InnSuites' Operating Income Down

InnSuites Hotels are affected by the economic conditions being felt industry wide.

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. December 17, 2008

DECEMBER 17, 2008 - InnSuites Hospitality Trust (AMEX:IHT) Summary of Third Quarter:

• InnSuites Hotels are affected by the economic conditions being felt industry wide.

• InnSuites reclassified its hotels from "held for sale" to "held and used" resulting in a reduction of income after recording catch-up depreciation expense of $1.9 million in the third fiscal quarter.

• Operating income after the $1.9 million depreciation catch-up declined $2.2 million, or 90%, to $259,000 for the first nine months of fiscal year 2009 ended October 31, 2008 compared to the nine-month period ended October 31, 2007.

InnSuites Hospitality Trust reported operating income of $259,000 for the first nine months of fiscal year 2009 ended October 31, 2008, a decline of $2.2 million, or 90%, from the prior year nine-month period operating income of $2.5 million. This decrease was due to the current economic recession and the reclassification of the Trust's hotel properties from "held for sale" to "held and used" in the third fiscal quarter ended October 31, 2008. As a result of this reclassification, the Trust recorded $1.9 million in previously suspended depreciation expense in the third fiscal quarter ended October 31, 2008.

For the nine-month period ended October 31, 2008, the Trust reported a net loss attributable to Shares of Beneficial Interest of $645,000, or $(0.07) per basic and diluted share, down from net income attributable to Shares of Beneficial Interest of $1.1 million, or $0.12 per basic share and $0.08 per diluted share for the prior year nine-month period.

The fiscal third quarter (August 1 to October 31, 2008) results for InnSuites Hospitality Trust show operating income down to a loss attributable to Shares of Beneficial Interest of $(2.4 million) from income attributable to Shares of Beneficial Interest of $1.1 million during the prior year comparable three-month period. Basic and diluted loss per share was $(0.25), down from $0.06 income per share basic and $0.4 income per share diluted in the prior year three-month period, showing the effects of the economic recession and the recording of the catch-up depreciation in the fiscal third quarter as a result of reclassifying the Trust's hotels from "held for sale" to "held and used."

For the remainder of the current fiscal year, InnSuites anticipates increased competition driving lower occupancy levels due to the current economic conditions. However, InnSuites is experiencing strength relative to the rest of the industry with the continuation of refurbishing, boutique fashion trends, as well as tightened cost control and internet marketing as more and more travelers move to the value-oriented InnSuites Suite Hotels and value suite concept "By the day and extended stay."

Management believes the current share price does not fully reflect the underlying value of assets. InnSuites continues to seek methods to increase shareholder value, including potential asset dispositions.