Exchange: AMEX | Sector: Real Estate | Industry: REIT Hotel Motel
Q2 2026
Published: Sep 12, 2025
Earnings Highlights
Revenue of $1.80M down 21.6% year-over-year
EPS of $-0.04 decreased by 133.9% from previous year
Net income of -391.18K
"Transcript data not provided in the input." - N/A
InnSuites Hospitality Trust (IHT) QQ2 2026 Earnings Analysis – Real Estate REIT Hotel Sector Performance Review
Executive Summary
InnSuites Hospitality Trust reported QQ2 2026 revenue of $1.80 million, representing a material YoY decline of 21.6% and a QoQ decline of 18.5%. The quarter delivered a net loss of $391 thousand and an EPS of -$0.04, underscoring persistent profitability and cash-flow pressures in a cyclical hotel segment. The company carries a heavy leverage profile, with total debt of $13.38 million and net debt of $13.18 million, against total assets of $14.20 million and stockholders’ equity of $3.97 million. Liquidity remains constrained, with a current ratio around 1.17 and a quick ratio near 0.20, signaling limited cushion to fund ongoing operating needs without new financing. Although the period reflects continued operating headwinds, the trailing four-quarter context suggests a fragile earnings trajectory that requires near-term improvements in occupancy, cost management, or balance-sheet actions to shift toward breakeven or modest profitability.
Given the data presented, the near-term investment thesis is cautious. Key drivers for any upside hinge on (1) stabilization or recovery in hotel demand within InnSuites’ asset portfolio, (2) refinancing or restructuring of debt to ease interest costs and extend maturities, and (3) disciplined capital expenditure and cost-control measures to improve operating leverage. Absent a meaningful improvement in these areas, IHT appears exposed to ongoing earnings volatility and liquidity risk in a rising-rate environment.
Key Performance Indicators
Revenue
1.80M
QoQ: -18.45% | YoY:-21.58%
Net Income
-391.18K
QoQ: -223.20% | YoY:-163.33%
EPS
-0.04
QoQ: -185.71% | YoY:-133.92%
Revenue Trend
Margin Analysis
Key Insights
Total assets: $14,197,704
Total liabilities: $13,999,091
Total stockholders’ equity: $3,965,460
Cash and cash equivalents: $206,941
Total debt: $13,382,487; Net debt: $13,175,546
Financial Highlights
Revenue: $1,798,872 (QQ2 2026); YoY -21.58%, QoQ -18.45%.
Gross profit and gross margin not disclosed in the quarterly data.
Net income: -$391,180; Net income margin: -21.75%.
EPS: -$0.04; Diluted EPS: -$0.04; YoY EPS change: -133.92%; QoQ: -185.71%.
Operating expenses: $2,037,572; Interest expense: $129,864.
Income before tax: -$367,814; Income tax expense: $23,366; Effective tax impact: positive tax line vs loss.
Balance sheet:
- Total assets: $14,197,704
- Total liabilities: $13,999,091
- Total stockholders’ equity: $3,965,460
- Cash and cash equivalents: $206,941
- Total debt: $13,382,487; Net debt: $13,175,546
- Current assets: $1,690,994; Current liabilities: $1,441,278; Current ratio: ~1.17; Quick ratio: ~0.20.
Leverage and liquidity:
- Debt-to-equity: ~3.37x
- Net debt to assets: ~92.8%
- No reported EBITDA; absence of operating cash flow data in the provided figures.
- Revenue and earnings decline signals ongoing operating leverage challenges in a cyclical hotel segment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.80M
-21.58%
-18.45%
Net Income
-391.18K
-163.33%
-223.20%
EPS
-0.04
-133.92%
-185.71%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the input. Unable to extract management quotes or themes from an earnings call. Once the transcript is available, I will extract management themes by the following structure: Strategy (growth/portfolio focus, capital allocation), Operations (occupancy trends, rate discipline, cost controls), Market Conditions (demand trends, competitive dynamics, occupancy), and Financial Outlook (guidance, refinancing needs, liquidity expectations).
Transcript data not provided in the input.
— N/A
Transcript data not provided in the input.
— N/A
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given the QQ2 2026 results show negative profitability and a high debt burden, a prudent framework would anticipate continued caution on near-term revenue growth and potential emphasis on liquidity preservation. Scenario-based view:
- Base case: Modest occupancy stabilization with tight cost controls; potential improvement in EBITDA if operating leverage improves and financing costs are managed through refinancing.
- Downside: Further declines in occupancy or sustained weak demand could worsen margins and prolong cash burn, pressing liquidity.
- Upside: Successful refinancing at favorable terms, strategic asset dispositions, or a meaningful rebound in travel demand leading to stabilizing occupancy and revenue growth.
Key factors for investors to monitor: occupancy recovery indicators, ADR trends, debt maturity profile and refi options, capex cadence, and any asset sales or portfolio optimization signals.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BHR
13.00%
5.84%
-1.52%
-3.58%
SOHO
31.00%
18.30%
8.96%
1.20%
AHT
17.40%
9.59%
-51.70%
19.90%
SOHOB
31.00%
18.30%
8.96%
34.88%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall cautious stance given negative profitability and elevated leverage. Near-term upside requires stabilization of occupancy and improved cost control, coupled with favorable refinancing terms. Investors should monitor debt maturities, liquidity runway, asset disposition opportunities, and any strategic shifts in portfolio strategy. The stock trades with a high risk premium until there is visible improvement in EBITDA/operating cash flow and a clearer path to debt reduction.
Key Investment Factors
Growth Potential
Limited near-term growth potential evidenced by single-quarter revenue of $1.80M with negative net income and high leverage. Potential upside hinges on occupancy stabilization, asset-level optimization, and debt refinancing; any portfolio reshaping or brand repositioning could unlock selective growth opportunities.
Profitability Risk
High financial risk due to substantial leverage (debt-to-equity ~3.37x), negative profitability (net margin -21.7%), and constrained liquidity (quick ratio ~0.20). Vulnerability to macro travel downturns and rate volatility could pressure interest costs and debt Service. Limited visibility on cash flow and EBITDA impedes operating resilience.
Financial Position
Weak near-term profitability with a heavy debt burden ($13.38M total debt; net debt $13.18M) against $14.20M in assets. Liquidity remains tight (cash $0.21M; current ratio ~1.17). Equity base modest ($3.97M). Absence of disclosed cost of revenue and EBITDA reduces clarity on operating cash flow generation.
SWOT Analysis
Strengths
Long-standing hotel real estate portfolio under InnSuites branding
Visible asset base with potential for value realization
Established operating platform and brand recognition within select markets
Weaknesses
Significant quarterly net loss and negative earnings per share
Heavy leverage and high debt burden with limited liquidity cushion
Lack of disclosed gross profit and EBITDA metrics; limited visibility into operating cash flow
Low quick liquidity (quick ratio ~0.20)
Constrained capital allocation flexibility in a cyclical hotel environment
Opportunities
Occupancy stabilization and modest revenue improvement as travel demand recovers
Portfolio optimization through asset sales or refinancing to reduce cost of capital
Brand and loyalty initiatives to drive occupancy and ADR
Potential refinancing of high-cost debt to improve interest burden and maturity profile
Threats
Macro travel demand weakness and recessions risk
Rising interest rates driving debt service costs
Competition within hotel REIT segment and mix shift toward newer assets
Asset concentration risk and impairment risk in a small asset base