InnSuites Hospitality Trust (IHT) Reports Second Quarter Improvement

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. October 14, 2008

InnSuites Hospitality Trust Highlights:

• Operating income for the six months ended July 31, 2005 was $532,000, an improvement from $287,000 in the prior year. * After including non-cash depreciation of $527,000, the second quarter reported loss attributable to Shares of Beneficial Interest narrowed for the three months ended July 31, 2005, totaling $(597,000), or $(0.07) per basic share, compared to $(935,000), or $(0.40) per basic share, in the prior year period. Second quarter operating loss also narrowed to $(377,000) from $(734,000). * Second quarter Trust revenue totaled $4.9 million for the three months ended July 31, 2005, a decrease of 1.4% from the prior year period. * The Trust sold its Phoenix, Arizona property for $5.1 million, which was $1.8 million higher than its carrying value after selling costs, resulting in an increase of $1.3 million, or $0.14 per share, to shareholders' equity.

InnSuites Hospitality Trust reported operating income for the six months ended July 31, 2005 of $532,000, an improvement from $287,000 in the prior year period. Operating income is income before interest revenue and expense, income taxes and gains on the disposition of hotel properties. The Trust reported a net loss, including non-cash depreciation of $1,044,000, attributable to Shares of Beneficial Interest of $(182,000), or $(0.02) per basic and diluted share, for the six months ended July 31, 2005, compared to net income, including non-cash depreciation of $1,410,000, of $1.1 million, or $0.51 per basic and $0.40 per diluted share, in the prior year period. The prior year period included gains on the disposition of hotels totaling $5.1 million. The portion of those gains attributable to Trust shareholders was $2.9 million, or $1.28 per basic and $0.36 per diluted share. The prior year period also included a charge of $854,000, or $(0.38) per basic and $(0.11) per diluted share, for the cumulative effect of adopting FIN 46R.

The Trust also reported a second quarter operating loss for the three months ended July 31, 2005 of $(377,000), an improvement from $(734,000) in the prior year period. The Trust reported a net loss, including non-cash depreciation of $527,000, attributable to Shares of Beneficial Interest of $(597,000), or $(0.07) per basic and diluted share, for the three months ended July 31, 2005 compared to a net loss, including non-cash depreciation of $657,000, of $(935,000), or $(0.40) per basic diluted share, in the prior year period. This improvement in operating results reflects the continued positive effects of the Trust's previous disposal of underperforming hotels, as well as the additional income from the Trust's management and licensing contracts.

The Trust reported total revenue of $4.9 million for the quarter ended July 31, 2005, a decrease of $70,000 or 1.4% from the prior year period.

On July 28, 2005, the Trust sold its Phoenix, Arizona hotel for its appraised value of $5.1 million, which was $1.8 million above its carrying value after selling costs. The buyer was an affiliate of James Wirth, President and CEO of the Trust and Chairman of the Board of Trustees. The sale resulted in an increase in shareholders' equity of approximately $1.3 million. Due to the relation between the Trust and Mr. Wirth, the $1.8 million gain was not recorded in the Trust's earnings for the six months ended July 31, 2005. If that gain had been included in the Trust's earnings, it would have added $1.2 million, or $0.14 per basic share, to Trust earnings.

Improving Trend

The Trust's hotel operations continue to recover from the recent difficulties in the travel and hospitality industries. The Trust also continues to benefit from the disposal of underperforming properties during the prior two fiscal years. The Trust's management and trademark licensing agreements, acquired during fiscal year 2005, have been a profitable area for its shareholders. Although the Trust has benefited in these areas, it continues to take aggressive steps to cut costs and increase sales, as well as evaluate the performance of the hotels in its portfolio.

Your Suite Choice(R) -- Value Concept

InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality business trust owning 5 moderate service and full service hotels containing 843 hotel suites and managing and/or licensing 11 hotels with 1,692 suites located in Arizona, New Mexico, Texas and Southern California. For reservations, call 1-888-INNSUITES, or visit http://www.innsuites.com/. For investor information, visit http://www.innsuitestrust.com/.

Certain matters within this press release may be discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Act and InnSuites Hospitality Trust intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to: (i) expectations of growth in the financial and operating results of the Trust, (ii) expectations of reductions in costs incurred by the Trust, (iii) expectations to refinance or dispose of individual hotels, and (iv) expectations that the travel and hospitality industries will rebound in the near future. InnSuites Hospitality Trust cautions that these statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements contained herein. Such risks include, but are not limited to: a) fluctuations in hotel occupancy rates, b) changes in room rental rates which may be charged by InnSuites Hotels in response to market rental rate changes or otherwise, c) interest rate fluctuations, d) changes in federal income tax laws and regulations, e) competition, f) any changes in the Trust's financial condition or operating results due to acquisitions or dispositions of hotel properties, g) real estate and hospitality market conditions, h) hospitality industry factors, i) terrorist attacks or other acts of war, j) outbreaks of communicable diseases, k) natural disasters, and l) local or national economic and business conditions, including, without limitation, conditions which may affect public securities markets generally, the hospitality industry or the markets in which the Trust operates or will operate. From time to time, these and other risks are discussed in the Trust's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.