InnSuites Hospitality Trust (IHT): Business Model Canvas [Dec-2025 Updated]

You're looking at InnSuites Hospitality Trust (IHT) and trying to map out a business model that's clearly in transition, which is definitely not your typical REIT setup. Honestly, when you see their FY 2025 results-total revenue hitting $7,594,000, mostly from just two hotels-the real question becomes how they are funding that legendary 55-year dividend streak while actively trying to sell off their core real estate and pivot toward clean energy investments like UniGen Power. This Business Model Canvas cuts through the noise, showing you the exact partnerships, costs, and revenue streams underpinning this unique, asset-disposition strategy, so you can see precisely where the near-term risk and potential upside lie.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep the InnSuites Hospitality Trust (IHT) engine running, especially as the Trust pivots toward an asset-light structure. These aren't just handshake deals; they involve specific financial commitments and ownership stakes that materially affect the bottom line.

The relationship with Best Western is foundational for the two owned hotels in Tucson, Arizona, and Albuquerque, New Mexico. Both properties operate under Best Western membership agreements, which also means IHT incurs specific brand-related costs. For the six months ended July 31, 2025, the expense related to BW Rewards Guest Vouchers-those free-night redemptions-hit $66,358 for that period alone. Remember, this is a direct, measurable cost tied to the branding partnership.

The diversification play with UniGen Power Inc. represents a high-risk, high-reward strategic partnership. IHT's total exposure is significant, comprising a $1,000,000 convertible debenture and an additional $668,750 in equity exposure, classifying it as a material level-3 investment as of mid-2025. To be fair, that $1 million debenture has been delinquent on interest payments for three consecutive quarters leading up to June 2025. Still, if warrants were fully exercised, IHT could potentially hold up to a 15-20% ownership stake in UniGen Power Inc.

The management structure relies heavily on RRF LLLP, which is IHT's majority-owned subsidiary, specifically a 76% owned subsidiary. RRF LLLP manages the daily operations of the Trust's two hotels. The fee structure is explicit: management fees are set at 5% of room revenue, plus a monthly accounting fee of $2,000 per hotel. This arrangement is key to the asset-light strategy, as RRF LLLP handles the operational burden.

A newer, related-party partnership involves IBC Hotels, LLC (InnDependent Boutique Collection). After an entity owned by the chairman and family of IHT's majority shareholder purchased IBC Hotels, LLC on March 5, 2025, RRF LLLP was immediately engaged on March 7, 2025, to manage its rebirth. IHT holds a five-year option to purchase IBC Hotels, LLC at cost. This relationship is also reflected on the balance sheet via a note receivable related to a prior transaction, which stands at $1,925,000 and has been extended to mature on June 30, 2030, with interest payable only at maturity.

Here's a quick look at the financial mechanics of the primary management and investment relationships:

The operational dependency on RRF LLLP means that the 5% of room revenue management fee is a direct variable cost tied to top-line hotel performance. For context, IHT's total revenue for the six months ended July 31, 2025, was approximately $4,004,635.

You should track the following key elements from these partnerships:

• The status of the $1,000,000 UniGen convertible debenture interest payments.
• The cost basis for the IBC Hotels, LLC purchase option.
• The total room revenue generated by the two Trust Hotels to calculate the RRF LLLP management fee.
• The impact of the $66,358 BW Rewards voucher expense on gross margins.

Finance: draft 13-week cash view by Friday.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Key Activities

You're looking at the core actions InnSuites Hospitality Trust (IHT) is taking right now to manage its assets and pivot its strategy. It's a mix of running the existing business while actively trying to sell it off.

Hotel ownership and daily operations in two Southwest US locations.

IHT is still running the Tucson and Albuquerque hotels, though the focus is clearly shifting away from ownership. For the six months ended July 31, 2025, total revenue was reported at approximately $4,004,635, which was down 3% compared to the prior year's $4,134,362 for the same period. The management company, RRF LLLP, which is a 76% owned subsidiary of IHT, has taken on the management of IBC Hotels, LLC.

Here's a look at the operational metrics around the middle of 2025:

The company reported a consolidated net loss of $(361,989) for the six months ended July 31, 2025.

Providing hotel management and trademark licensing services.

IHT's management company, RRF LLLP, is now managing the InnDependent Boutique Collection (IBC Hotels, LLC). This engagement includes a five-year option to purchase IBC Hotels, LLC at cost.

Actively seeking buyers for the two remaining hotel properties.

Management is actively marketing both hotel properties. The internal Estimated Market Asking Price totals $28 million, broken down as Albuquerque at $9.5 million and Tucson at $18.5 million. This compares to the book hotel net value of approximately $6.83 million. The strategic plan involves selling these properties within 36 months, targeting that $28 million figure. The outstanding mortgage balances are around $8.9M.

Managing the investment portfolio, specifically UniGen Power.

InnSuites Hospitality Trust maintains its diversification investment in UniGen Power Inc.. The current material investment includes a $1,000,000 convertible debenture and $668,750 in equity. If warrants are fully exercised, IHT could hold an ownership stake of up to 15-20% in UniGen Power. The $1 million convertible note receivable had interest payments delinquent for three consecutive quarters.

Implementing cost-cutting measures, like reducing insurance expense.

Cost-cutting is a major focus, which helped narrow the operating loss significantly.

• The annualized insurance costs for the Tucson Hotel were reduced by approximately $350,000.
• The new annualized insurance expense for Fiscal Year 2026 is projected to be about $100,000, down from approximately $450,000 in Fiscal Year 2025.
• In the first quarter of 2025, overall operating expenses decreased by 6%.
• General and Administrative expenses saw a substantial reduction of 23% in Q1 2025.

The company ended the six-month period on July 31, 2025, with cash on hand of $206,941.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Key Resources

You're looking at the core assets InnSuites Hospitality Trust (IHT) relies on to run its business as of late 2025. These aren't just line items; they are the tangible and intangible foundations of the Trust's operations and diversification strategy.

The physical assets are centered around the two owned moderate-service hotel properties, which together offer an aggregate of 270 hotel suites as of January 31, 2025. These properties are located in Tucson, Arizona, and Albuquerque, New Mexico. The operational performance of these assets is a key resource, as shown by the recent occupancy and rate data for the first half of Fiscal Year 2026.

The brand itself is a resource. InnSuites Hospitality Trust provides trademark and licensing services, and the InnSuites trademark is licensed for use across five hotels, in addition to the two owned properties which are also branded as InnSuites Hotels and Suites and hold membership agreements with Best Western. The total assets on the books are substantial, though the company is actively pursuing a strategy to capitalize on real estate equity, planning to potentially sell its hotels at market value over the next 36 months. As of July 31, 2025, Total Assets stood at $14,197,704 against Total Liabilities of $13,999,091, leaving Total Equity at $198,613.

A significant non-core resource is the diversification investment in UniGen Power Inc. (UniGen). IHT holds a material level-3 investment here, comprising a $1,000,000 convertible debenture, $668,750 in equity, and warrants. If fully exercised, this could translate to an ownership stake of up to approximately 15-20% in UniGen.

The Trust maintains a long-term commitment to shareholders, evidenced by its dividend history.

• 55 consecutive years of uninterrupted annual dividends, dating back to its initial NYSE listing in 1971.
• The most recent semi-annual dividend declared was $0.01 per share, payable on August 7, 2025.
• The forward annual dividend payout is currently set at $0.02 per share.

Other financial resources supporting operations include the cash on hand, which was $206,941 as of July 31, 2025, and a large Employee Retention Credit receivable balance of $1,233,527 on the balance sheet.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Value Propositions

You're looking at the core value InnSuites Hospitality Trust (IHT) delivers to its customers and investors as of late 2025. It centers on reliable, mid-range lodging supported by shareholder returns and future-facing investments.

Moderate-service lodging in key Southwest US markets

InnSuites Hospitality Trust provides lodging services, with hotel operations showing specific financial metrics for the Fiscal Year 2025 ended January 31, 2025. Total Revenues for that fiscal year reached approximately $7.6 million. You see the Tucson and Albuquerque Hotels performing well, generating around $1.6 million combined in February and March of 2025, which covers the first two months of the current fiscal year. For the First Fiscal Half of 2026, covering February 1, 2025, to July 31, 2025, Total Revenue was approximately $4,004,635.

Operational improvements are evident in the metrics from Fiscal Year 2025:

• The Combined Hotel Average Daily Rate (ADR) increased by $2.22.
• This ADR increase represents a 2.28% jump from the prior Fiscal Year.
• Combined Revenue Per Available Room (REVPAR) improved by $0.36.
• That REVPAR improvement equates to a 0.49% gain.

Complimentary guest amenities like breakfast and social hours

The value proposition includes specific guest perks that enhance the moderate-service offering. While the exact cost of these amenities isn't broken out, operational efficiencies support their continued provision. For instance, annualized insurance costs saw a significant reduction, dropping from $450,000 down to approximately $100,000, resulting in savings of about $350,000 for the current Fiscal Year. This focus on cost control helps maintain the value package. The amenities provided include:

• Complimentary breakfast service.
• Complimentary social hours for guests.
• Management by RRF LLLP, a subsidiary of InnSuites Hospitality Trust.

Shareholder value via uninterrupted semi-annual dividends

InnSuites Hospitality Trust maintains a commitment to its shareholders through consistent dividend payments. The company announced a semi-annual dividend of $0.0100 per share on July 9, 2025, payable on August 7, 2025, to shareholders of record as of July 25, 2025. This continues an uninterrupted 55-year history of annual dividends. The annual dividend equates to $0.02 per share, with a reported yield around 1.55% to 1.56% as of late 2025.

Here's a quick look at the recent dividend schedule:

Potential long-term growth from clean energy diversification

A key element of the long-term value proposition is the diversification investment made in late 2019 into UniGen Power, Inc. (UniGen), which develops clean energy generation innovation. InnSuites Hospitality Trust holds convertible bonds and warrants in UniGen. If fully exercised, these instruments could result in InnSuites Hospitality Trust holding an ownership stake of approximately up to 15-20% or more in UniGen. Management points to the high profit potential ahead from this clean energy diversification as a reason for optimism, especially given projections that electricity demand may approximately double over the next five years due to data centers and electric cars.

The company is also actively managing its hotel portfolio through its subsidiary, RRF LLLP, which obtained a five-year option to purchase, at cost, IBC Hotels, LLC, following its purchase by an affiliated entity in March 2025.

For context on the overall financial picture as of the reporting dates, consider these figures:

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Customer Relationships

You're looking at how InnSuites Hospitality Trust (IHT) manages its relationship with guests and owners right now, based on their latest filings as of late 2025. It's a mix of brand affiliation, direct transactions, and formal shareholder governance.

Transactional hotel bookings via direct and third-party channels

The core relationship is transactional, driven by stays at the 270 hotel suites across the two hotels in Arizona and New Mexico, which operate under the federally trademarked "InnSuites" name and the "Best Western" brand name. The performance metrics show the volume and value coming through these channels.

The Average Daily Rate (ADR) saw a modest increase, which is a good sign for pricing power in the market.

• Fiscal 2025 Combined Hotel Average Daily Rate (ADR) increase: 2.28%

Loyalty program participation through Best Western Rewards

InnSuites Hospitality Trust is tied to the Best Western ecosystem, which means participation in the Best Western Rewards loyalty program is a key part of the guest relationship, even if the specific direct booking percentage isn't public. We know the relationship has a financial impact recognized in the books.

• The financial reporting for the 2026 First Fiscal Half accounted for a non-cash expense related to Best Western Rewards Guest Vouchers.
• Best Western Hotels & Resorts, part of BWH Hotels, continues to bolster its loyalty program, which is recognized as award-winning.
• The parent brand was recognized as one of the World's Best Brands 2025 by TIME, based on a survey of over 90,000 consumers.

Direct engagement with shareholders regarding dividends and strategy

The relationship with shareholders is formalized through annual meetings and consistent dividend policy, showing a commitment to capital return despite a recent net loss in Fiscal Year 2025.

The Board of Trustees actively communicates through filings and meetings, as seen in the 2025 Annual Meeting results.

• Semi-annual dividend declared: $0.01 per share.
• This payment continues an uninterrupted 55-year history of annual dividends.
• Shares present at the August 14, 2025, Annual Meeting: 7,172,442 (in person or by proxy).
• Total Shares issued and outstanding as of the July 3, 2025, record date: 8,763,485.
• Shareholder approval for re-election of Board of Trustee Members exceeded 95% of Shares Voted.
• Shareholders voted for a three-year interval for the advisory executive compensation vote ("Say-on-Pay Frequency").

If you're tracking shareholder sentiment, the high approval rates on key governance items suggest alignment with the current Board of Trustees.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Channels

You're looking at how InnSuites Hospitality Trust (IHT) gets rooms in front of guests and moves real estate assets. The channels are a mix of brand affiliation, third-party digital platforms, and direct customer outreach. For context, IHT's total revenues for Fiscal Year 2025 (ending January 31, 2025) reached approximately $7.6 million, showing growth from the prior year. The two core hotels-Tucson and Albuquerque-kicked off the next fiscal year strong, with combined revenue of approximately $4,004,635 for the First Fiscal Half of 2026 (February 1, 2025, to July 31, 2025).

Best Western global reservation and marketing system

The primary distribution backbone for IHT's owned properties is the Best Western affiliation. Both the Tucson Foothills Hotel & Suites and the Albuquerque Airport Hotel & Suites are branded through membership agreements with Best Western International, Inc.. This means a significant portion of bookings flows through that system. IHT pays fees to Best Western based on two main factors:

• Use of the Best Western reservation system.
• The total number of available suites at the Hotels.

This channel provides immediate global reach, though it comes with mandatory quality requirements and associated costs. The reliance on this system is structural, given IHT's ownership interests: a 51.01% stake in the Tucson property and a 20.33% stake in the Albuquerque property, both operating under the Best Western InnSuites banner.

Online Travel Agencies (OTAs) for room distribution

While the Best Western system is key, like the rest of the industry, IHT definitely uses Online Travel Agencies (OTAs) to capture demand. Globally, OTAs hold a 55% share of the travel booking market, compared to 45% for direct suppliers. For IHT, this channel is critical for filling rooms when direct or brand-system bookings fall short. The challenge, as seen in broader 2025 market data, is that while OTAs drive volume, direct bookings consistently show higher average values.

Here's a look at the general market dynamics that influence IHT's OTA strategy in 2025:

Direct booking via the hotel's website and phone

Driving direct bookings is the financial imperative because they bypass the commission structures of OTAs and, to some extent, the fee structure of the Best Western system. You want to see more of the $7.6 million in Fiscal Year 2025 revenue flow through this channel. Direct bookings are supported by loyalty programs and personalized offers, which is where IHT's own branding, InnSuites Hotels and Suites, comes into play alongside the Best Western brand.

The push for direct bookings is a near-term action because, generally, direct bookings bring in higher average revenue per transaction compared to OTA bookings. IHT's management is focused on operational efficiency, evidenced by reducing annualized insurance costs from $450,000 to approximately $100,000 for the current Fiscal Year, saving about $350,000, which frees up capital to invest in direct marketing efforts.

• Direct bookings offer higher Average Value per booking.
• Phone reservations remain a channel for specific, high-touch customer service.
• Website optimization supports the push for direct conversion.

SuiteHotelsRealty.com for hotel property disposition efforts

This channel serves a completely different purpose: capital recycling through the sale of hotel properties, which is a key function for a Trust structure. SuiteHotelsRealty.com is the platform used for these disposition efforts. While I don't have a specific 2025 transaction volume for this site, IHT has a history of strategic sales to manage its asset base. For example, in 2004, IHT sold a 160-unit hotel for $6.8 million and another property for $9.7 million. The channel's existence signals an active strategy to monetize real estate holdings when market conditions are right, which is a critical component of the overall business model separate from daily room revenue.

Finance: draft 13-week cash view by Friday.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Customer Segments

You're looking at the core groups InnSuites Hospitality Trust (IHT) serves as of late 2025, which is a mix of direct hotel guests, investors, and independent hotel operators needing support.

Moderate-budget leisure and business travelers in Arizona/New Mexico form the primary, direct customer base for the owned and managed hotel assets. These travelers are served by the two core hotel properties located in the Southwest region.

• Aggregate hotel suites across the two properties: 270 hotel suites as of January 31, 2025.
• Occupancy rate for Fiscal Year 2025: 74.58%.
• Combined Hotel Average Daily Rate (ADR) for Fiscal Year 2025: $99.68.
• Combined Revenue Per Available Room (REVPAR) for Fiscal Year 2025: $74.34.
• Total Revenues for Fiscal Year 2025: approximately $7.6 million.
• Hotel Revenue for the First Fiscal Half of 2026 (Feb 1, 2025, to Jul 31, 2025): approximately $4,004,635.
• Food and beverage revenue saw an increase of 35% in Q1 2025.

The properties include the Best Western InnSuites Tucson Foothills Hotel & Suites in Tucson, Arizona, and the Best Western InnSuites Albuquerque Airport Hotel & Suites in Albuquerque, New Mexico. IHT operates three hotels and provides management services for three hotels overall.

Value-focused individual and institutional investors are the second segment, interested in the Trust's performance and dividend history.

Here's the quick math on the investment profile as of late 2025:

The Trust paid semi-annual dividends on February 5, 2025, and August 7, 2025.

Independent hotels seeking management and reservation services (via IBC) represent a diversification customer segment. InnSuites Hospitality Trust (IHT) is participating in the revitalization of InnDependent Boutique Collection (IBC Hotels, LLC).

• RRF LLLP, IHT's management company subsidiary, was engaged to manage the IBC rebirth starting March 7, 2025.
• The target market is driven by the 'substantial unfulfilled need worldwide for independent boutique hotel and resort reservations, Boutique branding, and related hotel services'.
• Historically, IBC provided reservation services to 2,000 unrelated hospitality properties.

Finance: draft 13-week cash view by Friday.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Cost Structure

You're looking at the core costs InnSuites Hospitality Trust (IHT) is managing as it pivots its business model. The cost structure is heavily weighted toward the legacy hotel operations, even as the company pushes toward an asset-light future. These are the hard numbers you need to track.

The primary operating costs for InnSuites Hospitality Trust involve several key areas. Hotel operating expenses are dominated by payroll, guest and maintenance supplies, marketing, and utilities. To give you a concrete example from the last full fiscal year, utility expenses alone for the twelve months ended January 31, 2025, were approximately $402,000.

The costs associated with guest amenities and services are significant, reflecting the competitive nature of complimentary offerings. Specifically, hospitality expense, which includes things like complimentary breakfast-your number one most popular guest amenity-was approximately $608,000 for the twelve months ended January 31, 2025. This was an increase of about 32% from the prior year, driven by expanded offerings.

A major non-cash component of the cost structure is depreciation. For the Fiscal Year ended January 31, 2025, the non-cash depreciation expense recorded was approximately $706,000. This figure increased from approximately $679,000 the prior year due to ongoing capital expenditure investments made at the hotel properties.

Cost control efforts are evident in the administrative overhead. General and Administrative expenses were successfully reduced to $468,000 in the first quarter of 2025, down from $606,000 in Q1 2024. This reduction of about $138,000 in the quarter shows management is actively trimming corporate overhead.

Insurance is a major area where IHT has locked in near-term savings. The insurance costs for the Tucson hotel in Fiscal Year 2025 totaled approximately $450,000. Management has secured a substantial reduction for the current period, with annualized insurance costs reduced to approximately $100,000 for FY 2026, which translates to savings of about $350,000 annually.

Here is a snapshot of some of the key cost figures we just discussed for the relevant periods:

The overall expense management picture for the core hotel operations shows mixed results:

• Operating expenses decreased by 6% in Q1 2025.
• General and Administrative expenses fell by 23% in Q1 2025.
• Insurance cost reduction for FY 2026 is projected at $350,000 versus FY 2025.
• Hospitality expense increased by 32% in FY 2025.

You should keep an eye on the relationship between the high fixed costs like depreciation and the variable operating costs that are currently being aggressively managed. Finance: draft 13-week cash view by Friday.

InnSuites Hospitality Trust (IHT) - Canvas Business Model: Revenue Streams

You're looking at how InnSuites Hospitality Trust (IHT) actually brings in the money, which is always the most critical part of any business model review. Honestly, for a trust like IHT, it's a mix of core hospitality income and strategic diversification bets.

Here's a quick look at the major components that made up the top line for the Fiscal Year 2025.

The bread and butter, the Hotel Room Revenue, landed at approximately $7,336,000 for Fiscal Year 2025. That's the bulk of it, you see. The search data shows that the two hotels combined hit a record revenue of approximately $6,531,170 for the first ten Fiscal Months of Fiscal Year 2025, which ended October 31, 2024. Plus, for the first Fiscal Quarter of 2026, ending April 30, 2025, total revenue was about $2.2 million.

Next up, we have Food and Beverage Sales. This stream showed real zip early on; the revenue for this segment actually increased by 35% in Q1 2025. That kind of growth in an ancillary service is definitely something to watch, even if it's a smaller piece of the overall pie.

Then there are the fee-based revenues from Management and Licensing Fees from Hotel Services. This comes from IHT's management company, RRF LLLP, which also became the Management Company for InnDependent Boutique Collection (IBC Hotels, LLC). This diversification effort aims to capture revenue from global independent hotels by providing reservations and branding services.

Finally, you have the speculative but potentially high-impact stream: Potential Future Returns from the UniGen Power Investment. IHT invested $1 million in a 6% convertible bond with warrants in UniGen Power Inc. (UPI). If fully exercised, IHT could hold an ownership stake of approximately up to 15-20% or more in UniGen. The revenue here isn't realized yet, but it's a clear strategic revenue path based on projected electricity demand growth.

To give you a sense of the hotel performance driving the core revenue:

• Combined Hotel Average Daily Rate (ADR) increased by 4.37% for the first three fiscal quarters of 2025.
• Revenue Per Available Room (REVPAR) improved by 3.16% over the same period.
• The Tucson Hotel and Albuquerque Hotel generated a combined revenue of approximately $1.6 million in February and March of 2025.

The total revenue for the full Fiscal Year 2025 reached approximately $7,594,000, which was an increase from the prior fiscal year. Finance: draft 13-week cash view by Friday.