation period. The Company uses an output method based on performance completed to date (i.e., room nights consumed) to determine the amount of revenue it recognizes on a daily basis if the length of a non-cancellable reservation exceeds one night since consumption of room nights indicates when services are transferred to the guest. In certain instances, variable consideration may exist with respect to the transaction price, such as discounts, coupons and price concessions made upon guest checkout. In evaluating its performance obligation, the Company bundles the obligation to provide the guest the room itself with other obligations (such as free WiFi, grab and go breakfast, access to on-site laundry facilities and parking), as the other obligations are not distinct and separable because the guest cannot benefit from the additional amenities without the consumed room night. The Company’s obligation to provide the additional items or services is not separately identifiable from the fundamental contractual obligation (i.e., providing the room and its contents). The Company has no performance obligations once a guest’s stay is complete. 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. 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. The following is a reconciliation of the allowance for doubtful accounts for the three months ended April 30, 2019 and the fiscal year ended January 31, 2019. Period Ended Balance at the Beginning of Period Discontinued Operations Adjustment Charged to Expense Deductions Balance at the End of Year April 30, 2019 $ (5,943 ) $ - - $ - $ (5,943 ) January 31, 2019 $ (28,564 ) $ 25,000 $ (2,379 ) $ (5,943 ) LEASE ACCOUNTING The Trust determines, at the inception of a contract, if the arrangement is a lease and whether it meets the classification criteria for a finance or operating lease. ROU assets represent the Trust’s right to use an underlying asset during the lease term and lease liabilities represent the Trust’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. ROU assets also include any advance lease payments and exclude lease incentives. As most of the Trust’s operating leases do not provide an implicit rate, the Trust uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term (see Note 16). STOCK-BASED COMPENSATION The Trust has an employee equity incentive plan, which is described more fully in Note 17 - “Share-Based Payments.” For the three months ended April 30, 2019 and 2018, the Trust has paid the annual fees due to its Trustees by issuing Shares of Beneficial Interest out of its authorized but unissued Shares. 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 the three months ended April 30, 2019, the Trust granted restricted stock awards of 18,000 Shares to 3 independent members of the Board of Trustees, of which 4,500 shares vested during that period resulting in stock-based compensation of $8,100. 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. (LOSS) PER SHARE Basic and diluted income (loss) 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 3,185,746 Shares of the Beneficial Interest, as discussed in Note 1. For the three months ended April 30, 2019 and 2018, 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 3,185,746 and 3,473,085 in addition to the basic shares outstanding for the three months ended April 30, 2019 and 2018, respectively. These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were dilutive during the three months ended April 30, 2019 and 2018 and are included in the calculation of diluted earnings per share for those periods below. For the Three Months Ended April 30, 2019 2018 Net Loss attributable to controlling interest $ (328,854 ) $ (652,015 ) Plus: Net Income attributable to non-controlling interests 59,024 362,054 Net Loss $ (269,830 ) $ (289,961 ) Weighted average common shares outstanding 9,362,857 9,612,139 Plus: Weighted average incremental shares resulting from unit conversion 3,185,746 3,473,085 Weighted average common shares outstanding after unit conversion 12,548,603 13,085,223 Diluted Loss Per Share $ (0.02 ) $ (0.02 ) ADVERTISING COSTS Amounts incurred for advertising costs are expensed as incurred. Advertising expense for continuing and discontinued operations totaled approximately $83,000 and $206,000 for the three months ended April 30, 2019 and 2018, respectively. CONCENTRATION OF CREDIT RISK Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Trust to a concentration of credit risk consist primarily of cash and cash equivalents. Management’s assessment of the Trust’s credit risk for cash and cash equivalents is low as cash and cash equivalents are held in financial institutions believed to be credit worthy. The Trust limits its exposure to credit loss by placing its cash with major financial institutions and invests only in short-term obligations. While the Trust is exposed to credit losses due to the non-performance of its counterparties, the Trust considers the risk of this remote. The Trust estimates its maximum credit risk for accounts receivable at the amount recorded on the balance sheet. 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 three months ended April 30, 2019 and the year ended January 31, 2019. Due to their short maturities, the carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate 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. |
Sale of Ownership Interests in
Sale of Ownership Interests in Subsidiaries | 3 Months Ended |
Apr. 30, 2019 | |
Sale Of Ownership Interests In Subsidiaries | |
Sale of Ownership Interests in Subsidiaries | 3. SALE OF OWNERSHIP INTERESTS IN SUBSIDIARIES The Trust has sold non-controlling interests in certain subsidiaries, including Albuquerque Suite Hospitality, LLC (the “Albuquerque entity”), Tucson Hospitality Properties, LP (the “Tucson entity”), Ontario Hospitality Properties, LP (the “Ontario entity”), and Yuma Hospitality Properties, Limited Partnership (the “Yuma entity”), which sales are described in detail in our Annual Report on Form 10-K filed on June 19, 2019 with the Securities and Exchange Commissions. Generally, interests have sold for $10,000 per unit with a two-unit minimum subscription. The Trust maintains at least 50.1% of the units in one of the entities and intends to maintain this minimum ownership percentage. Generally, the units in the each of the entities are allocated to three classes with differing cumulative discretionary priority distribution rights through a certain time period. 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. Priority distributions of $700 per unit per year are cumulative until a certain date; however, after that date, generally Class A unit holders continue to hold a preference on distributions over Class B and Class C unit holders. As of February 1, 2017, the Trust no longer accrues for these distributions as the preference period generally has expired. On February 15, 2017, the Trust and Partnership entered into a restructuring agreement with Rare Earth Financial, LLC (“REF”) to allow for the sale of non-controlling partnership units in Albuquerque Suite Hospitality LLC (“Albuquerque”) for $10,000 per unit, which operates the Best Western InnSuites Albuquerque Hotel and Suites Airport hotel property, a 100 unit hotel in Albuquerque, New Mexico (the “Property”). REF and IHT are restructuring the Albuquerque Membership Interest by creating 250 additional Class A membership interests from General Member majority-owned to accredited investor member-owned. In the event of sale of 250 Class A Interests, total interests outstanding will change from 550 to 600 with Class A, Class B and Class C Limited Liability Company Interests (referred to collectively as “Interests”) restructured with IHT selling approximately 200 Class B Interests to accredited investors as Class A Interest. REF, as a General Partner of Yuma, will coordinate the offering and sale of Class A Interests to qualified third parties. REF and other REF Affiliates may purchase Interests under the offering. This restructuring is part of the Trust’s Equity Enhancement Plan to comply with Section 1003(a)(iii) of the NYSE American Company Guide. On February 15, 2017, the Trust and Partnership entered into a restructuring agreement with Rare Earth to allow for the sale of non-controlling partnership units in the Yuma entity for $10,000 per unit. Rare Earth and the Trust are restructuring the Yuma Partnership Interest from General Partner majority-owned to accredited investor majority-owned. Total interests outstanding will remain unchanged at 800 with Class A, Class B and Class C Limited Liability Limited Partnership Interests (referred to collectively as “Interests”) restructured with the Yuma entity purchasing 300 existing IHT Class B Interests and reissuing 300 Class A units to accredited investors as Class A Interests causing the Yuma entity to offer and sell up to approximately 300 Class A (2017 series) Interests. Rare Earth, as a General Partner of the Yuma entity, will coordinate the offering and sale of Class A Interests to qualified third parties. Rare Earth and other Rare Earth affiliates may purchase Interests under the offering. This restructuring is part of the Trust’s Equity Enhancement Plan to comply with Section 1003(a)(iii) of the NYSE American Company Guide. During the year ended January 31, 2019, there were 15 Class A units sold ($10,000/unit), of which 13.50 came from the Trust’s Class B units, and no C units of the Albuquerque entity sold. There were no units sold in the three months ended April 30, 2019. As of April 30, 2019 and January 31, 2019, the Trust held a 20.53% and 20.53 % ownership interest, or 123.50 Class B units, in the Albuquerque entity, Mr. Wirth and his affiliates held a 0.17% interest, or 1 Class C unit, and other third parties held a 79.30% interest, or 477 Class A units. The Trust no longer accrues for these distributions as the preference period has expired. During the three months ended April 30, 2019, there were no Class A, B or C units of the Tucson entity sold. As of April 30, 2019 and January 31, 2019, the Partnership held a 51.01% ownership interest, or 404 Class B units, in the Tucson entity, Mr. Wirth and his affiliates held a 0.38% interest, or 3 Class C units, and other parties held a 48.61% interest, or 385 Class A units. The Trust no longer accrues for these distributions as the preference period has expired. As of April 30, 2019, the Trust has sold its entire ownership interest in the Yuma entity which occurred in October 2018. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 4. VARIABLE INTEREST ENTITIES Management evaluates the Trust’s explicit and implicit variable interests to determine if they have any variable interests in VIEs. Variable interests are contractual, ownership, or other pecuniary interests in an entity whose value changes with changes in the fair value of the entity’s net assets, exclusive of variable interests. Explicit variable interests are those which directly absorb the variability of a VIE and can include contractual interests such as loans or guarantees as well as equity investments. An implicit variable interest acts the same as an explicit variable interest except it involves the absorbing of variability indirectly, such as through related party arrangements or implicit guarantees. The analysis includes consideration of the design of the entity, its organizational structure, including decision making ability over the activities that most significantly impact the VIE’s economic performance. GAAP requires a reporting entity to consolidate a VIE when the reporting entity has a variable interest, or combination of variable interest, that provides it with a controlling financial interest in the VIE. The entity that consolidates a VIE is referred to as the primary beneficiary of that VIE. The Partnership has determined that the Albuquerque entity, and the Yuma entity, prior to its sale on October 24, 2018, were a variable interest entities with the Partnership as the primary beneficiary with the ability to exercise control, as determined under the guidance of ASC Topic 810-10-25. In its determination, management considered the following qualitative and quantitative factors: a) The Partnership, Trust and their related parties, which share common ownership and management, have guaranteed material financial obligations of the Albuquerque and Yuma entities, including its distribution obligations. b) The Partnership, Trust and their related parties have maintained, as a group, a controlling ownership interest in the Albuquerque entity and Yuma, with the largest ownership belonging to the Partnership. c) The Partnership, Trust and their related parties have maintained control over the decisions which most impact the financial performance of the Albuquerque and Yuma entities, including providing the personnel to operate the property on a daily basis. During the three months ended April 30, 2019 and the fiscal year ended January 31, 2019, neither the Trust nor the Partnership have provided any implicit or explicit financial support for which they were not previously contracted. Both the Partnership and the Trust provided mortgage loan guarantees which allow our properties to obtain new financing as needed. |
Property, Plant, and Equipment
Property, Plant, and Equipment and Hotel Properties | 3 Months Ended |
Apr. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment and Hotel Properties | 5. PROPERTY, PLANT, AND EQUIPMENT AND HOTEL PROPERTIES As of April 30, 2019 and January 31, 2019, hotel properties consisted of the following: April 30, 2019 January 31, 2019 Land $ 2,500,000 $ 2,500,000 Building and improvements 10,368,761 10,334,919 Furniture, fixtures and equipment 3,934,595 3,860,574 Total hotel properties 16,803,356 16,695,493 Less accumulated depreciation (7,511,503 ) (7,312,869 ) Hotel Properties in Service, net 9,291,853 9,382,625 Construction in progress 64,585 43,657 Hotel properties, net $ 9,356,438 $ 9,426,282 As of April 30, 2019 and January 31, 2019, corporate property, plant and equipment consisted of the following: April 30, 2019 January 31, 2019 Land $ 7,005 $ 7,005 Building and improvements 75,662 75,662 Furniture, fixtures and equipment 534,879 534,879 Total property, plant and equipment 617,546 617,546 Less accumulated depreciation (518,720 ) (511,035 ) Property, Plant and Equipment, net $ 98,826 $ 106,511 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Apr. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets are carried at historical cost and are expected to be consumed within one year. As of April 30, 2019 and January 31, 2019, prepaid expenses and other current assets consisted of the following: April 30, 2019 January 31, 2019 Tax and Insurance Escrow $ 21,616 $ 57,810 Deposits 3,000 3,000 Prepaid Insurance 5,000 5,000 Prepaid Workman’s Compensation 7,465 21,459 Miscellaneous Prepaid Expenses 24,895 8,284 Total Prepaid Expenses and Other Current Assets $ 61,976 $ 95,553 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Apr. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of April 30, 2019 and January 31, 2019, accounts payable and accrued expenses consisted of the following: April 30, 2019 January 31, 2019(i) Accounts Payable $ 226,306 $ 166,339 Accrued Salaries and Wages 229,395 251,773 Accrued Vacation 21,559 28,780 Income Tax Payable 630,330 631,130 Accrued Interest Payable 4,856 4,857 Advanced Customer Deposits 59,858 60,322 Accrued Property Taxes 90,236 79,516 Accrued Land Lease 161,856 161,856 Sales Tax Payable 251,607 114,753 Deferred Revenue 31,240 31,239 Accrued Other 131,142 108,238 Total Accounts Payable and Accrued Expenses $ 1,838,425 $ 1,638,803 (i) Includes current liabilities of discontinued operations. |
Mortgage Notes Payable
Mortgage Notes Payable | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable | 8. MORTGAGE NOTES PAYABLE At April 30, 2019 and January 31, 2019, the Trust had mortgage notes payable outstanding with respect to each of the Hotels except the Albuquerque property. The mortgage notes payable has various repayment terms and have scheduled maturity dates ranging from August 2022 to June 2042. Weighted average annual interest rates on the mortgage notes payable as of April 30, 2019 and January 31, 2019 were 4.85%, respectively. The Trust’s mortgage note payable, net of debt discounts, as of April 30, 2019 and January 31, 2019 were $4,793,768 and $4,824,692, respectively. The mortgage note payable is due in monthly installments of $28,493, including interest at 4.69% per year, through June 19, 2042, secured by the Tucson Oracle property with a carrying value of $7.6 million at April 30, 2019 and January 31, 2019. On June 29, 2017, Tucson Oracle entered into a $5.0 million Business Loan Agreement (“Tucson Loan”) as a first mortgage credit facility with KS State Bank to refinance the existing first mortgage credit facility with an approximate payoff balance of $3.045 million which will allow Tucson Hospitality Properties, LLLP funds for prior and future hotel improvements. The Tucson Loan has a maturity date of June 19, 2042. The Tucson Loan has an initial interest rate of 4.69% for the first five years and thereafter a variable rate equal to the US Treasury + 2.0% with a floor of 4.69% and no prepayment penalty. This credit facility is guaranteed by InnSuites Hospitality Trust, RRF Limited Partnership, Rare Earth Financial, LLC, James F. Wirth and Gail J. Wirth and the Wirth Family Trust dated July 14, 2016. As of April 30, 2019 and January 31, 2019, the mortgage loan balance was approximately $4,794,000 and $4,825,000, respectively, net of a discount of approximately $5,000. See Note 11 – “Minimum Debt Payments” for scheduled minimum payments on the mortgage notes payable. |
Lines of Credit - Related Party
Lines of Credit - Related Party | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Lines of Credit - Related Party | 9. LINES OF CREDIT – RELATED PARTY On December 1, 2014, the Trust entered into a $1,000,000 net maximum Demand/Revolving Line of Credit/Promissory Note with Rare Earth Financial, LLC, an entity which is wholly owned by Mr. Wirth and his family members. The Demand/Revolving Line of Credit/Promissory Note, as amended on June 19, 2017, bears interest at 7.0% per annum for both a payable and receivable, is interest only quarterly and matures on December 31, 2019, and renews annually for each calendar year. 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/lending capacity of $1,000,000. As of April 30, 2019 and January 31, 2019, the Trust had an amount receivable of approximately $632,000, including accrued interest and $632,000, respectively. During the three months ended April 30, 2019 and 2018, the Trust accrued approximately $844 and $3,632, respectively, of interest income. |
Other Notes Payable
Other Notes Payable | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Other Notes Payable | 10. OTHER NOTES PAYABLE As of April 30, 2019, the Trust had approximately $440,000 in promissory notes outstanding to unrelated third parties arising from the repurchase of 82,588 Class A Partnership units in privately negotiated transactions and the repurchase of 266,894 Shares of Beneficial Interest in privately negotiated transactions. These promissory notes bear interest at 7% per year and are due in varying monthly payments through July 2020. As of April 30, 2019, the Trust had a $100,000 note payable with an individual lender. The promissory note is payable on demand, or on June 30, 2021, whichever occurs first. The loan accrues interest at 7% and interest only payments shall be made monthly and are due on the first of the following month. The Trust may pay all of part of this note without any repayment penalties. As of July 1, 2019 IHT has verbal agreement to extend the note until June 30, 2021 at 4.5% interest only with similar terms (see Note 21). On June 20, 2016, the Trust and the Partnership together entered into multiple unsecured loans totaling $270,000 with Guy C. Hayden III (“Hayden Loans”). As of July 1, 2019 IHT has verbal agreement to consolidate and extend the Hayden loans at 4.5% interest only, with similar terms to June 30, 2021 (see Note 21). The Trust and Partnership may call these with 90 day written notice. The total principal amount of the Hayden Loans was $270,000 as of April 30, 2019. On December 5, 2016, the Trust and the Partnership together entered into eight unsecured loans for a total of $425,000 with H. W. Hayes Trust (“Hayes Loans”). On March 20, 2017, the Trust and Partnership added additional loans to Marriott Sweitzer Hayes (“Sweitzer Loans”), totaling $100,000. The total principal amount of the Sweitzer Loans is $100,000 as of April 30, 2019. The Sweitzer Loans are due on June 20, 2019, but as of July 1, 2019 IHT has verbal agreement to extend the note until June 30, 2021 at 4.0% interest only, with similar terms. The Hayes loan will be paid in full at maturity on July 1, 2019. As of April 30, 2019, total balance of the above loans is $425,000. See Note 11 – “Minimum Debt Payments” for scheduled minimum payments on the mortgage notes payable. |
Minimum Debt Payments
Minimum Debt Payments | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Minimum Debt Payments | 11. MINIMUM DEBT PAYMENTS Scheduled minimum payments of debt, net of debt discounts, as of April 30, 2019 are as follows in the respective fiscal years indicated: FISCAL YEAR MORTGAGES NOTES PAYABLE RELATED PARTIES OTHER NOTES PAYABLE TOTAL Remainder of 2020 86,000 268,000 1,177,000 1,531,000 2021 119,000 137,000 202,000 458,000 2022 127,000 - 56,000 183,000 2023 130,000 - - 130,000 2024 135,000 - - 135,000 Thereafter 4,197,000 - - 4,197,000 $ 4,794,000 $ 405,000 $ 1,435,000 $ 6,634,000 |
Description of Beneficial Inter
Description of Beneficial Interests | 3 Months Ended |
Apr. 30, 2019 | |
Description Of Beneficial Interests | |
Description of Beneficial Interests | 12. 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. 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, of 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. Additionally, on June 19, 2017, 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 750,000 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 InnSuites Hospitality Trust 1997 Stock Incentive and Option Plan. For the three months ended April 30, 2019 and 2018, the Trust repurchased 32,732 and 149,603 Shares of Beneficial Interest at an average price of $1.77 and $1.92 per share, respectively. The average price paid includes brokerage commissions. The Trust intends to continue repurchasing Shares of Beneficial Interest in compliance with applicable legal and NYSE AMERICAN requirements. The Trust remains authorized to repurchase an additional 411,776 Partnership units and/or Shares of Beneficial Interest pursuant to the publicly announced share repurchase program, which has no expiration date. Repurchased Shares of Beneficial Interest are accounted for as treasury stock in the Trust’s Consolidated Statements of Shareholders’ Equity. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. RELATED PARTY TRANSACTIONS As of April 30, 2019 and January 31, 2019, Mr. Wirth and his affiliates held 2,974,038 Class B Partnership units, which represented 23.39% and 23.39% of the total outstanding Partnership units, respectively. As of April 30, 2019 and January 31, 2019, Mr. Wirth and his affiliates held 5,881,683 Shares of Beneficial Interest in the Trust, respectively, which represented 62.93% and 62.84% respectively, of the total issued and outstanding Shares of Beneficial Interest. As of April 30, 2019 and January 31, 2019, the Trust owned 74.94% and 74.94% of the Partnership, respectively. As of April 30, 2019, the Partnership owned a 51.01% interest in the InnSuites® hotel located in Tucson. The Trust also owned a direct 20.53% 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 Inc. Under the management agreements, InnSuites Hotels Inc. manages the daily operations of the two Hotels and the hotel owned by affiliates of Mr. Wirth. Revenues and reimbursements among the Trust, InnSuites Hotels Inc. and the Partnership have been eliminated in consolidation. The management fees for the Hotels and the hotel owned by affiliates of Mr. Wirth are set at 5.0% 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. For the three months ended April 30, 2019, the Trust recognized approximately $65,312 of revenue. Pamela Barnhill, former Vice Chairperson and President of the Trust, resigned in June 2018, and is the daughter of Mr. Wirth, the Trust’s Chairman and Chief Executive Officer. Ms. Barnhill had compensation of $0 and $40,945 for the three months ended April 30, 2019 and 2018, respectively. The Trust also employs another immediate family member of Mr. Wirth, Brian James Wirth, who provides technology support services to the Trust, receiving a $36,000 annual salary. On December 22, 2015, the Trust provided Advances to Affiliate – Related Party in the amount of $500,000 to Tempe/Phoenix Airport Resort LLC. Mr. Wirth, individually and thru one of his affiliates owns approximately 42% Tempe/Phoenix Airport Resort LLC. The note has a due date of December 31, 2019 and accrues interest of 7.0%. During the three months ended April 30, 2019 and 2018, the Trust received $1,970 and $0 of interest income, respectively, from Tempe/Phoenix Airport Resort LLC, respectively. As of April 30, 2019, the Advances from Affiliate – Related Party balance was $986,361 from Tempe/Phoenix Airport Resort LLC. |
Statements of Cash Flows, Suppl
Statements of Cash Flows, Supplemental Disclosures | 3 Months Ended |
Apr. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Statements of Cash Flows, Supplemental Disclosures | 14. STATEMENTS OF CASH FLOWS, SUPPLEMENTAL DISCLOSURES The Trust paid $122,902 and $177,313 in cash for interest for the three months ended April 30, 2019 and 2018, respectively for continuing operations. The amounts paid related to Notes Payables - IHT Shares of Beneficial Interest and Partnership Units repurchases amounted to $189,320 and $113,000, respectively, for the three months ended April 30, 2019 and 2018. No cash was paid for taxes for the three months ended April 30, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES 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.” Since a $0 cash balance existed in Restricted Cash as of April 30, 2019 and January 31, 2019, Restricted Cash line was omitted on the Trust’s Consolidated Balance Sheet. Membership Agreements: InnSuites Hotels has entered into membership agreements with Best Western International, Inc. (“Best Western”) for both of the hotel properties. In exchange for use of the Best Western name, trademark and reservation system, all 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 Hotels. The agreements with Best Western have no specific expiration terms and may be cancelled by either party. Best Western requires that the 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 $42,000 and $63,000 for the three months ended April 30, 2019 and 2018, respectively. These costs are included in room operating expenses in the Unaudited Condensed Consolidated Statements of Operations. 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. Litigation: 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. Indemnification: The Trust has entered into indemnification agreements with all of our executive officers and Trustees. The agreements provide for indemnification against all liabilities and expenses reasonably incurred by an officer or Trustee in connection with the defense or disposition of any suit or other proceeding, in which he or she may be involved or with which he or she may be threatened, while in office or thereafter, because of his or her position at the Trust. There is no indemnification for any matter as to which an officer or Trustee is adjudicated to have acted in bad faith, with willful misconduct or reckless disregard of his or her duties, with gross negligence, or not in good faith in the reasonable belief that his or her action was in the Trust’s best interests. These agreements require the Trust, among other things, to indemnify the director or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with any action, suit or proceeding arising out of the individual’s status or service as our director or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by us. The Trust may advance payments in connection with indemnification under the agreements. The level of indemnification is to the full extent of the net equity based on appraised and/or market value of the Trust. Historically, the Trust has not incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets. See Note 16 – Leases, for discussion on lease payment commitments. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Leases | 16. LEASES The Company has operating leases for its corporate offices in Phoenix, Arizona, land leased in Albuquerque, New Mexico, and cable equipment leased for its Tucson, Arizona property. The Company’s lease terms include options to extend or terminate the leases and the Company includes these options in the lease term when it is reasonably certain to exercise that option. Operating Leases On August 4, 2017, the InnSuites Hospitality Trust (“IHT” or “the Company” or “the Trust”) entered into a five-year office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020 commencing on September 1, 2017. Base monthly rent of $4,100 increases 6% on a yearly basis. No rent is due for October 2018 and October 2022 months. The Trust also agreed to pay electricity and applicable sales tax. The office lease agreement provides early termination with a 90 day notification with an early termination fee of $12,000, $8,000, $6,000, $4,000 and $2,000 for years 1 - 5 of the lease term. The Company’s 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. The Company’s Tucson, Arizona hotel property leases satellite television equipment for all of its 159 rooms and common areas. The lease commenced in November 2018 and expires 5 years from the date of commencement. The following table presents the Company’s lease costs for the three months ended April 30, 2019: Three Months Ended April 30, 2019 Lease Costs: Operating lease cost* $ 64,334 * Short term lease costs were immaterial. Supplemental cash flow information is as follows: Three Months Ended April 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 57,985 Right-of-use assets obtained in exchange for lease obligations: Operating leases, net $ 2,791,249 The aggregate future lease payments for ROU assets as of April 30, 2019 are as follows: For the Years Ending January 31, ROU Assets Remaining in 2020 $ 173,956 2021 231,941 2022 231,941 2023 208,829 2024 168,691 Thereafter 5,050,859 Total minimum lease payments $ 6,066,217 Less: amount representing interest 3,210,634 Total present value of minimum payments 2,855,583 Less: current portion $ 98,117 Long-term obligations $ 2,757,466 Weighted average remaining lease terms and discount rates were as follows: Weighted average remaining lease term (years) April 30, 2019 Operating leases 34.81 Weighted average discount rate Operating leases 4.76 % |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Share-Based Payments | 17. SHARE-BASED PAYMENTS The Trust compensates its non-employee Trustees for their services through grants of restricted Shares. The aggregate grant date fair value of these Shares was $8,100. These restricted 18,000 shares vest in equal monthly amounts during fiscal year 2020. 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 during the three months ended April 30, 2019, and no options were outstanding as of that period end. The Plan currently has 1,000,000 options available to grant. See Note 19 for additional information on stock options. The Plan also permits the Trust to award stock appreciation rights, none of which, as of April 30, 2019, have been issued. See Note 2 – “Summary of Significant Accounting Policies” for information related to grants of restricted shares under “Stock-Based Compensation.” |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 18. DISCONTINUED OPERATIONS Sale of IBC Hospitality Technologies; IBC Hotels LLC (IBC) Discontinued operations for the three months ended April 30, 2018 consist of the operations from the IBC Technology Segment (IBC Hotels LLC). On August 15, 2018 Innsuites Hospitality Trust (IHT) entered into a final sale agreement for its subsidiary IBC Hotels LLC (IBC) with an effective sale date as of August 1, 2018 to an unrelated third party buyer (Buyer). The buyer hired IHT’s former Chief Operating Officer, who is a family member of IHT’s CEO. The sale price was $3,000,000, to be paid to IHT as follows: 1. $250,000 at closing, which was received on August 14, 2018; 2. A secured promissory note in the principal amount of $2,750,000 with interest to be accrued at 3.75% per annum, recorded in the accompanying condensed balance sheet in continuing operations. Interest shall accrue for the first 10 months (starting August 2018), thereafter for month 11 and 12 principal and interest payments of 50% ($25,632 per month), then the remaining amount to be amortized over 59 months (payments of $52,054 per month) with maturity in June 2024. Future payments on this note are shown in the table below. FISCAL YEAR 2020 $ 229,167 2021 550,000 2022 550,000 2023 550,000 2024 550,000 Thereafter 320,833 $ 2,750,000 Note is secured by (1) pledge of the Buyer’s interest in IBC, and (2) a security interest in all assets of IBC provided IHT shall agree to subordinate such equity interest to commercially reasonable debt financing upon request. If after effective date IBC closes an equity transaction with net proceeds to IBC in excess of $2,500,000, IBC/Buyer shall pay to IHT an amount equal to (a) 50% of the net proceeds received by IBC and (b) 50% of the sum of the unpaid balance of the note and accrued interest accrued but unpaid interest thereon, as the date of receipt of the net proceeds by IBC. IHT has agreed to provide continuing working capital support for a period of six months in the amount of approximately $100,000 over a six month period to IBC for transitional purposes. IHT has no managerial control nor does IHT have the ability to direct the operations or capital requirements of IBC as of August 1, 2018. IHT has no rights to any benefits or losses from IBC as of August 1, 2018. During the fiscal year ended January 31, 2019 IHT had provided $100,000 to IBC. Default If Buyer has not paid two or more payments on the note as scheduled, or if Buyer has not satisfied any other provisions in the note, IHT may give Buyer notice of default. If Buyer fails to cure the default within 30 days after notice (a) on or before February 5, 2020, then 75% of the issued and outstanding IBC interest shall be transferred to IHT, and (b) on or after February 5, 2020, then 51% of the issued and outstanding interest of the Company shall be transferred to IHT. Currently there has been no default. Sale of Yuma Property On July 31, 2018, IHT entered into a purchase and sale agreement to sell its Innsuites Yuma Hotel and Suites Best Western (Yuma), together with certain furniture, fixtures, equipment, operating supplies and other ancillary items pertaining to the daily operations to an unrelated third party. The sale was completed on October 24, 2018. The sales price, as revised, was approximately $16.05 million, of which the net proceeds (net of mortgage payoff, commissions and closing costs) received by the IHT was approximately $9.93 million FOR THE THREE MONTHS ENDED APRIL 30, 2019 2018 REVENUE Room $ - $ 1,276,105 Food and Beverage - 12,540 Reservation and Convention - 311,242 Other - 11,553 TOTAL REVENUE - 1,611,440 OPERATING EXPENSES Room - 301,058 Food and Beverage - 16,592 Telecommunications - 8,229 General and Administrative - 477,436 Sales and Marketing - 319,948 Reservation Acquisition Costs - 351,574 Repairs and Maintenance - 59,481 Hospitality - 63,993 Utilities - 43,451 Depreciation - 172,574 Real Estate and Personal Property Taxes, Insurance and Ground Rent - 18,886 Other - 4,076 TOTAL OPERATING EXPENSES - 1,837,298 OPERATING LOSS - (225,858 ) Interest on Mortgage Notes Payable - 67,666 Interest on Notes Payable to Banks - 3,148 Interest on Other Notes Payable - 12,556 TOTAL INTEREST EXPENSE - 83,370 CONSOLIDATED NET LOSS OF DISCONTINUED OPERATIONS $ - $ (309,228 ) |
Stock Options
Stock Options | 3 Months Ended |
Apr. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options | 19. STOCK OPTIONS Effective February 5, 2015, the Board of Trustees of the Trust adopted the 2015 Equity Incentive Plan (“2015 Plan”), subject to shareholder 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 Board of Trustees of the Trust has decided to terminate the 2015 Plan. Effective October 31, 2016, it has been determined that the Shareholders will not approve the 2015 Plan and the proposed grants have been rescinded. During the 2017 Annual Meeting of Shareholders, the IHT Shareholders approved the InnSuites Hospitality Trust 2017 Equity Incentive Plan (“2017 Plan”). Management has not granted any options under the 2017 Plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 20. INCOME TAXES The Trust’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Trust has received various IRS and state tax jurisdiction notices which the Trust in the process of responding to in which management believes the notices are without merit and expect full remediation of all tax notices. However, the Trust has accrued approximately $200,000, respectively, for potential interest and/or penalties as of April 30, 2019 and January 31, 2019 related to these IRS and State tax jurisdiction notices. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. SUBSEQUENT EVENTS On May 30, 2019 the Trust’s Board of Trustees approved a one cent semi-annual dividend, payable on July 31, 2019, on shares held of record a July 19, 2019. This continues the Trust’s recent practice of paying total annual dividends of two cents per share, payable one cent each semi-annually on July 31 and January 31. This dividend continues 49 consecutive uninterrupted fiscal years during which the Trust has paid annual dividends, since the formation of the Trust and the initial listing of its shares on the New York Stock Exchange in 1971. The Trust’s listing of the Albuquerque Hotel for sale for $7.5 million expired on April 30, 2019. The Trust continues to entertain offers at this asking price, but decided not to relist the property at this time because management perceives that year-over-year increases in operating revenues and anticipated profits have occurred, which could command a higher listing price. Effective May 31, 2019, the Trust listed the Tucson Hotel for sale at a price of $15.8 million with a real estate broker who successfully sold four other InnSuites hotels in the past three years. The Trust set forth this price as the asking price for the Tucson Hotel in its current Annual Report on Form 10-K, and management believes that that year-over-year increases in operating revenues and anticipated profits support this as a listing price. As part of the Trust’s business strategy, and as described in the Trust’s current Annual Report on Form 10-K, management is actively seeking a larger company that is not listed on the NYSE AMERICAN as a potential partner for a merger. The Trust has begun limited discussions with potential candidates. On May 30, 2019, the Trust’s Board of Trustees set a date of July 24, 2019 for the Annual Shareholder meeting, to be held at 11:00 AM MST at the Trust’s corporate office: 1730 East Northern Ave, Suite 122, Phoenix, AZ 85020. Shareholders of record of the Trust on June 24, 2019 will be entitled to vote at the meeting. On June 25, 2019, the Trust’s Board of Trustees approved the repurchase of up to 750,000 share or units in addition to previously authorized but unused of approximately 200,000 shares or units. On July 8, 2019, the Trust paid off the note due to Hayes Trust of $425,000. On July 1, 2019 the Trust has a verbal agreement to extend a $200,000 note with an individual lender, to June 30, 2021 at 4.5% interest only (see note 10). Formal documents are in the process of being executed. On July 1, 2019 the Trust has a verbal agreement to extend the note(s) payable with Guy C. Hayden III (“Haydens Loans”), totaling $270,000, to June 30, 2021 at 4.5% interest only (see note 10). Formal documents are in the process of being executed. On July 1, 2019 the Trust has a verbal agreement to extend the note(s) payable with Marriott Sweitzer Hayes (“Sweitzer Loans”), totaling $100,000, to June 30, 2021 at 4% interest only (see note 10). Formal documents are in the process of being executed. Subsequent to the three months ended April 30, 2019, the Trust repurchased 15,503 Shares of Beneficial Interest on the open market for a total cash repurchase price of approximately $25,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | USE OF ESTIMATES The preparation of financial statements in conformity with 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 recoverability of long-lived assets and the fair values of the long-lived assets. |
Property, Plant and Equipment and Hotel Properties | PROPERTY, PLANT AND EQUIPMENT AND HOTEL PROPERTIES Furniture, fixtures, building improvements and hotel properties are stated at cost and 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. For tax purposes the Trust takes advantage of accelerated depreciation methods (MACRS) for new capital additions and improvements to its Hotels. Management applies guidance ASC 360-10-35, to determine when it is required to test an asset for recoverability of its carrying value and whether, or not, 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 impaired these assets during the fiscal year 2018, and has determined that no further impairment is required of long-lived assets for the fiscal period ended April 30, 2019. |
Cash and Cash Equivalents | 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. |
Revenue Recognition | REVENUE RECOGNITION Hotel and Operations ASU 2014-09 (Topic 606), “Revenue from Contracts with Customers” is effective for reporting periods after January 1, 2018. ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. Revenues are primarily derived from the sources below and are recognized as services are rendered and when collectability is reasonably assured. Amounts received in advance of revenue recognition are considered deferred liabilities, and are generally not significant. 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 non-affiliated hotels include a monthly accounting fee and a percentage of hotel room revenues for managing the daily operations of the Hotels and the one hotel owned by affiliates of Mr. Wirth. Each room night consumed by a guest with a cancellable reservation represents a contract whereby the Company has a performance obligation to provide the room night at an agreed upon price. For cancellable reservations, the Company recognizes revenue as each performance obligation (i.e., each room night) is met. Such contract is renewed if the guest continues their stay. For room nights consumed by a guest with a non-cancellable reservation, the entire reservation period represents the contract term whereby the Company has a performance obligation to provide the room night or nights at an agreed upon price. For non-cancellable reservations, the Company recognizes revenue over the term of the performance period (i.e., the reservation period) as room nights are consumed. For these reservations, the room rate is typically fixed over the reservation period. The Company uses an output method based on performance completed to date (i.e., room nights consumed) to determine the amount of revenue it recognizes on a daily basis if the length of a non-cancellable reservation exceeds one night since consumption of room nights indicates when services are transferred to the guest. In certain instances, variable consideration may exist with respect to the transaction price, such as discounts, coupons and price concessions made upon guest checkout. In evaluating its performance obligation, the Company bundles the obligation to provide the guest the room itself with other obligations (such as free WiFi, grab and go breakfast, access to on-site laundry facilities and parking), as the other obligations are not distinct and separable because the guest cannot benefit from the additional amenities without the consumed room night. The Company’s obligation to provide the additional items or services is not separately identifiable from the fundamental contractual obligation (i.e., providing the room and its contents). The Company has no performance obligations once a guest’s stay is complete. 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. |
Accounts Receivables and Allowance for Doubtful Accounts | 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. The following is a reconciliation of the allowance for doubtful accounts for the three months ended April 30, 2019 and the fiscal year ended January 31, 2019. Period Ended Balance at the Beginning of Period Discontinued Operations Adjustment Charged to Expense Deductions Balance at the End of Year April 30, 2019 $ (5,943 ) $ - - $ - $ (5,943 ) January 31, 2019 $ (28,564 ) $ 25,000 $ (2,379 ) $ (5,943 ) |
Lease Accounting | LEASE ACCOUNTING The Trust determines, at the inception of a contract, if the arrangement is a lease and whether it meets the classification criteria for a finance or operating lease. ROU assets represent the Trust’s right to use an underlying asset during the lease term and lease liabilities represent the Trust’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. ROU assets also include any advance lease payments and exclude lease incentives. As most of the Trust’s operating leases do not provide an implicit rate, the Trust uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term (see Note 16). |
Stock-based Compensation | STOCK-BASED COMPENSATION The Trust has an employee equity incentive plan, which is described more fully in Note 17 - “Share-Based Payments.” For the three months ended April 30, 2019 and 2018, the Trust has paid the annual fees due to its Trustees by issuing Shares of Beneficial Interest out of its authorized but unissued Shares. 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 the three months ended April 30, 2019, the Trust granted restricted stock awards of 18,000 Shares to 3 independent members of the Board of Trustees, of which 4,500 shares vested during that period resulting in stock-based compensation of $8,100. |
Treasury Stock | 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. |
(Loss) Per Share | (LOSS) PER SHARE Basic and diluted income (loss) 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 3,185,746 Shares of the Beneficial Interest, as discussed in Note 1. For the three months ended April 30, 2019 and 2018, 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 3,185,746 and 3,473,085 in addition to the basic shares outstanding for the three months ended April 30, 2019 and 2018, respectively. These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were dilutive during the three months ended April 30, 2019 and 2018 and are included in the calculation of diluted earnings per share for those periods below. For the Three Months Ended April 30, 2019 2018 Net Loss attributable to controlling interest $ (328,854 ) $ (652,015 ) Plus: Net Income attributable to non-controlling interests 59,024 362,054 Net Loss $ (269,830 ) $ (289,961 ) Weighted average common shares outstanding 9,362,857 9,612,139 Plus: Weighted average incremental shares resulting from unit conversion 3,185,746 3,473,085 Weighted average common shares outstanding after unit conversion 12,548,603 13,085,223 Diluted Loss Per Share $ (0.02 ) $ (0.02 ) |
Advertising Costs | ADVERTISING COSTS Amounts incurred for advertising costs are expensed as incurred. Advertising expense for continuing and discontinued operations totaled approximately $83,000 and $206,000 for the three months ended April 30, 2019 and 2018, respectively. |
Concentration of Credit Risk | CONCENTRATION OF CREDIT RISK Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Trust to a concentration of credit risk consist primarily of cash and cash equivalents. Management’s assessment of the Trust’s credit risk for cash and cash equivalents is low as cash and cash equivalents are held in financial institutions believed to be credit worthy. The Trust limits its exposure to credit loss by placing its cash with major financial institutions and invests only in short-term obligations. While the Trust is exposed to credit losses due to the non-performance of its counterparties, the Trust considers the risk of this remote. The Trust estimates its maximum credit risk for accounts receivable at the amount recorded on the balance sheet. |
Fair Value of Financial Instruments | 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 three months ended April 30, 2019 and the year ended January 31, 2019. Due to their short maturities, the carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate 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. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Entity Ownership Percentage | Therefore, the financial statements of the Partnership and the entities listed below are consolidated with the Trust, and all significant intercompany transactions and balances have been eliminated. IHT OWNERSHIP % ENTITY DIRECT INDIRECT (i) Albuquerque Suite Hospitality, LLC 20.53 % - Tucson Hospitality Properties, LLLP - 51.01 % RRF Limited Partnership 74.94 % - InnSuites Hotels Inc. 100.00 % - (i) Indirect ownership is through the Partnership |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable and Allowance for Doubtful Accounts | The following is a reconciliation of the allowance for doubtful accounts for the three months ended April 30, 2019 and the fiscal year ended January 31, 2019. Period Ended Balance at the Beginning of Period Discontinued Operations Adjustment Charged to Expense Deductions Balance at the End of Year April 30, 2019 $ (5,943 ) $ - - $ - $ (5,943 ) January 31, 2019 $ (28,564 ) $ 25,000 $ (2,379 ) $ (5,943 ) |
Schedule of Diluted Earnings Per Share | These Shares of Beneficial Interest issuable upon conversion of the Class A and Class B Partnership units were dilutive during the three months ended April 30, 2019 and 2018 and are included in the calculation of diluted earnings per share for those periods below. For the Three Months Ended April 30, 2019 2018 Net Loss attributable to controlling interest $ (328,854 ) $ (652,015 ) Plus: Net Income attributable to non-controlling interests 59,024 362,054 Net Loss $ (269,830 ) $ (289,961 ) Weighted average common shares outstanding 9,362,857 9,612,139 Plus: Weighted average incremental shares resulting from unit conversion 3,185,746 3,473,085 Weighted average common shares outstanding after unit conversion 12,548,603 13,085,223 Diluted Loss Per Share $ (0.02 ) $ (0.02 ) |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment and Hotel Properties (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of April 30, 2019 and January 31, 2019, hotel properties consisted of the following: April 30, 2019 January 31, 2019 Land $ 2,500,000 $ 2,500,000 Building and improvements 10,368,761 10,334,919 Furniture, fixtures and equipment 3,934,595 3,860,574 Total hotel properties 16,803,356 16,695,493 Less accumulated depreciation (7,511,503 ) (7,312,869 ) Hotel Properties in Service, net 9,291,853 9,382,625 Construction in progress 64,585 43,657 Hotel properties, net $ 9,356,438 $ 9,426,282 As of April 30, 2019 and January 31, 2019, corporate property, plant and equipment consisted of the following: April 30, 2019 January 31, 2019 Land $ 7,005 $ 7,005 Building and improvements 75,662 75,662 Furniture, fixtures and equipment 534,879 534,879 Total property, plant and equipment 617,546 617,546 Less accumulated depreciation (518,720 ) (511,035 ) Property, Plant and Equipment, net $ 98,826 $ 106,511 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | As of April 30, 2019 and January 31, 2019, prepaid expenses and other current assets consisted of the following: April 30, 2019 January 31, 2019 Tax and Insurance Escrow $ 21,616 $ 57,810 Deposits 3,000 3,000 Prepaid Insurance 5,000 5,000 Prepaid Workman’s Compensation 7,465 21,459 Miscellaneous Prepaid Expenses 24,895 8,284 Total Prepaid Expenses and Other Current Assets $ 61,976 $ 95,553 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | As of April 30, 2019 and January 31, 2019, accounts payable and accrued expenses consisted of the following: April 30, 2019 January 31, 2019(i) Accounts Payable $ 226,306 $ 166,339 Accrued Salaries and Wages 229,395 251,773 Accrued Vacation 21,559 28,780 Income Tax Payable 630,330 631,130 Accrued Interest Payable 4,856 4,857 Advanced Customer Deposits 59,858 60,322 Accrued Property Taxes 90,236 79,516 Accrued Land Lease 161,856 161,856 Sales Tax Payable 251,607 114,753 Deferred Revenue 31,240 31,239 Accrued Other 131,142 108,238 Total Accounts Payable and Accrued Expenses $ 1,838,425 $ 1,638,803 (i) Includes current liabilities of discontinued operations. |
Minimum Debt Payments (Tables)
Minimum Debt Payments (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Scheduled of Minimum Payments of Debt | Scheduled minimum payments of debt, net of debt discounts, as of April 30, 2019 are as follows in the respective fiscal years indicated: FISCAL YEAR MORTGAGES NOTES PAYABLE RELATED PARTIES OTHER NOTES PAYABLE TOTAL Remainder of 2020 86,000 268,000 1,177,000 1,531,000 2021 119,000 137,000 202,000 458,000 2022 127,000 - 56,000 183,000 2023 130,000 - - 130,000 2024 135,000 - - 135,000 Thereafter 4,197,000 - - 4,197,000 $ 4,794,000 $ 405,000 $ 1,435,000 $ 6,634,000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Costs | The following table presents the Company’s lease costs for the three months ended April 30, 2019: Three Months Ended April 30, 2019 Lease Costs: Operating lease cost* $ 64,334 * Short term lease costs were immaterial. |
Schedule of Supplemental Cash Flow Information for Lease | Supplemental cash flow information is as follows: Three Months Ended April 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 57,985 Right-of-use assets obtained in exchange for lease obligations: Operating leases, net $ 2,791,249 |
Schedule of Future Lease Payments for Right-of-use Assets | The aggregate future lease payments for ROU assets as of April 30, 2019 are as follows: For the Years Ending January 31, ROU Assets Remaining in 2020 $ 173,956 2021 231,941 2022 231,941 2023 208,829 2024 168,691 Thereafter 5,050,859 Total minimum lease payments $ 6,066,217 Less: amount representing interest 3,210,634 Total present value of minimum payments 2,855,583 Less: current portion $ 98,117 Long-term obligations $ 2,757,466 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates | Weighted average remaining lease terms and discount rates were as follows: Weighted average remaining lease term (years) April 30, 2019 Operating leases 34.81 Weighted average discount rate Operating leases 4.76 % |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Future Payments on Notes | FISCAL YEAR 2020 $ 229,167 2021 550,000 2022 550,000 2023 550,000 2024 550,000 Thereafter 320,833 $ 2,750,000 |
Schedule of Discontinued Operations | FOR THE THREE MONTHS ENDED APRIL 30, 2019 2018 REVENUE Room $ - $ 1,276,105 Food and Beverage - 12,540 Reservation and Convention - 311,242 Other - 11,553 TOTAL REVENUE - 1,611,440 OPERATING EXPENSES Room - 301,058 Food and Beverage - 16,592 Telecommunications - 8,229 General and Administrative - 477,436 Sales and Marketing - 319,948 Reservation Acquisition Costs - 351,574 Repairs and Maintenance - 59,481 Hospitality - 63,993 Utilities - 43,451 Depreciation - 172,574 Real Estate and Personal Property Taxes, Insurance and Ground Rent - 18,886 Other - 4,076 TOTAL OPERATING EXPENSES - 1,837,298 OPERATING LOSS - (225,858 Interest on Mortgage Notes Payable - 67,666 Interest on Notes Payable to Banks - 3,148 Interest on Other Notes Payable - 12,556 TOTAL INTEREST EXPENSE - 83,370 CONSOLIDATED NET LOSS OF DISCONTINUED OPERATIONS $ - $ (309,228 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details Narrative) | Oct. 24, 2018USD ($) | Apr. 30, 2019USD ($)Integershares | Apr. 30, 2018 | Jan. 31, 2019USD ($)shares | Feb. 02, 2019USD ($) |
Number of hotels | Integer | 2 | ||||
Number of suites | Integer | 267 | ||||
Line of credit amount | $ 0 | ||||
Debt instrument interest rate | 7.00% | 7.00% | |||
Operating right of use assets | $ 2,791,249 | ||||
Operating lease liabilities | 2,855,583 | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Operating right of use assets | $ 2,821,410 | ||||
Operating lease liabilities | $ 2,913,568 | ||||
Republic Bank of Arizona [Member] | |||||
Line of credit amount | $ 150,000 | ||||
General Partner Units [Member] | |||||
Partnership ownership interest percentage | 74.94% | 74.94% | |||
Number of partnership units | shares | 9,527,448 | 9,527,448 | |||
Class A Partnership Units [Member] | |||||
Percentage of total partnership units | 1.67% | 1.67% | |||
Class A Partnership Units [Member] | |||||
Partnership unit issued | shares | 211,708 | 211,708 | |||
Partnership unit outstanding | shares | 211,708 | 211,708 | |||
James Wirth [Member] | Class B Partnership Units [Member] | |||||
Partnership unit outstanding | shares | 2,974,038 | 2,974,038 | |||
Trust [Member] | |||||
Line of credit amount | $ 632,000 | ||||
Debt instrument interest rate | 7.00% | ||||
Cash and cash equivalents | $ 2,667,000 | ||||
Line of credit availability combined | 1,000,000 | ||||
Advances to affiliates | 1,000,000 | ||||
Trust [Member] | Advances to Affiliate [Member] | |||||
Line of credit amount | 986,000 | ||||
Trust [Member] | Through December 31, 2019 [Member] | |||||
Line of credit limit | 1,000,000 | ||||
Trust [Member] | Through December 31, 2019 [Member] | Advances to Affiliate [Member] | |||||
Line of credit limit | 1,000,000 | ||||
Trust [Member] | July 19, 2019 [Member] | |||||
Line of credit amount | 632,000 | ||||
Trust [Member] | July 19, 2019 [Member] | Advances to Affiliate [Member] | |||||
Line of credit amount | $ 986,000 | ||||
RRF Limited Partnership [Member] | Weighted Average [Member] | |||||
Percentage of ownership interest held by the trust | 74.94% | 74.80% | |||
Innsuites Hotel Located in Tucson, Arizona [Member] | RRF Limited Partnership [Member] | |||||
Partnership ownership interest percentage | 51.01% | ||||
Innsuites Hotel Located in Albuquerque New Mexico [Member] | |||||
Percentage of ownership interest held by the trust | 20.53% | ||||
Partnership ownership interest percentage | 20.53% | ||||
Yuma Hospitality Properties Limited Partnership [Member] | |||||
Sale of stock transaction value | $ 16,050,000 | ||||
General Partner [Member] | |||||
Partnership ownership interest percentage | 74.94% | 74.94% | |||
General Partner [Member] | RRF Limited Partnership [Member] | |||||
Percentage of ownership interest held by the trust | 74.94% | 74.80% | |||
Limited Partner [Member] | |||||
Number of partnership units | shares | 3,185,746 | 3,185,746 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Schedule of Entity Ownership Percentage (Details) | Apr. 30, 2019 | |
Albuquerque Suite Hospitality, LLC [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 20.53% | |
Albuquerque Suite Hospitality, LLC [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | [1] |
Tucson Hospitality Properties, LLLP [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | |
Tucson Hospitality Properties, LLLP [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 51.01% | [1] |
RRF Limited Partnership [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 74.94% | |
RRF Limited Partnership [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | [1] |
InnSuites Hotels Inc. [Member] | Direct Ownership [Member] | ||
IHT OWNERSHIP % | 100.00% | |
InnSuites Hotels Inc. [Member] | Indirect Ownership [Member] | ||
IHT OWNERSHIP % | 0.00% | [1] |
[1] | Indirect ownership is through the Partnership |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Aggregate weighted average shares of beneficial for units of partnership | 3,185,746 | ||
Weighted average incremental shares resulting from unit conversion | 3,185,746 | 3,473,085 | |
Advertising expense | $ 83,000 | $ 206,000 | |
Independent Trustees One [Member] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested shares | 500 | ||
Independent Trustees Two [Member] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested shares | 500 | ||
Independent Trustees Three [Member] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested shares | 500 | ||
3 Independent Trustees [Member] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested shares | 1,500 | ||
90 days [Member] | |||
Percentage of allowance for doubtful accounts | 50.00% | ||
120 days [Member] | |||
Percentage of allowance for doubtful accounts | 100.00% | ||
Restricted Stock [Member] | 3 Independent Members [Member] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 18,000 | 18,000 | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested shares | 4,500 | 4,500 | |
Share-based compensation | $ 8,100 | $ 8,100 | |
Building [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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2019 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | ||
Beginning Balance | $ (5,943) | $ (28,564) |
Discontinued Operations Adjustment | 25,000 | |
Charged to Expense | ||
Deductions | (2,379) | |
Ending Balance | $ (5,943) | $ (5,943) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Accounting Policies [Abstract] | ||
Net Loss attributable to controlling interest | $ (328,854) | $ (652,015) |
Plus: Net Income attributable to non-controlling interests | 59,024 | 362,054 |
Net Loss | $ (269,830) | $ (289,961) |
Weighted average common shares outstanding | 9,362,857 | 9,612,139 |
Plus: Weighted average incremental shares resulting from unit conversion | 3,185,746 | 3,473,085 |
Weighted average common shares outstanding after unit conversion | 12,668,076 | 13,085,223 |
Diluted Loss Per Share | $ (0.02) | $ (0.02) |
Sale of Ownership Interests i_2
Sale of Ownership Interests in Subsidiaries (Details Narrative) - $ / shares | Jul. 19, 2017 | Feb. 15, 2017 | Jan. 31, 2010 | Sep. 15, 2009 | Jan. 05, 2009 | Sep. 10, 2007 | Aug. 18, 2005 | Sep. 10, 2002 | Jan. 02, 2001 | Apr. 30, 2019 | Jan. 31, 2019 |
Number of units were available for sale | 750,000 | 350,000 | 250,000 | 300,000 | 350,000 | 350,000 | 350,000 | 250,000 | |||
Class A [Member] | |||||||||||
Number of units sold during period | 250 | ||||||||||
Class B [Member] | |||||||||||
Number of units sold during period | 200 | ||||||||||
Class B Limited Partnership Units [Member] | |||||||||||
Number of units sold during period | 123.50 | ||||||||||
Albuquerque [Member] | Class A, Class B and Class C [Member] | Minimum [Member] | |||||||||||
Limited liability limited partnership interests | 550 | ||||||||||
Albuquerque [Member] | Class A, Class B and Class C [Member] | Maximum [Member] | |||||||||||
Limited liability limited partnership interests | 600 | ||||||||||
Yuma Entity [Member] | Albuquerque Suite Hospitality, LLC [Member] | |||||||||||
Number of units were available for sale | 10,000 | ||||||||||
Yuma Entity [Member] | Albuquerque Suite Hospitality, LLC [Member] | Class A, Class B and Class C [Member] | |||||||||||
Limited liability limited partnership interests | 800 | ||||||||||
Yuma Entity [Member] | Albuquerque Suite Hospitality, LLC [Member] | Class B Limited Partnership Units [Member] | |||||||||||
Limited liability limited partnership interests | 300 | ||||||||||
Yuma Entity [Member] | Albuquerque Suite Hospitality, LLC [Member] | Class A Limited Partnership Units [Member] | |||||||||||
Limited liability limited partnership interests | 300 | ||||||||||
Albuquerque Suite Hospitality, LLC [Member] | |||||||||||
Percentage of membership interest in a subsidiary committed to purchase by an affiliate | 50.10% | ||||||||||
Albuquerque Suite Hospitality, LLC [Member] | |||||||||||
Sale price per unit | $ 10,000 | ||||||||||
Number of units were available for sale | 10,000 | ||||||||||
Number of units sold during period | 100 | ||||||||||
Percentage of trust held ownership interest | 20.53% | 20.53% | |||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class B Limited Partnership Units [Member] | |||||||||||
Number of units sold during period | 13.50 | ||||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class A Limited Partnership Units [Member] | |||||||||||
Sale price per unit | $ 10,000 | ||||||||||
Number of units sold during period | 15 | ||||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class A Limited Partnership Units [Member] | Other Parties [Member] | |||||||||||
Number of units sold during period | 477 | ||||||||||
Percentage of trust held ownership interest | 79.30% | ||||||||||
Albuquerque Suite Hospitality, LLC [Member] | Class C Limited Partnership Units [Member] | Mr. Wirth and his Affiliates [Member] | |||||||||||
Number of units sold during period | 1 | ||||||||||
Percentage of trust held ownership interest | 0.17% | ||||||||||
Tucson Hospitality Properties LP [Member] | Class B Limited Partnership Units [Member] | |||||||||||
Number of units sold during period | 404 | 404 | |||||||||
Percentage of trust held ownership interest | 51.01% | 51.01% | |||||||||
Tucson Hospitality Properties LP [Member] | Class A Limited Partnership Units [Member] | Other Parties Holders [Member] | |||||||||||
Number of units sold during period | 385 | 385 | |||||||||
Percentage of trust held ownership interest | 48.61% | 48.61% | |||||||||
Tucson Hospitality Properties LP [Member] | Class C Limited Partnership Units [Member] | Mr. Wirth and his Affiliates [Member] | |||||||||||
Number of units sold during period | 3 | 3 | |||||||||
Percentage of trust held ownership interest | 0.38% | 0.38% | |||||||||
Tucson Hospitality Properties LP [Member] | Rare Earth Financial, LLC [Member] | |||||||||||
Cumulative priority distributions per unit per year | $ 700 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment and Hotel Properties - Schedule of Property, Plant and Equipment (Details) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 |
Property, Plant and Equipment, net | $ 9,455,264 | $ 9,532,793 |
Hotel Properties [Member] | ||
Total property, plant and equipment | 16,803,356 | 16,695,493 |
Less accumulated depreciation | (7,511,503) | (7,312,869) |
Property, Plant and Equipment, net | 9,356,438 | 9,426,282 |
Hotel Properties [Member] | Land [Member] | ||
Total property, plant and equipment | 2,500,000 | 2,500,000 |
Hotel Properties [Member] | Building and Improvements [Member] | ||
Total property, plant and equipment | 10,368,761 | 10,334,919 |
Hotel Properties [Member] | Furniture, Fixtures and Equipment [Member] | ||
Total property, plant and equipment | 3,934,595 | 3,860,574 |
Hotel Properties [Member] | Hotel Properties in Service [Member] | ||
Total property, plant and equipment | 9,291,853 | 9,382,625 |
Hotel Properties [Member] | Construction in Progress [Member] | ||
Total property, plant and equipment | 64,585 | 43,657 |
Property, Plant and Equipment [Member] | ||
Total property, plant and equipment | 617,546 | 617,546 |
Less accumulated depreciation | (518,720) | (511,035) |
Property, Plant and Equipment, net | 98,826 | 106,511 |
Property, Plant and Equipment [Member] | Land [Member] | ||
Total property, plant and equipment | 7,005 | 7,005 |
Property, Plant and Equipment [Member] | Building and Improvements [Member] | ||
Total property, plant and equipment | 75,662 | 75,662 |
Property, Plant and Equipment [Member] | Furniture, Fixtures and Equipment [Member] | ||
Total property, plant and equipment | $ 534,879 | $ 534,879 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Tax and Insurance Escrow | $ 21,616 | $ 57,810 |
Deposits | 3,000 | 3,000 |
Prepaid Insurance | 5,000 | 5,000 |
Prepaid Workman's Compensation | 7,465 | 21,459 |
Miscellaneous Prepaid Expenses | 24,895 | 8,284 |
Total Prepaid Expenses and Other Current Assets | $ 61,976 | $ 95,553 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 | [1] |
Payables and Accruals [Abstract] | |||
Accounts Payable | $ 226,306 | $ 166,339 | |
Accrued Salaries and Wages | 229,395 | 251,773 | |
Accrued Vacation | 21,559 | 28,780 | |
Income Tax Payable | 630,330 | 631,130 | |
Accrued Interest Payable | 4,856 | 4,857 | |
Advanced Customer Deposits | 59,858 | 60,322 | |
Accrued Property Taxes | 90,236 | 79,516 | |
Accrued Land Lease | 161,856 | 161,856 | |
Sales Tax Payable | 251,607 | 114,753 | |
Deferred Revenue | 31,240 | 31,239 | |
Accrued Other | 131,142 | 108,238 | |
Total Accounts Payable and Accrued Expenses | $ 1,838,425 | $ 1,638,803 | |
[1] | Includes current liabilities of discontinued operations. |
Mortgage Notes Payable (Details
Mortgage Notes Payable (Details Narrative) - USD ($) | Jun. 29, 2017 | Apr. 30, 2019 | Jan. 31, 2019 |
Debt instrument maturity description | The mortgage notes payable has various repayment terms and have scheduled maturity dates ranging from August 2022 to June 2042. | ||
Mortgage notes payable interest rate | 4.85% | 4.85% | |
Notes payable | $ 4,793,768 | $ 4,824,692 | |
Mortgage note payable monthly installments | $ 28,493 | ||
Debt instrument interest rate | 7.00% | 7.00% | |
Mortgage loan face amount | $ 7,600,000 | $ 7,600,000 | |
Debt instrument maturity date | Jun. 19, 2042 | ||
Business Loan Agreement [Member] | |||
Mortgage loan face amount | $ 4,794,000 | 4,825,000 | |
Mortgage facility amount | $ 5,000,000 | ||
Refinancing mortgage facility amount | $ 3,045,000 | ||
Debt instrument maturity date | Jun. 19, 2042 | ||
Debt instrument discount | $ 5,000 | $ 5,000 | |
Business Loan Agreement [Member] | Interest Floor Rate [Member] | |||
Debt instrument interest rate | 4.69% | ||
Business Loan Agreement [Member] | Prime Rate [Member] | |||
Debt instrument interest rate | 2.00% | ||
June 19, 2042 [Member] | |||
Debt instrument interest rate | 4.69% |
Lines of Credit - Related Par_2
Lines of Credit - Related Party (Details Narrative) - USD ($) | Dec. 01, 2014 | Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 |
Note receivable - related party | $ 632,027 | $ 632,027 | ||
Interest income, related party | 1,970 | |||
Rare Earth Financial, LLC [Member] | ||||
Line of credit increased maximum borrowing capacity | $ 1,000,000 | 1,000,000 | ||
Line of credit interest rate | 7.00% | |||
Line of credit maturity date | Dec. 31, 2019 | |||
Note receivable - related party | 632,000 | 632,000 | ||
Accrued interest | 632,000 | $ 632,000 | ||
Interest income, related party | $ 844 | $ 3,632 |
Other Notes Payable (Details Na
Other Notes Payable (Details Narrative) - USD ($) | Jun. 20, 2016 | Apr. 30, 2019 | Jan. 31, 2019 | Mar. 20, 2017 | Dec. 05, 2016 |
Notes payable outstanding to unrelated third parties | $ 4,793,768 | $ 4,824,692 | |||
Stock repurchased during period, shares | 266,894 | ||||
Debt instrument interest rate | 7.00% | 7.00% | |||
Debt instrument, maturity date | Jun. 19, 2042 | ||||
Debt instrument maturity date description | The mortgage notes payable has various repayment terms and have scheduled maturity dates ranging from August 2022 to June 2042. | ||||
Debt instrument face amount | $ 7,600,000 | $ 7,600,000 | |||
Eight Unsecured Loans [Member] | |||||
Unsecured loan | $ 425,000 | ||||
Hayden Loan [Member] | |||||
Debt instrument interest rate | 4.50% | ||||
Unsecured loan | $ 270,000 | ||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||
Debt instrument face amount | $ 270,000 | ||||
Sweitzer Loans [Member] | |||||
Debt instrument interest rate | 4.00% | ||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||
Debt instrument face amount | $ 100,000 | $ 100,000 | |||
Hayes Trust Loan [Member] | |||||
Debt instrument, maturity date | Jul. 1, 2019 | ||||
Debt instrument face amount | $ 425,000 | ||||
Individual Lender [Member] | |||||
Notes payable outstanding to unrelated third parties | $ 100,000 | ||||
Debt instrument interest rate | 7.00% | ||||
Debt instrument, maturity date | Jun. 30, 2021 | ||||
Debt instrument maturity date description | As of July 1, 2019 the note has been extended until June 30, 2021 at 4.5% interest only with similar terms. | ||||
Class A Partnership Units [Member] | |||||
Notes payable outstanding to unrelated third parties | $ 440,000 | ||||
Stock repurchased during period, shares | 82,588 | ||||
Debt due date | 2020-07 |
Minimum Debt Payments - Schedul
Minimum Debt Payments - Scheduled of Minimum Payments of Debt (Details) | Jan. 31, 2019USD ($) |
Remainder of 2020 | $ 1,531,000 |
2021 | 458,000 |
2022 | 183,000 |
2023 | 130,000 |
2024 | 135,000 |
Thereafter | 4,197,000 |
Long term debt | 6,634,000 |
Mortgages [Member] | |
Remainder of 2020 | 86,000 |
2021 | 119,000 |
2022 | 127,000 |
2023 | 130,000 |
2024 | 135,000 |
Thereafter | 4,197,000 |
Long term debt | 4,794,000 |
Notes Payable Related Parties [Member] | |
Remainder of 2020 | 268,000 |
2021 | 137,000 |
2022 | |
2023 | |
2024 | |
Thereafter | |
Long term debt | 405,000 |
Other Notes Payable [Member] | |
Remainder of 2020 | 1,177,000 |
2021 | 202,000 |
2022 | 56,000 |
2023 | |
2024 | |
Thereafter | |
Long term debt | $ 1,435,000 |
Description of Beneficial Int_2
Description of Beneficial Interests (Details Narrative) - shares | Jul. 19, 2017 | Jan. 31, 2010 | Sep. 15, 2009 | Jan. 05, 2009 | Sep. 10, 2007 | Aug. 18, 2005 | Sep. 10, 2002 | Jan. 02, 2001 | Apr. 30, 2019 | Apr. 30, 2018 |
Number of units were available for sale | 750,000 | 350,000 | 250,000 | 300,000 | 350,000 | 350,000 | 350,000 | 250,000 | ||
Stock repurchased during period, shares | 266,894 | |||||||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 1.77 | 1.92 | ||||||||
Stock repurchase program, number of shares authorized to be repurchased | 411,776 | |||||||||
Shares of Beneficial Interest [Member] | ||||||||||
Stock repurchased during period, shares | 32,732 | 149,603 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Dec. 22, 2015 | Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Revenue | $ 2,093,018 | $ 1,863,840 | |||
Yearly salary | $ 229,395 | $ 251,773 | [1] | ||
Debt instrument, maturity date | Jun. 19, 2042 | ||||
Notes accrue interest rate, percentage | 7.00% | 7.00% | |||
Interest income | $ 1,970 | ||||
Trust [Member] | |||||
Revenue | 65,312 | ||||
Advances to affiliate | $ 1,000,000 | ||||
Notes accrue interest rate, percentage | 7.00% | ||||
Ms. Barnhill [Member] | |||||
Compensation amount | $ 0 | $ 40,945 | |||
Tempe/Phoenix Airport Resort LLC [Member] | |||||
Advances to affiliate | $ 500,000 | ||||
Percentage of advances affiliate owns | 42.00% | ||||
Debt instrument, maturity date | Dec. 31, 2019 | ||||
Notes accrue interest rate, percentage | 7.00% | ||||
Lending from affiliate | $ 986,361 | ||||
General Partner [Member] | |||||
Partnership ownership interest percentage | 74.94% | 74.94% | |||
InnSuites Hotel Located In Tucson [Member] | |||||
Partnership ownership interest percentage | 51.01% | ||||
Mr. Wirth and Affiliates [Member] | |||||
Number of shares held for beneficial interest of trust | 5,881,683 | 5,881,683 | |||
Percentage of shares issued and outstanding of beneficial interest | 62.93% | 62.84% | |||
Yearly salary | $ 36,000 | ||||
Mr. Wirth and Affiliates [Member] | Class B Partnership Units [Member] | |||||
Number of partnership unit held for affiliates | 2,974,038 | 2,974,038 | |||
Percentage of outstanding partnership units | 23.39% | 23.39% | |||
Innsuites Hotel Located in Albuquerque New Mexico [Member] | |||||
Partnership ownership interest percentage | 20.53% | ||||
IBC Hotels [Member] | Mr. Wirth and Affiliates [Member] | |||||
Percentage of room revenue received from hotels owned by affiliates | 5.00% | ||||
Related party, monthly accounting fee | $ 2,000 | ||||
Agreement term description | 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. | ||||
[1] | Includes current liabilities of discontinued operations. |
Statements of Cash Flows, Sup_2
Statements of Cash Flows, Supplemental Disclosures (Details Narrative) - USD ($) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 122,902 | $ 177,313 |
Notes Payables - IHT Shares of Beneficial Interest and Partnership Units repurchases | $ 189,320 | $ 113,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Restricted cash | $ 0 | $ 0 | |
Membership fees and reservation amount | $ 42,000 | $ 63,000 | |
Tucson Oracle Property [Member] | |||
Percentage of deposit used for capital expenditures | 4.00% |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | Aug. 04, 2017 | Apr. 30, 2019 |
Leases [Abstract] | ||
Operating leases, rent expense | $ 4,100 | |
Operating leases, rent yearly increase percentage | 6.00% | |
Operating leases, early termination fee, year one | $ 12,000 | |
Operating leases, early termination fee, year two | 8,000 | |
Operating leases, early termination fee, year three | 6,000 | |
Operating leases, early termination fee, year four | 4,000 | |
Operating leases, early termination fee, year five | $ 2,000 | |
Operating leases, expiration date | Dec. 31, 2058 | |
Operating leases, description | The Company's Tucson, Arizona hotel property leases satellite television equipment for all of its 159 rooms and common areas. The lease commenced in November 2018 and expires 5 years from the date of commencement. |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) | 3 Months Ended | |
Apr. 30, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 64,334 | [1] |
[1] | Short term lease costs were immaterial. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information for Lease (Details) | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 57,985 |
Operating leases, net | $ 2,791,249 |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments for Right-of-use Assets (Details) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 |
Leases [Abstract] | ||
Remaining in 2020 | $ 173,956 | |
2021 | 231,941 | |
2022 | 231,941 | |
2023 | 208,829 | |
2024 | 168,691 | |
Thereafter | 5,050,859 | |
Total minimum lease payments | 6,066,217 | |
Less: amount representing interest | 3,210,634 | |
Total present value of minimum payments | 2,855,583 | |
Less: current portion | 98,117 | |
Long-term obligations | $ 2,757,466 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Apr. 30, 2019 |
Leases [Abstract] | |
Operating leases, Weighted average remaining lease term (years) | 34 years 9 months 22 days |
Operating leases, Weighted average discount rate | 4.76% |
Share-Based Payments (Details N
Share-Based Payments (Details Narrative) | 3 Months Ended |
Apr. 30, 2019USD ($)shares | |
Number of restricted shares issued, value | $ | $ 8,100 |
1997 Stock Incentive and Option Plan [Member] | |
Stock options expiration period | 10 years |
Options granted | 0 |
Options outstanding | 0 |
Options available to grant | 1,000,000 |
Class A and B Limited Partnership Units [Member] | |
Percentage of shares of beneficial interest and partnership unit | 10.00% |
Shares Vest in Equal Monthly Amounts [Member] | 2020 [Member] | |
Number of restricted shares vested | 18,000 |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - USD ($) | Oct. 24, 2018 | Aug. 14, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 |
Debt instrument, principal amount | $ 7,600,000 | $ 7,600,000 | |||
Debt instrument interest rate | 7.00% | 7.00% | |||
Maturity date | Jun. 19, 2042 | ||||
Discontinued Operations [Member] | |||||
Number of sale of property amount | $ 250,000 | $ 3,000,000 | $ 100,000 | ||
Debt instrument, principal amount | $ 2,750,000 | ||||
Debt instrument interest rate | 3.75% | ||||
Interest payment percentage | 50.00% | ||||
Interest payment per month | $ 25,632 | ||||
Working capital per month | $ 100,000 | ||||
Debt default payment, description | If Buyer has not paid two or more payments on the note as scheduled, or if Buyer has not satisfied any other provisions in the note, IHT may give Buyer notice of default. If Buyer fails to cure the default within 30 days after notice (a) on or before February 5, 2020, then 75% of the issued and outstanding IBC interest shall be transferred to IHT, and (b) on or after February 5, 2020, then 51% of the issued and outstanding interest of the Company shall be transferred to IHT. | ||||
Discontinued Operations [Member] | Yuma Hotel Property [Member] | |||||
Sales price of assets | $ 16,050,000 | ||||
Net proceeds from sale of property | $ 9,930,000 | ||||
Discontinued Operations [Member] | IBC Hotels, LLC [Member] | |||||
Proceeds from related party | $ 2,500,000 | ||||
Percentage of proceeds by related party | 50.00% | ||||
Percentage of unpaid note | 50.00% | ||||
Discontinued Operations [Member] | 59 Months [Member] | |||||
Interest payment per month | $ 52,054 | ||||
Maturity date | Jun. 30, 2024 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Future Payments on Notes (Details) | Apr. 30, 2019USD ($) |
Discontinued Operations and Disposal Groups [Abstract] | |
2020 | $ 229,167 |
2021 | 550,000 |
2022 | 550,000 |
2023 | 550,000 |
2024 | 550,000 |
Thereafter | 320,833 |
Total | $ 2,750,000 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
CONSOLIDATED NET LOSS OF DISCONTINUED OPERATIONS | $ (309,228) | |
Yuma [Member] | ||
TOTAL REVENUE | 1,611,440 | |
Room | 301,058 | |
Food and Beverage | 16,592 | |
Telecommunications | 8,229 | |
General and Administrative | 477,436 | |
Sales and Marketing | 319,948 | |
Reservation Acquisition Costs | 351,574 | |
Repairs and Maintenance | 59,481 | |
Hospitality | 63,993 | |
Utilities | 43,451 | |
Depreciation | 172,574 | |
Real Estate and Personal Property Taxes, Insurance and Ground Rent | 18,886 | |
Other | 4,076 | |
TOTAL OPERATING EXPENSES | 1,837,298 | |
OPERATING LOSS | (225,858) | |
Interest on Mortgage Notes Payable | 67,666 | |
Interest on Notes Payable to Banks | 3,148 | |
Interest on Other Notes Payable | 12,556 | |
TOTAL INTEREST EXPENSE | 83,370 | |
CONSOLIDATED NET LOSS OF DISCONTINUED OPERATIONS | (309,228) | |
Yuma [Member] | Room [Member] | ||
TOTAL REVENUE | 1,276,105 | |
Yuma [Member] | Food and Beverage [Member] | ||
TOTAL REVENUE | 12,540 | |
Yuma [Member] | Reservation and Convention [Member] | ||
TOTAL REVENUE | 311,242 | |
Yuma [Member] | Other [Member] | ||
TOTAL REVENUE | $ 11,553 |
Stock Options (Details Narrativ
Stock Options (Details Narrative) | Feb. 05, 2015shares |
Board of Trustees [Member] | 2015 Equity Incentive Plan [Member] | |
Shares of beneficial interest of trust are authorized to issued | 1,600,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Apr. 30, 2019 | Jan. 31, 2019 |
Trust [Member] | ||
Accured interest and penalties | $ 200,000 | $ 200,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Jul. 01, 2019 | Jun. 25, 2019 | May 31, 2019 | May 30, 2019 | Jun. 20, 2016 | Apr. 30, 2019 | Jul. 08, 2019 | Jan. 31, 2019 | Mar. 20, 2017 |
Stock repurchased during period, shares | 266,894 | ||||||||
Debt instrument face amount | $ 7,600,000 | $ 7,600,000 | |||||||
Debt instrument interest rate | 7.00% | 7.00% | |||||||
Debt instrument maturity date | Jun. 19, 2042 | ||||||||
Hayden Loan [Member] | |||||||||
Debt instrument face amount | $ 270,000 | ||||||||
Debt instrument interest rate | 4.50% | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | ||||||||
Sweitzer Loans [Member] | |||||||||
Debt instrument face amount | $ 100,000 | $ 100,000 | |||||||
Debt instrument interest rate | 4.00% | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | ||||||||
Individual Lender [Member] | |||||||||
Debt instrument interest rate | 7.00% | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | ||||||||
Trust [Member] | |||||||||
Stock repurchased during period, shares | 15,503 | ||||||||
Debt instrument interest rate | 7.00% | ||||||||
Stock repurchased during period, value | $ 25,000 | ||||||||
Subsequent Event [Member] | |||||||||
Description for annual dividend | On May 30, 2019 the Trust's Board of Trustees approved a one cent semi-annual dividend, payable on July 31, 2019, on shares held of record a July 19, 2019. This continues the Trust's recent practice of paying total annual dividends of two cents per share, payable one cent each semi-annually on July 31 and January 31. | ||||||||
Stock repurchased during period, shares | 750,000 | ||||||||
Subsequent Event [Member] | Hayes Trust [Member] | |||||||||
Due to related parties | $ 425,000 | ||||||||
Subsequent Event [Member] | Previously Authorized but Unused Shares Repurchased [Member] | |||||||||
Stock repurchased during period, shares | 200,000 | ||||||||
Subsequent Event [Member] | Verbal Agreement [Member] | Hayden Loan [Member] | |||||||||
Debt instrument face amount | $ 270,000 | ||||||||
Debt instrument interest rate | 4.50% | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | ||||||||
Subsequent Event [Member] | Verbal Agreement [Member] | Sweitzer Loans [Member] | |||||||||
Debt instrument face amount | $ 100,000 | ||||||||
Debt instrument interest rate | 4.00% | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | ||||||||
Subsequent Event [Member] | Verbal Agreement [Member] | Individual Lender [Member] | |||||||||
Debt instrument face amount | $ 200,000 | ||||||||
Debt instrument interest rate | 4.50% | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | ||||||||
Subsequent Event [Member] | Albuquerque Hotel [Member] | |||||||||
Proceeds from sale of hotel | $ 7,500,000 | ||||||||
Sale of property expired date | Apr. 30, 2019 | ||||||||
Subsequent Event [Member] | Tucson Hotel [Member] | |||||||||
Proceeds from sale of hotel | $ 15,800,000 | ||||||||
Sale of property, description | Real estate broker who successfully sold four other InnSuites hotels in the past three years |