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<SEC-DOCUMENT>/in/edgar/work/20000614/0000950109-00-002488/0000950109-00-002488.txt : 20000919
<SEC-HEADER>0000950109-00-002488.hdr.sgml : 20000919
ACCESSION NUMBER:		0000950109-00-002488
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20000430
FILED AS OF DATE:		20000614

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INNSUITES HOSPITALITY TRUST
		CENTRAL INDEX KEY:			0000082473
		STANDARD INDUSTRIAL CLASSIFICATION:	 [6798
]		IRS NUMBER:				346647590
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0131
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		10-Q
			SEC ACT:		
			SEC FILE NUMBER:	001-07062
			FILM NUMBER:		655297
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		INNSUITES HOTELS CENTRE
				STREET 2:		1625 E NORTHERN AVENUE SUITE 201
				CITY:			PHOENIX
				STATE:			AZ
				ZIP:			85020
				BUSINESS PHONE:		2166220046
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		925 EUCLID AVENUE
					STREET 2:		SUITE 1750
					CITY:			CLEVELAND
					STATE:			OH
					ZIP:			44115
</MAIL-ADDRESS>

					FORMER COMPANY:	
						FORMER CONFORMED NAME:	REALTY REFUND TRUST
						DATE OF NAME CHANGE:	19920703
</FORMER-COMPANY>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>0001.htm
<DESCRIPTION>QUARTERLY REPORT INNSUITES
<TEXT>

<HTML>
<HEAD>
 <TITLE>QUARTERLY REPORT INNSUITES</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
 <P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
 <P ALIGN="CENTER">WASHINGTON, D.C. 20549</P>
 <P ALIGN="CENTER">FORM 10-Q</P>
 <P ALIGN="CENTER">-----------------</P>
 <P ALIGN="CENTER">QUARTERLY REPORT
 <BR>
 PURSUANT TO SECTION 13 OR 15(d)
 <BR>
 OF THE SECURITIES EXCHANGE ACT OF 1934
 <BR>
 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2000</P>
 <P ALIGN="CENTER">Commission File Number 1-7062</P>
 <P ALIGN="CENTER">INNSUITES HOSPITALITY TRUST
 <BR>
 (Exact name of registrant as specified in its charter)</P>
 <TABLE WIDTH="100%" BORDER="0" CELLSPACING="0" CELLPADDING="0" ALIGN="center">
  <TR>
   <TD> <DIV ALIGN="center">OHIO</DIV>
   </TD>
   <TD> <DIV ALIGN="center">34-6647590</DIV>
   </TD>
  </TR>
  <TR>
   <TD> <DIV ALIGN="center">(State or other jurisdiction</DIV>
   </TD>
   <TD> <DIV ALIGN="center">(I.R.S. Employer Identification Number)</DIV>
   </TD>
  </TR>
  <TR>
   <TD> <P ALIGN="center">of incorporation or organization) </TD>
   <TD>&nbsp;</TD>
  </TR>
 </TABLE>
 <P ALIGN="center">InnSuites Hotels Centre
 <BR>
 1625 E. Northern Ave., Suite 201
 <BR>
 Phoenix, AZ 85020
 <BR>
 (Address of principal executive offices)</P>
 <P ALIGN="center">&nbsp;</P>
 <P ALIGN="left">Registrant's telephone number, including area code (602)
   944-1500</P>
 <P>Indicate by check mark whether the registrant: (l) has filed all reports
   required to be filed by Section 13 or l5(d) of the Securities Exchange Act
   of 1934 during the preceding 12 months (or for such shorter period that the
   registrant was required to file such reports), and (2) has been subject to
   such filing requirements for the past 90 days. Yes
   <U>&nbsp;X&nbsp;</U>&nbsp; &nbsp;No <U>&nbsp;&nbsp;&nbsp;&nbsp;</U> </P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;Number of outstanding Shares of Beneficial
   Interest, without par value, as of June 5, 2000: 2,448,657. </P>
 <P ALIGN="left"><B>PART 1</B></P>
 <P ALIGN="left"><B>FINANCIAL INFORMATION </B></P>
 <P ALIGN="left"><B>ITEM
   1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL
   STATEMENTS. </B></P>
 <P ALIGN="center"><B>INNSUITES HOSPITALITY TRUST AND SUBSIDIARY </B></P>
 <P ALIGN="center"><B>BALANCE SHEETS</B> </P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="690">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="4"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TH ALIGN="LEFT" COLSPAN="2">APRIL&nbsp;30,&nbsp;2000 <HR NOSHADE
     ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
   <TH ALIGN="LEFT">&nbsp;</TH>
   <TH ALIGN="RIGHT">&nbsp;</TH>
   <TH ALIGN="RIGHT" COLSPAN="2">JANUARY&nbsp;31,&nbsp;2000 <HR NOSHADE
     ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>ASSETS</B></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TH ALIGN="RIGHT">(UNAUDITED) </TH>
   <TH ALIGN="LEFT">&nbsp;</TH>
   <TH ALIGN="RIGHT">&nbsp;&nbsp;</TH>
   <TH ALIGN="RIGHT">&nbsp;</TH>
   <TH ALIGN="RIGHT">(AUDITED)</TH>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Hotel properties, net</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;64,125,135</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;64,479,187</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Cash and cash equivalents</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">225,846</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">208,109</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Rent receivable from affiliate,</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;net of $3,100,890 and $2,845,732
     allowance respectively</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Interest receivable and other assets</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">595,715</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">618,063</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>TOTAL ASSETS</B></TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;64,946,696</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;65,305,519</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>LIABILITIES AND SHAREHOLDERS' EQUITY
   <BR>
   LIABILITIES</B></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Mortgage notes payable</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;24,071,090</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">$</TD>
   <TD ALIGN="RIGHT">24,251,662</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Notes payable to banks</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">11,300,000</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">11,300,000</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Other notes payable</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">225,000</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Advances payable to related parties</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">2,625,000</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">2,970,000</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">Accounts payable and accrued expenses</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">780,364</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">1,138,168</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>TOTAL LIABILITIES</B></TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;38,776,455</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">39,884,830</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>MINORITY INTEREST IN PARTNERSHIP</B></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">17,293,861</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">16,789,423</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>SHAREHOLDERS' EQUITY</B></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of beneficial
     interest, without par value; unlimited</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorization;
     2,441,449 and 2,507,949 shares issued and</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding at April 30
     and January 31, 2000, respectively</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">9,488,256</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">9,093,020</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(611,875</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(461,754</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR>
   <TD COLSPAN="2"></TD>
   <TD COLSPAN="2" ALIGN="RIGHT">&nbsp; </TD>
   <TD COLSPAN="4" ALIGN="RIGHT">&nbsp; </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>TOTAL SHAREHOLDERS' EQUITY</B></TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;8,876,381</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">8,631,266</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B></B></TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR>
   <TD COLSPAN="2"><B></B></TD>
   <TD COLSPAN="2" ALIGN="RIGHT">&nbsp; </TD>
   <TD COLSPAN="4" ALIGN="RIGHT">&nbsp; </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"><B>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</B></TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;64,946,696</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">$</TD>
   <TD ALIGN="RIGHT">65,305,519</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
 </TABLE>
 <P ALIGN=center>See accompanying notes to unaudited financial statements.</P>
 <P ALIGN=center>&nbsp;</P>
 <P ALIGN="center"><B>INNSUITES HOSPITALITY TRUST AND SUBSIDIARY
 <BR>
 UNAUDITED STATEMENTS OF OPERATIONS</B></P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="54%" ALIGN="LEFT">&nbsp;</TD>
   <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
   <TH ALIGN="RIGHT" COLSPAN="3"> <DIV
     ALIGN="center">FOR&nbsp;THE&nbsp;THREE&nbsp;MONTH&nbsp;PERIOD ENDED APRIL
     30, </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="54%" ALIGN="LEFT">&nbsp;</TD>
   <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
   <TH WIDTH="18%" ALIGN="RIGHT"> <DIV ALIGN="center">2000 </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TH WIDTH="2%" ALIGN="LEFT"> <DIV
     ALIGN="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIV>
   </TH>
   <TH WIDTH="21%" ALIGN="RIGHT"> <DIV ALIGN="center">1999 </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="54%" ALIGN="LEFT">&nbsp;</TD>
   <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
   <TH WIDTH="18%" ALIGN="RIGHT">&nbsp;</TH>
   <TH WIDTH="2%" ALIGN="LEFT">&nbsp;</TH>
   <TH WIDTH="21%" ALIGN="RIGHT"> <DIV ALIGN="center">(Restated)</DIV>
   </TH>
   <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD WIDTH="54%" ALIGN="LEFT"><B>REVENUES</B></TD>
   <TD WIDTH="1%" ALIGN="LEFT">&nbsp;&nbsp;</TD>
   <TD WIDTH="18%" ALIGN="RIGHT"></TD>
   <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD>
   <TD WIDTH="21%" ALIGN="RIGHT"></TD>
   <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rent revenue from
     affiliate</TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">3,319,046</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">3,255,511</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
     income</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">2,263</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">19,876</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">&#151;</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">9,591</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>TOTAL REVENUES</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">3,321,309</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">3,284,978</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%"><B></B></TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%"><B>EXPENSES</B></TD>
   <TD ALIGN="LEFT" COLSPAN="2">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate
     depreciation</TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">&nbsp;665,706</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">618,363</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate and
     personal property taxes</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;insurance and ground
     rent,</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">342,852</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">375,727</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and
     administrative</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">468,886</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">517,376</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on
     mortgage notes payable</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">545,100</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">503,550</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on notes
     payable to banks</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">245,897</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">251,206</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on note
     payable to related party</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">49,830</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">25,211</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of
     loan fees</TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">16,265</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">257</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>TOTAL EXPENSES</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">2,334,537</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">2,291,690</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>INCOME BEFORE MINORITY INTEREST</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">986,773</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">993,288</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>LESS: MINORITY INTEREST</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">594,284</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">613,981</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>NET INCOME ATTRIBUTABLE TO SHARES OF
     BENEFICIAL INTEREST</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">392,489</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">379,307</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>EARNINGS PER SHARE &#151; basic</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT"
     WIDTH="18%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;.16</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">.16</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>WEIGHTED AVERAGE NUMBER OF SHARES
     OUTSTANDING &#151; basic</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">2,474,377</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">2,321,133</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="18%" COLSPAN="2"> <HR NOSHADE COLOR="Black"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>EARNINGS PER SHARE &#151; diluted</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">$</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">.10</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">.10</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="18%" COLSPAN="2"> <HR NOSHADE COLOR="Black"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="54%"><B>WEIGHTED AVERAGE NUMBER OF SHARES
     OUTSTANDING &#151; diluted</B></TD>
   <TD ALIGN="LEFT" WIDTH="1%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="18%">9,733,222</TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%">10,090,213</TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" WIDTH="55%">&nbsp;</TD>
   <TD ALIGN="LEFT" WIDTH="18%" COLSPAN="2"> <HR NOSHADE COLOR="Black"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="2%">&nbsp;</TD>
   <TD ALIGN="RIGHT" WIDTH="21%"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT" WIDTH="4%">&nbsp;</TD>
  </TR>
 </TABLE>
 <P ALIGN="center">See accompanying notes to unaudited financial statements.
   </P>
 <P ALIGN="center"><B>INNSUITES HOSPITALITY TRUST AND SUBSIDARY
 <BR>
 UNAUDITED STATEMENTS OF CASH FLOWS</B></P>

 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="690">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="3"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="5"> <DIV ALIGN="center">
     <P>FOR&nbsp;THE&nbsp;THREE&nbsp;MONTHS ENDED&nbsp;APRIL&nbsp;30, </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <DIV ALIGN="center">2000 </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TD>
   <TH ALIGN="LEFT"> <DIV ALIGN="center"></DIV>
   </TH>
   <TH ALIGN="RIGHT"> <DIV ALIGN="center">&nbsp;&nbsp;&nbsp;&nbsp;</DIV>
   </TH>
   <TH ALIGN="RIGHT"> <DIV ALIGN="center">1999 </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TD ALIGN="LEFT"> <DIV ALIGN="center"></DIV>
   </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">CASH FLOWS FROM OPERATING ACTIVITIES</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT"></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT"></TD>
   <TD ALIGN="RIGHT"></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Net income</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;392,489</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">379,307</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to
     net</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;cash provided by operating
     activities:</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option compensation
     expense</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">13,129</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
     amortization</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">681,971</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">618,620</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interest</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">594,284</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">613,981</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) Decrease in
     interest receivable and other
   <BR>
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assets</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">6,084</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(364,822</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in percentage rent
     receivable</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(255,158</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(331,474</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for uncollectible
     receivable from affiliate</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">255,158</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable
     and accrued expenses</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(357,805</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(409,938</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">NET CASH PROVIDED BY OPERATING ACTIVITIES</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;1,330,152</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">505,674</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">CASH FLOWS FROM INVESTING ACTIVITIES</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Improvements and additions to hotel
     properties</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(311,494</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(615,940</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR>
   <TD COLSPAN="2"></TD>
   <TD COLSPAN="2" ALIGN="RIGHT">&nbsp; </TD>
   <TD COLSPAN="3" ALIGN="RIGHT">&nbsp; </TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">NET CASH (USED IN) INVESTING ACTIVITIES</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;(311,494</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(615,940</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">CASH FLOWS FROM FINANCING ACTIVITIES</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Payments on mortgage notes payable</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;(180,572</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(699,341</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Issuance (Repurchase) of shares</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(150,120</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">177,573</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Refinancing of mortgage notes payable</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">1,751,920</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Payments on other notes payable</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(225,000</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(450,000</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Repurchase of partnership units</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(73,822</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(269,183</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Payment of dividends</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(26,407</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Advances from related parties</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&#151;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">2,000,000</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Payments on advances from related
     parties</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(345,000</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">(1,982,782</TD>
   <TD ALIGN="LEFT">)</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">(1,000,921</TD>
   <TD ALIGN="LEFT">)</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">528,187</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">NET INCREASE IN CASH AND CASH EQUIVALENTS</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,737</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">417,921</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;208,109</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">420,935</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">CASH AND CASH EQUIVALENTS AT END OF PERIOD</TD>
   <TD ALIGN="LEFT">$</TD>
   <TD ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;225,846</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT">838,856</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
   <TD ALIGN="RIGHT">&nbsp;</TD>
   <TD ALIGN="RIGHT"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
 </TABLE>
 <P ALIGN="center">See accompanying notes to unaudited financial statements.</P>
 <P>&nbsp; </P>
 <P ALIGN="center">INNSUITES HOSPITALITY TRUST AND SUBSIDIARY
 <BR>
 NOTES TO UNAUDITED FINANCIAL STATEMENTS
 <BR>
 As of and for the three months ended APRIL 30, 2000 and 1999 </P>
 <P>1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION:</P>
 <P>InnSuites Hospitality Trust (the &quot;Trust&quot;) is a real estate
   investment trust (&quot;REIT&quot;), which owns directly or indirectly, ten
   hotels with 1,665 suites in Arizona and southern California. The hotels
   operate as InnSuites Hotels.</P>
 <P>Until January 31, 1998, the Trust, formerly known as Realty ReFund Trust,
   specialized in mortgage financing as its investment vehicle, refinancing
   existing income producing commercial, industrial and multi-unit residential
   real property by supplementing or replacing existing financing. The primary
   refinancing technique, which the Trust employed, was wrap-around mortgage
   lending.</P>
 <P>On January 31, 1998, the Trust contributed $2,081,000 to RRF Limited
   Partnership (the &quot;Partnership&quot;), a Delaware limited partnership,
   in exchange for a 13.6% general partnership interest therein. The Trust is
   the sole general partner of the Partnership. The Partnership issued limited
   partnership interests representing 86.4% of the Partnership to acquire six
   hotel properties from various entities. In addition, in order to acquire a
   seventh hotel property, through a wholly-owned subsidiary, RRF Sub Corp.,
   the Trust issued 647,231 shares of beneficial interest in exchange for all
   of the outstanding shares of Buenaventura Properties, Inc. (BPI), which
   owned a hotel located in Scottsdale, Arizona (InnSuites Hotels Scottsdale).
   These seven hotels are collectively referred to as the &quot;Initial
   Hotels.&quot; The Initial Hotels, together with the hotels described in Note
   4, are referred to herein as the &quot;Hotels&quot;. The Hotels are leased
   to InnSuites Hotels, Inc., formerly known as Realty Hotel Lessee Corp. (the
   &quot;Lessee&quot;), pursuant to leases, which contain provisions for rent
   based on the revenues of the Hotels (the &quot;Percentage Leases&quot;).
   Each Percentage Lease obligates the Lessee to pay rent equal to the greater
   of the minimum rent (Base Rent) or a percentage rent based on the gross
   revenues of each Hotel. The Lessee holds the franchise agreement for each
   Hotel. The Lessee is owned 9.8% by InnSuites Innternational Hotels, Inc., an
   entity owned by James&nbsp;F.&nbsp;Wirth, Chairman, President and Chief
   Executive Officer of the Trust (&quot;Wirth&quot;) and his spouse.</P>
 <P>As of and for the 3 month period ended April 30, 2000, the Trust's general
   partnership interest in the Partnership was 45.1% and 45.0% (weighted
   average), respectively.</P>
 <P>Partnership Agreement</P>
 <P>The Partnership Agreement provides for the issuance of two classes of
   limited partnership units, Class A and Class B. Such classes are identical
   in all respects, except that each Class A limited partnership unit in the
   Partnership shall be convertible into a like number of shares of beneficial
   interest of the Trust, at any time at the option of the particular limited
   partner, if the Trust determines that such conversion would not cause the
   Trust to fail to qualify as a REIT. As of April 30, 2000, a total of
   2,032,481 Class A limited partnership units were issued and outstanding.
   Additionally a total of 5,226,364 Class B limited partnership units were
   outstanding to Wirth and his affiliates, in lieu of the issuance of Class A
   limited partnership units. If all of the Class A and B limited partnership
   units were to be converted, the limited partners in the Partnership would
   receive 7,258,845 shares of beneficial interest of the Trust. The Class B
   limited partnership units may only become convertible with the approval of
   the Board of Trustees, in its sole discretion.</P>
 <P>Basis of Presentation</P>
 <P>As sole general partner, the Trust exercises unilateral control over the
   Partnership. Therefore, the financial statements of the Partnership are
   consolidated with the Trust. All significant intercompany transactions and
   balances have been eliminated.</P>
 <P>&nbsp;</P>
 <FONT
 FACE="Courier New" SIZE="-1"></FONT> <P>These consolidated financial
   statements have been prepared in accordance with generally accepted
   accounting principles for interim financial information and with the
   instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly,
   they do not include all of the information and footnotes required by
   generally accepted accounting principles for complete consolidated financial
   statements. In the opinion of management, all adjustments (consisting of
   normal recurring accruals) considered necessary for a fair presentation have
   been included. Operating results for the three-month period ended April 30,
   2000 are not necessarily indicative of the results that may be expected for
   the year ended January 31, 2001. For further information, refer to the
   consolidated financial statements and footnotes thereto included in the
   Trust's Annual Report on Form 10-K/A as of and for the year ended January
   31, 2000.</P>
 <P>The preparation of financial statements in conformity with generally
   accepted accounting principles 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 financial
   statements, and the reported amounts of revenues and expenses during the
   reporting period. Actual results could differ from those estimates.</P>
 <P>2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REVENUE
   RECOGNITION:</P>
 <P>Trust revenues are earned monthly as per the Percentage Leases and
   recognized when earned.</P>
 <P>3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EARNINGS PER
   SHARE:</P>
 <P>SFAS No. 128, &quot;Earnings per Share&quot; eliminates the concept of
   common stock equivalents and replaces &quot;primary&quot; and &quot;fully
   diluted&quot; earnings per share with &quot;basic&quot; and
   &quot;diluted&quot; earnings per share. Basic and diluted earnings per share
   have been computed based on the weighted-average number of shares
   outstanding during the periods.</P>
 <P>
 <A NAME="P316_19648"></A>
 For the quarters ended April 30, 2000 and 1999, there were Class A and Class B
   partnership units outstanding, which are convertible to shares of beneficial
   interest of the Trust. Assuming conversion, the aggregated weighted-average
   of these shares of beneficial interest would be 7,258,845 in the first
   quarter of fiscal 2001 and 7,769,080 in the first quarter of fiscal 2000.
   These shares are dilutive due to the earnings for the first quarters of
   fiscal years 2001 and 2000.</P>
 <P>4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACQUISITIONS:</P>
 <P>There were no hotel acquisitions during the first quarter of fiscal
   2001.</P>
 <P>&nbsp;</P>
 <P> </P>
 <P>&nbsp; </P>
 <FONT
 FACE="Courier New" SIZE="-1"></FONT><P>5.
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CREDIT FACILITY:</P>
 <P>During the first quarter of fiscal 1999, the Trust established a
   $12,000,000 revolving line of credit with Pacific Century Bank. The credit
   facility requires the Trust, among other things, to maintain a minimum net
   worth, a specified coverage ratio of earnings before interest, taxes,
   depreciation, and amortization (EBITDA) to debt service, and a specified
   coverage ratio of EBITDA to debt service and fixed charges. Further, the
   Trust is required to maintain its franchise agreement at each of the hotel
   properties and to maintain its REIT status.</P>
 <P>6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERCENTAGE LEASE
   AGREEMENTS:</P>
 <P>The Percentage Leases have non-cancelable terms, which expire on January
   31, 2008, subject to earlier termination on the occurrence of certain
   contingencies, as defined. The rent due under each Percentage Lease is the
   greater of minimum rent, as defined, or percentage rent. Percentage rent
   applicable to room and other hotel revenue varies by lease and is calculated
   on a quarterly basis by multiplying fixed percentages by the actual
   quarterly amounts of such gross revenues in excess of specified threshold
   amounts. Both the minimum rent and the revenue thresholds used in computing
   percentage rents are subject to annual adjustments beginning January 1,
   1999, based on increases in the United States Consumer Price Index.
   Percentage rent applicable to food and beverage revenues is calculated as 5%
   of such revenue over a minimum threshold.</P>
 <P>Future minimum rentals (ignoring CPI increases) to be received by the Trust
   from the Lessee pursuant to the Percentage Leases for each of the next five
   years and in total thereafter are as follows:<FONT
 FACE="Courier New" SIZE="-1"> </FONT></P>
 <TABLE WIDTH="43%" BORDER="0" CELLSPACING="0" CELLPADDING="0" ALIGN="center">
  <TR>
   <TD WIDTH="30%"> <DIV ALIGN="center"><U>Fiscal</U></DIV>
   </TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%">&nbsp;</TD>
   <TD WIDTH="20%">&nbsp;</TD>
  </TR>
  <TR>
   <TD WIDTH="30%"> <DIV ALIGN="center">2001</DIV>
   </TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD WIDTH="20%"> <DIV ALIGN="right">5,137,500</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%"> <DIV ALIGN="center">2002</DIV>
   </TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="20%"> <DIV ALIGN="right">6,850,000</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%"> <DIV ALIGN="center">2003</DIV>
   </TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="20%"> <DIV ALIGN="right">6,850,000</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%"> <DIV ALIGN="center">2004</DIV>
   </TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="20%"> <DIV ALIGN="right">6,850,000</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%" HEIGHT="18"> <DIV ALIGN="center">2005</DIV>
   </TD>
   <TD WIDTH="48%" HEIGHT="18">&nbsp;</TD>
   <TD WIDTH="2%" HEIGHT="18"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="20%" HEIGHT="18"> <DIV ALIGN="right">6,850,000</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%"> <DIV ALIGN="center">&nbsp;Thereafter</DIV>
   </TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD WIDTH="20%"> <DIV ALIGN="right">20,550,000</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%">&nbsp;</TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="22%" COLSPAN="2"> <DIV ALIGN="right"></DIV>
   <DIV ALIGN="right"></DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TD>
  </TR>
  <TR>
   <TD WIDTH="30%">&nbsp;</TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="2%"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD WIDTH="20%"> <DIV ALIGN="right">53,087,500</DIV>
   </TD>
  </TR>
  <TR>
   <TD WIDTH="30%">&nbsp;</TD>
   <TD WIDTH="48%">&nbsp;</TD>
   <TD WIDTH="22%" COLSPAN="2"> <HR NOSHADE ALIGN="center" WIDTH="100%"
     SIZE="2"> </TD>
  </TR>
 </TABLE>
 <P>The Trust earned approximately $3.3 million in rent revenue during both the
   first quarter of fiscal 2001 and 2000, of which approximately $1.6 million
   and $1.5 million, respectively, was in excess of base rent. After a review
   of projected cash flows to assess the future collectiblity of current rents,
   the Trust recorded a provision for uncollectible rent receivables of
   $255,158 for the first quarter of fiscal 2001.</P>
 <FONT
 FACE="Courier New" SIZE="-1"></FONT> <P>7.
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RELATED PARTY
   TRANSACTIONS:</P>
 <P>The Partnership is responsible for all expenses incurred by the Trust in
   accordance with the Partnership Agreement. </P>
 <P>Wirth is a 9.8% indirect shareholder of the Lessee. At April 30, 2000 the
   Trust had an $185,000 receivable from the Lessee. </P>
 <P>The Initial Hotels were acquired by the Partnership from entities in which
   Wirth and his affiliates had substantial ownership interests. Wirth and his
   affiliates received 4,017,361 Class B limited partnership units and 647,231
   shares of Beneficial Interest in the Trust in exchange for their interests
   in the Initial Hotels. As of April 30, 2000, Wirth and his affiliates held
   5,226,364 Class B limited partnership units. As of April 30, 2000 Wirth and
   his affiliates held 834,613 shares of beneficial interest in the Trust.</P>
 <P>
 <A NAME="P365_25260"></A>
 At April 30, 2000, the Trust owned a 45.1% interest in the ten hotels (the
   &quot;Hotels&quot;) through its sole general partner's interest in the
   Partnership. This change in ownership resulted primarily from the following
   transactions:</P>
 <UL> <P>On March 15, 1999, the Trust purchased 1 million additional general
   partner units in the Partnership for $2 million. This transaction was fully
   funded by Wirth who provided an unsecured loan to the Trust at 7% interest
   payable annually beginning March 15, 2000. The unpaid principal balance and
   accrued interest is due on March 15, 2004.</P>
 <P>On April 2, 1999, the Partnership made an unsecured loan to the Trust in
   the amount of $2.6 million. Annual interest only payments are due on March 1
   of each year and are based on a 7% interest rate. The unpaid principal
   balance is due at maturity on April 2, 2006. The Trust used the proceeds of
   that loan to purchase 1.3 million general partner units in the Partnership.
   The money loaned by the Partnership was generated by refinancing the
   Northern Phoenix hotel and borrowing an additional $1.8 million that was
   secured by a mortgage on that property. The original mortgage note was
   restructured to match the terms of the refinanced note, which bears interest
   at 8.25% and matures on April 1, 2014. Monthly principal and interest
   payments began on April 1, 1999.</P>
 <P>As of April 2, 1999, the Trust transferred, at historical cost of
   approximately $7 million, its interest in the Scottsdale property to the
   Partnership in exchange for 1.6 million general partner units.</P>
 <P>The Trust repurchased 36,911 in the first quarter of fiscal 2001 and
   131,493 in fiscal 2000 of the Partnership's Class A units at a weighted
   average price per unit of $2.00 and $4.10, respectively. These units were
   retired.</P>
 </UL>
 <P>The Trust paid interest on related party notes to Wirth in the amount of
   $143,597 for the three months ended April 30, 2000.</P>
 <P>The expenses of the Trust consist primarily of property taxes, insurance,
   corporate overhead, interest on mortgage debt and depreciation of the
   Hotels. Under the terms of the Partnership agreement, the Partnership is
   required to reimburse the Trust for all such expenses.</P>
 <P>Loans payable to related parties consists of funds provided by Wirth to
   repurchase Partnership units and to fund working capital and capital
   improvement needs. The aggregate amounts outstanding were approximately $2.6
   million and $3.0 million as of April 30 and January 31, 2000, respectively.
   The loans payable to related parties are as follows:</P>
 <UL> Wirth made an unsecured loan to the Trust in the amount of $2 million,
   bearing interest at 7% per year effective March 15, 1999. Interest only
   payments are due annually beginning March 15, 2000. The unpaid principal
   balance and accrued interest is due on March 15, 2004. The Trust used the
   proceeds to purchase general partner units in the Partnership. </UL>
 <P>&nbsp;</P>
 <P>  </P>
 <FONT
 FACE="Courier New" SIZE="-1"></FONT><UL> <P>Wirth made an unsecured loan to
   the Trust in the amount of $200,000, bearing interest at 7% per year
   effective June 14, 1999. The unpaid principal balance and accrued interest
   is due on June 14, 2000. The Trust used the proceeds to fund operations.</P>
 <P>Wirth made an unsecured loan to the Trust in the amount of $120,000,
   bearing interest at 7% per year effective July 27, 1999. The unpaid
   principal balance and accrued interest is due on July 27, 2000. The Trust
   used the proceeds to fund operations.</P>
 <P>Wirth made an unsecured loan to the Trust in the amount of $30,000, bearing
   interest at 7% per year effective August 17, 1999. The unpaid principal
   balance and accrued interest is due on August 17, 2000. The Trust used the
   proceeds to pay down the outstanding loan from the Partnership.</P>
 <P>Wirth made an unsecured loan to the Trust in the amount of $250,000,
   bearing interest at 7% per year effective October 12, 1999. The unpaid
   principal balance and accrued interest is due on June 1, 2000. The Trust
   used the proceeds to pay dividends declared on October 12, 1999 and to pay
   down the outstanding loan from the Partnership.</P>
 <P>Wirth made an unsecured loan to the Trust in the amount of $250,000,
   bearing interest at 7% per year effective October 14, 1999. The unpaid
   principal balance and accrued interest is due on March 1, 2000. The Trust
   used the proceeds to pay down the outstanding loan from the Partnership,
   which then was used by the Partnership to pay deposits and other fees
   related to the pending refinancing of the San Diego Hotel. At April 30,
   2000, the unpaid balance on this note was $25,000. Subsequently, on May 17,
   2000, the loan was paid in full.</P>
 <P>InnSuites Innternational Hotels made an unsecured loan in the amount of
   $120,000 to the Trust bearing no stated interest rate or maturity date on
   January 12, 2000. Subsequently on March 8, 2000, the loan was paid in
   full.</P>
 </UL>
 <P>8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STATEMENTS OF CASH
   FLOWS, SUPPLEMENTAL DISCLOSURES:</P>
 <P>The Trust issued 3,000 shares of beneficial interest during the quarter
   ended April 30, 2000 valued at $6,375 in exchange for Class A limited
   partnership units.</P>
 <P>The Trust paid $99,394 in dividends and distributions in the quarter ended
   April 30, 2000.</P>
 <P> </P>
 <P> 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STATEMENTS
   OF OPERATIONS OF INNSUITES HOTELS, INC. (LESSEE) </P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
   condensed financial information related to the Lessee's operations is as
   follows: </P>
 <P ALIGN="center"><B>INNSUITES HOTELS, INC.
 <BR>
 </B><B>UNAUDITED STATEMENTS OF OPERATIONS
 <BR>
 </B><B>(AMOUNTS IN THOUSANDS) </B></P>
 <P>&nbsp;</P>
 <TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
  <TR VALIGN="BOTTOM">
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
   <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TH ALIGN="LEFT" COLSPAN="4" VALIGN="bottom"> <DIV
     ALIGN="center">THREE&nbsp;MONTHS&nbsp;ENDED&nbsp;APRIL&nbsp;30, </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TH ALIGN="LEFT" COLSPAN="2" VALIGN="bottom"> <DIV ALIGN="center">2000 </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TH ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="center">&nbsp;&nbsp;</DIV>
   </TH>
   <TH ALIGN="RIGHT" VALIGN="bottom"> <DIV ALIGN="center">1999 </DIV>
   <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TH>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom"><B>REVENUES FROM HOTEL OPERATIONS</B></TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom"></TD>
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom"></TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;Room, food and beverage</TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">8,912</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">8,866</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;Other</TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">295</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">383</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2" VALIGN="top"> <HR NOSHADE COLOR="Black"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="top"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom"><B>TOTAL REVENUES</B></TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">9,207</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">9,249</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom"><B>EXPENSES</B></TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;Departmental</TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">2,430</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">2,482</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;Percentage rent</TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">3,319</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">3,256</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;Advertising</TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">585</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">597</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT"
     VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     &nbsp;Other</TD>
   <TD ALIGN="LEFT" VALIGN="bottom"></TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">2,471</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">2,442</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2" VALIGN="top"> <DIV ALIGN="right"></DIV>
   <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="top"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom"><B>TOTAL EXPENSES</B></TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">8,805</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">8,777</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2" VALIGN="top"> <HR NOSHADE COLOR="Black"
     SIZE="1"> </TD>
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="top"> <HR NOSHADE COLOR="Black" SIZE="1"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="bottom"><B>NET INCOME</B></TD>
   <TD ALIGN="LEFT" VALIGN="bottom"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">402</TD>
   <TD ALIGN="LEFT" VALIGN="bottom">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="bottom">473</TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="LEFT" COLSPAN="2" VALIGN="top"> <HR NOSHADE COLOR="Black"
     SIZE="2"> </TD>
   <TD ALIGN="LEFT" VALIGN="top">&nbsp;</TD>
   <TD ALIGN="RIGHT" VALIGN="top"> <HR NOSHADE COLOR="Black" SIZE="2"> </TD>
   <TD ALIGN="LEFT">&nbsp;</TD>
  </TR>
 </TABLE>

 <TABLE WIDTH="100%" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR>
   <TD WIDTH="11%"><FONT
   FACE="Courier New" SIZE="-1">
   <A NAME="P435_32149"></A>
   </FONT>ITEM 2.</TD>
   <TD WIDTH="89%">MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
     AND</TD>
  </TR>
  <TR>
   <TD WIDTH="11%">&nbsp;</TD>
   <TD WIDTH="89%"> RESULTS OF OPERATIONS.</TD>
  </TR>
 </TABLE>
 <P>&nbsp; </P>
 <P>GENERAL</P>

   <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
   discussion should be read in conjunction with the InnSuites Hospitality
   Trust condensed consolidated financial statements and notes thereto and the
   InnSuites Hotels, Inc. (the &quot;Lessee&quot;) unaudited condensed
   statements of operations appearing elsewhere in this quarterly report. </P>

   <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust is a real
   estate investment trust, which owns the sole general partner interest in the
   Partnership. In order for the Trust to qualify as a REIT under the Code,
   neither the Trust nor the Partnership can operate the Hotels. Therefore,
   each of the Hotels is leased to, and operated by, the Lessee pursuant to a
   Percentage Lease. Each Percentage Lease obligates the Lessee to pay rent
   equal to the greater of a minimum rent or a percentage rent based on the
   gross revenues of each hotel. The Lessee also holds the franchise agreement
   for each of the Hotels. The Lessee is owned 9.8% by InnSuites Innternational
   Hotels, Inc., an entity owned by Wirth and his wife. The Trust's principal
   source of cash flows is distributions from the Partnership, which are
   dependent upon lease payments from the Lessee pursuant to the Percentage
   Leases. The Lessee's ability to make payments to the Partnership pursuant to
   the Percentage Leases is dependent primarily upon the operations of the
   Hotels.
   <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust's Management
   intends to restructure and acquire the Lessee in January 2001 following the
   guidelines of the REIT Modernization Act.</P>

   <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At April 30, 2000, the
   Trust owned a 45.1% interest in the Hotels through its sole general
   partner's interest in the Partnership. This change in ownership resulted
   primarily from the following transactions occurring between February 1, 1999
   and April 2, 1999: </P>
 <BLOCKQUOTE> <BLOCKQUOTE> <P>
 <A NAME="P449_33940"></A>
 On March 15, 1999, the Trust purchased 1 million additional general partner
   units in the Partnership for $2 million. This transaction was fully funded
   by Wirth who provided an unsecured loan to the Trust at 7% interest payable
   annually beginning March 15, 2000. The unpaid principal balance and accrued
   interest is due on March 15, 2004. </P>
 <P>On April 2, 1999, the Partnership made an unsecured loan to the Trust in
   the amount of $2.6 million. Annual interest only payments are due on March 1
   of each year and are based on a 7% interest rate. The unpaid principal
   balance is due at maturity on April 2, 2006. The Trust used the proceeds of
   that loan to purchase 1.3 million general partner units in the Partnership.
   The money loaned by the Partnership was generated by refinancing the
   Northern Phoenix hotel and borrowing an additional $1.8 million that was
   secured by a mortgage on that property. The original mortgage note was
   restructured to match the terms of the refinanced note, which bears interest
   at 8.25% and matures on April 1, 2014. Monthly principal and interest
   payments began on April 1, 1999.</P>
 <P>As of April 2, 1999, the Trust transferred, at historical cost, its
   interest in the Scottsdale property to the Partnership (approximately
   $7&#160;million) in exchange for 1.6 million general partner units.</P>
 <P> As a result of the aforementioned transactions, the Trust increased its
   ownership interest in the Partnership from approximately 18% to
   approximately 42% as of April 2, 1999.</P>
 </BLOCKQUOTE>
 </BLOCKQUOTE>

   <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expenses of the
   Trust consist primarily of property taxes, insurance, corporate overhead,
   interest on mortgage debt and depreciation of the Hotels. Under the terms of
   its Partnership Agreement, the Partnership is required to reimburse the
   Trust for all such expenses. The Percentage Leases provide for the payment
   of base rent and percentage rent. For the three month period ended April 30,
   2000, base rent and percentage rent in the aggregate amount of $3.3 million
   was earned by the Trust. The principal determinant of percentage rent is the
   Lessee's room revenues at the Hotels, as defined by the Percentage Leases.
   Therefore, management believes that a</P>
 <P></P>
 <P>review of the historical performance of the operations of the Hotels,
   particularly with respect to occupancy, average daily rate
   (&quot;ADR&quot;), calculated as total room revenue divided by number of
   rooms sold, and revenue per available room, calculated as total room revenue
   divided by number of rooms available (known as &quot;REVPAR&quot;), is
   appropriate for understanding revenue from the Percentage Leases. In
   comparing the first quarters of fiscal 2001 and 2000, ADR decreased $2.13 or
   2.76% to $74.99 in the first quarter of fiscal 2001 from $77.12 in the first
   quarter of fiscal 2000, primarily due to a conscious effort to drive
   additional occupancy by managing down the ADR. Occupancy increased by 5.63%
   to 75.0% in first quarter of fiscal 2001 from 71.0% in the first quarter of
   fiscal 2000 primarily the result of the rate management activity. Increased
   occupancy rates resulted in an increase in REVPAR of $1.52 or 2.78% to
   $56.27 in the first quarter of fiscal 2001 from $54.75 in the first quarter
   of fiscal 2000.</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows certain historical
   financial and other information for the periods indicated.</P>
 <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600">
  <TR>
   <TD>&nbsp;</TD>
   <TH COLSPAN="6"> <B>FOR THE THREE MONTHS ENDED
   <BR>
   APRIL 30,</B> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
   <TH>&nbsp;</TH>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TH COLSPAN="2"> <B>2000</B> <HR NOSHADE ALIGN="right" WIDTH="100%"
     SIZE="1"> </TH>
   <TH>&nbsp;</TH>
   <TH>&nbsp;</TH>
   <TH COLSPAN="2"> <DIV ALIGN="center"></DIV>
   <B>1999</B> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
   <TH>&nbsp;</TH>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD>Occupancy</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">75.00 </DIV>
   </TD>
   <TD>%</TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">71.00 </DIV>
   </TD>
   <TD>%</TD>
  </TR>
  <TR>
   <TD>Average Daily Rate (ADR)</TD>
   <TD> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD> <DIV ALIGN="right"> 74.99 </DIV>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD> <DIV ALIGN="right"> 77.12 </DIV>
   </TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD>Revenue Per Available Room (REVPAR) </TD>
   <TD> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD> <DIV ALIGN="right"> 56.27 </DIV>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD> <DIV ALIGN="right"> 54.75 </DIV>
   </TD>
   <TD>&nbsp;</TD>
  </TR>
 </TABLE>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No assurance can be given that the trends
   reflected in this data will continue or that Occupancy, ADR and REVPAR will
   not decrease as a result of changes in national or local economic or
   hospitality industry conditions.</P>
 <P>
 <A NAME="P484_37936"></A>
 Results of Operations of the Trust for the three months ended April 30, 2000
   compared to the three months ended April 30, 1999</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended April 30, 2000,
   the Trust had revenues of approximately $3.3 million compared to a similar
   amount for the three months ended April 30, 1999. Total expenses increased
   approximately $43,000 or 1.9% from approximately $2,292,000 for the three
   months ended April 30, 1999.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate depreciation for the three
   months ended April 30, 2000 compared to the three months ended April 30,
   1999 increased approximately $48,000 or 7.7% to approximately $666,000 from
   approximately $618,000, respectively. The increase was primarily due to an
   increase in capitalized refurbishment costs in the first quarter of fiscal
   2001.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate and personal property taxes,
   insurance and ground rent decreased approximately $33,000 or 8.7% to
   approximately $343,000 from approximately $376,000 in comparing the three
   months ended April 30, 2000 and 1999, respectively. The decrease was
   primarily due to successful and ongoing efforts to reduce real and personal
   property tax assessments made by local and state governments.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses include
   overhead charges for management, accounting, shareholder and legal services
   for the Trust. In comparing general and administrative expenses for the
   quarters ended April 30, 2000 and 1999, general and administrative expenses
   decreased approximately $48,000 or 9.4% to approximately $469,000 from
   approximately $517,000, respectively. The decrease of approximately $48,000
   was primarily due to a combination of the final settlement of accounting and
   legal charges of approximately $300,000 associated with the Trust's closing
   of the Cleveland office in the first quarter ended April 30, 1999 and the
   provision of approximately $255,000 for uncollectible rent in the first
   quarter ended April 30, 2000.</P>
 <P></P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense increased
   approximately $61,000 or 7.8% to approximately $841,000 from approximately
   $780,000 in comparing the three months ended April 30, 2000 and 1999,
   respectively. Interest on mortgage notes payable increased approximately
   $41,000 or 8.3% to approximately $545,000 from approximately $504,000 in
   comparing the three months ended April 30, 2000 and 1999, respectively. The
   increase was primarily due to net additional borrowings of approximately
   $2.3 million during fiscal 2000 for a loan modification relating to the
   Northern Phoenix property and the refinancing of the San Diego property.
   Interest on notes payable to related parties increased approximately $25,000
   or 97.7% to approximately $50,000 from approximately $25,000 due to
   additional loans from Wirth during the second half of fiscal 2000. These
   were partially offset by a slight decrease in the variable rate paid on the
   $12 million credit facility.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of loan fees was approximately
   $16,000 for the three months ended April 30, 2000.</P>
 <P>Funds from Operations (FFO)</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust notes that industry analysts and
   investors use Funds From Operations (FFO) as another tool to evaluate and
   compare equity REITs. The Trust also believes it is meaningful as an
   indicator of net income excluding most non-cash items and provides
   information about the Trust's cash available for distributions, debt service
   and capital expenditures. The Trust follows the March 1995 interpretation of
   the National Association of Real Estate Investment Trusts
   (&quot;NAREIT&quot;) definition of FFO which is calculated (in the Trust's
   case) as net income plus depreciation and amortization, and loss on
   disposals and extraordinary items, if applicable. FFO does not represent
   cash flow from operating activities in accordance with generally accepted
   accounting principles (&quot;GAAP&quot;) and is not indicative of cash
   available to fund all of the Trust's cash needs. FFO should not be
   considered as an alternative to net income or any other GAAP measure as an
   indicator of performance and should not be considered as an alternative to
   cash flows as a measure of liquidity. In addition, the Trust's FFO may not
   be comparable to other companies' FFO due to differing methods of
   calculating FFO and varying interpretations of the NAREIT definition.</P>
 <P>
 <A NAME="P517_42382"></A>
 </P>
 <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600">
  <TR>
   <TD>&nbsp;</TD>
   <TH COLSPAN="7" NOWRAP><B>FUNDS FROM OPERATIONS
   <BR>
   FOR THE THREE MONTHS
   <BR>
   ENDED APRIL 30,</B> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TH>
   <TH>&nbsp;</TH>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TH COLSPAN="7"> <DIV ALIGN="center"><B>(amounts in thousands)</B></DIV>
   </TH>
   <TH>&nbsp;</TH>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TH COLSPAN="4"> <DIV ALIGN="center">2000</DIV>
   </TH>
   <TH>&nbsp;</TH>
   <TH>&nbsp;</TH>
   <TH> <DIV ALIGN="center">1999</DIV>
   </TH>
   <TH>&nbsp;</TH>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TD COLSPAN="4"> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD NOWRAP>Net income attributable to common stockholders</TD>
   <TD COLSPAN="3"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD> <DIV ALIGN="right">392</DIV>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">379</DIV>
   </TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD>Depreciation </TD>
   <TD COLSPAN="3"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD> <DIV ALIGN="right">666</DIV>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">618</DIV>
   </TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD>Minority interest share of depreciation</TD>
   <TD COLSPAN="3"> <DIV ALIGN="right"></DIV>
   </TD>
   <TD> <DIV ALIGN="right">(366</DIV>
   </TD>
   <TD> <DIV ALIGN="left">) </DIV>
   </TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">(398</DIV>
   </TD>
   <TD> <DIV ALIGN="left">)</DIV>
   </TD>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TD COLSPAN="4"> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="1"> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD>Funds from Operations (FFO)</TD>
   <TD COLSPAN="3"> <DIV ALIGN="right">$</DIV>
   </TD>
   <TD> <DIV ALIGN="right">692</DIV>
   </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <DIV ALIGN="right">599</DIV>
   </TD>
   <TD>&nbsp;</TD>
  </TR>
  <TR>
   <TD>&nbsp;</TD>
   <TD COLSPAN="4"> <HR NOSHADE ALIGN="center" WIDTH="100%" SIZE="2"> </TD>
   <TD>&nbsp;</TD>
   <TD>&nbsp;</TD>
   <TD> <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="2"> </TD>
   <TD>&nbsp;</TD>
  </TR>
 </TABLE>
 <P>&nbsp;</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FFO increased to approximately $692,000 from
   approximately $599,000 when comparing the first quarters of fiscal 2001 and
   2000 ended April 30, 2000 and 1999, respectively. The increase of
   approximately $93,000 or 15.5% was primarily due to the increased ownership
   interest that the Trust has in the Partnership.</P>
 <P>Results of Operations of InnSuites Hotels Inc., the Lessee, for the three
   months ended April 30, 2000 compared to the three months ended April 30,
   1999</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended April 30, 2000,
   the Lessee had total revenues of approximately $9.2 million compared to
   approximately the same amount for the three months ended April 30, 1999.
   Although ADR decreased by $2.13 or 2.76% to $74.99 from $77.12 when
   comparing the three months ended April 30, 2000 and 1999, respectively,
   occupancy increased 5.63% to 75.0% from 71.0%. Total expenses increased
   approximately $28,000 or less than 1%, remaining at approximately $8.8
   million.</P>
 <P></P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Departmental expenses, which include
   operating expenses for the rooms, food and beverage, telecommunications, and
   miscellaneous departments, decreased approximately $52,000 or 2.1% to
   approximately $2.4 million from approximately $2.5 million for the three
   months ended April 30, 2000 and 1999, respectively. This decrease was
   primarily due to management's efforts to increase operational efficiency to
   reduce costs per occupied room.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage lease expense increased by
   approximately $63,000 or 2.0% remaining at approximately $3.3 million for
   the three month periods ended April 30, 2000 and 1999. The increase was
   primarily due to an increase in room revenues, which the percentage lease
   expenses are primarily based on, for the three months ended April 30,
   2000.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advertising expense for the three months
   ended April 30, 2000 was approximately $585,000.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses, including general and
   administrative, maintenance, hospitality, utility, and insurance expenses,
   was approximately $2.5 million for the three months ended April 30, 2000
   compared to approximately $2.4 million for the three months ended April 30,
   1999. The increase of approximately $29,000 or 1.2% was primarily due to
   increased utility and hospitality expenses resulting from the 5.63% increase
   in occupancy.</P>
 <P>LIQUIDITY AND CAPITAL RESOURCES</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust, through its ownership interest in
   the Partnership, will have its proportionate share of the benefits and
   obligations of the Partnership's ownership interests in the Hotels. The
   Trust's principal sources of cash to meet its cash requirements, including
   distributions to its shareholders, is its share of the Partnership's cash
   flow. The Partnership's principal source of revenue is rent payments under
   the Percentage Leases. The Lessee's obligations under the Percentage Leases
   are unsecured and its ability to make rent payments to the Partnership under
   the Percentage Leases, and the Trust's liquidity, including its ability to
   make distributions to its shareholders, will depend upon the ability of the
   Lessee to generate sufficient cash flow from hotel operations. For the three
   months ended April 30, 2000 and 1999, the Trust recorded a provision of
   approximately $255,000 and $0 for uncollectible receivables, respectively.
   These charges reflect the Trust's assessment of the collectibility of its
   receivables, which primarily consists of rent receivable from the Lessee,
   based on an evaluation of the Lessee's estimated future cash flows. The
   Trust's management may restructure and acquire the Lessee in January 2001
   following the guidelines of the REIT Modernization Act.</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April 30, 2000, the Trust has no
   commitments for capital expenditures beyond a 4% reserve for refurbishment
   and replacements set aside annually, as described below.</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust intends to acquire and develop
   additional hotels and expects to incur indebtedness to fund those
   acquisitions and developments. The Trust may also incur indebtedness to meet
   distribution requirements imposed on a REIT under the Code to the extent
   that working capital and cash flow from the Trust's investments are
   insufficient to make the required distributions. The terms of the line of
   credit discussed below permit borrowings for that purpose, but impose
   certain limitations on the Trust's ability to engage in other borrowings.</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;On April 16, 1998, the Trust obtained a $12 million
   Credit Facility (the &quot;Credit Facility&quot;) from Pacific Century Bank
   to assist it in its funding of the acquisition and development of additional
   hotels and for certain other business purposes. Borrowings under the Credit
   Facility are secured by first mortgages on three of the Hotels. The Trust
   has drawn $11.3 million from its line of credit, which charges interest at a
   variable interest rate. By its terms, the Credit Facility will expire in
   approximately one year on April 16, 2001, subject to renewal. The terms of
   the Credit Facility require the Trust to maintain a net worth (combined with
   minority interest) of not less than $15 million and, as of the end of each
   fiscal quarter, maintain a debt to net worth ratio of not greater than 1.75
   to 1.0 (renegotiated), a net operating income to debt service relating to
   encumbered properties ratio of not less than 1.30 to 1.0, and a net
   operating income to debt
 service ratio of not less than 1.25 to 1.0. The Trust may prepay the Credit
   Facility, subject to a prepayment penalty of $250 plus a yield-maintenance
   penalty. During the term of the Credit Facility the Trust may not further
   encumber its collateral, sell its collateral, change the nature of its
   business, or unreasonably suspend its business. </P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust may seek to increase the amount of
   its Credit Facility, negotiate additional credit facilities, or issue debt
   instruments. Any debt incurred or issued by the Trust may be secured or
   unsecured, long-term, medium-term or short-term, bear interest at a fixed or
   variable rate and be subject to such other terms as the Trust considers
   prudent.</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust will acquire or develop additional
   hotels only as suitable opportunities arise, and the Trust will not
   undertake acquisition or redevelopment of properties unless adequate sources
   of financing are available. Funds for future acquisitions or development of
   hotels are expected to be derived, in whole or in part, from borrowings
   under the Credit Facility or other borrowings or from the proceeds of
   additional issuances of shares of beneficial interest or other securities.
   However, there can be no assurance that the Trust will successfully acquire
   or develop additional hotels.</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Partnership will contribute to a Capital
   Expenditures Fund (the &quot;Fund&quot;) on a continuing basis, from the
   rent paid under the Percentage Leases, an amount equal to 4% of the Lessee's
   revenues from operation of the Hotels. The Fund is intended to be used for
   capital improvements to the Hotels and refurbishment and replacement of
   furniture, fixtures and equipment, in addition to other uses of amounts in
   the Fund considered appropriate from time to time. The Partnership
   anticipates making similar arrangements with respect to future hotels that
   it may acquire or develop. During fiscal quarter ended April 30, 2000, the
   Hotels spent approximately $311,494 for capital expenditures. The Trust
   considers the majority of these improvements to be revenue-producing.
   Therefore, these amounts have been capitalized and are being depreciated
   over their estimated useful lives. The Lessee also spent $444,215 during the
   first fiscal quarter ended April 30, 2000 on repairs and maintenance to the
   Hotels and these amounts have been charged to expense as incurred.</P>
 <P>INFLATION</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust's revenues initially will be based
   on the Percentage Leases which will result in changes in the Trust's
   revenues based on changes in the underlying Hotel revenues. Therefore, the
   Trust initially will be relying entirely on the performance of the Hotels
   and the Lessee's ability to increase revenues to keep pace with inflation.
   Operators of hotels in general, and the Lessee in particular, can change
   room rates quickly, but competitive pressures may limit the Lessee's ability
   to raise rates faster than inflation.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust's largest fixed expense is the
   depreciation of the investment in Hotel properties. The Trust's variable
   expenses, which are subject to inflation, represented approximately 24.4% of
   revenues for the fiscal quarter ended April 30, 2000. These variable
   expenses (general and administrative costs, as well as real estate and
   personal property taxes, property and casualty insurance and ground rent)
   are expected to grow with the general rate of inflation.</P>
 <P>SEASONALITY</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Hotels' operations historically have
   been seasonal. The six southern Arizona hotels experience their highest
   occupancy in the first fiscal quarter and, to a lesser extent, the fourth
   fiscal quarter. The second fiscal quarter tends to be the lowest occupancy
   period at those six southern Arizona hotels. This seasonality pattern can be
   expected to cause fluctuations in the Trust's quarterly lease revenue under
   the Percentage Leases. The hotels located in northern Arizona and California
   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 hotel business. To the extent that cash flow from
   operations is
 insufficient during any quarter, because of temporary or seasonal fluctuations
   in lease revenue, the Trust may utilize other cash on hand or borrowings to
   make distributions to its shareholders. No assurance can be given that the
   Trust will make distributions in the future.</P>
 <P>YEAR 2000 COMPLIANCE</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust and the Lessee have upgraded their
   computer accounting programs and the Lessee upgraded its computerized
   property management system along with necessary hardware. The new systems
   have been warranted to be Year 2000 compliant. As of June 14, 2000, no
   computer or software problems relating to the Year 2000 have been
   discovered. However, problems relating to the Year 2000 could still
   arise.</P>
 <P>FORWARD-LOOKING STATEMENTS</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain statements in this Form 10-Q
   constitute &quot;forward-looking statements&quot; within the meaning of
   Section 27A of the Securities Act of 1933 and Section 21E of the Securities
   Exchange Act of 1934. The Trust intends that such forward-looking statements
   be subject to the safe harbors created by such Acts. Those forward-looking
   statements include statements regarding the intent, belief or current
   expectations of the Trust, its Trustees or its officers in respect of (i)
   the declaration or payment of dividends; (ii) the leasing, management or
   operation of the Hotels; (iii) the adequacy of reserves for renovation and
   refurbishment; (iv) the Trust's financing plans; (v) the Trust's position
   regarding investments, acquisitions, developments, financings, conflicts of
   interest and other matters; (vi) the Trust's continued qualification as a
   REIT; and (vii) trends affecting the Trust's or any hotel's financial
   condition or results of operations. The words and phrases &quot;looking
   ahead&quot;, &quot;we are confident&quot;, &quot;should be&quot;, &quot;will
   be&quot;, &quot;predicted&quot;, &quot;believe&quot;, &quot;expect&quot;,
   &quot;anticipate&quot; and similar expressions identify forward-looking
   statements.</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These forward-looking statements reflect the
   Trust's current views in respect of future events and financial performance,
   but are subject to many uncertainties and factors relating to the operations
   and business environment of the hotels which may cause the actual results of
   the Trust to differ materially from any future results expressed or implied
   by such forward-looking statements. Examples of such uncertainties include,
   but are not limited to: fluctuations in hotel occupancy rates; changes in
   room rental rates which may be charged by the Lessee in response to market
   rental rate changes or otherwise; interest rate fluctuations; changes in
   federal income tax laws and regulations; competition; any changes in the
   Trust's financial condition or operating results due to acquisitions or
   dispositions of hotel properties; real estate and hospitality market
   conditions; hospitality industry factors; and 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. The Trust does not
   undertake any obligation to update publicly or revise any forward-looking
   statements whether as a result of new information, future events or
   otherwise. Pursuant to Section 21E(b)(2)(E) of the Securities Exchange Act
   of 1934, the qualifications set forth hereinabove are inapplicable to any
   forward-looking statements in this Form 10-Q relating to the operations of
   the Partnership.</P>
 <P>
 <A NAME="P640_56421"></A>
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</P>
 <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust is exposed to interest rate risk
   primarily as a result of its mortgage notes payable, notes payable to banks
   and other notes payable. Proceeds from these loans are used to maintain
   liquidity, fund capital expenditures and expand the Trust's real estate
   investment portfolio and operations. The Trust's interest rate risk
   management objective is to limit the impact of interest rate changes on
   earnings and cash flows and to lower its overall borrowing costs. To achieve
   its objectives, the Trust borrows using fixed rate debt, when possible.
   There have been no significant changes in the Trust's debt structure during
   the quarter ended April 30, 2000.</P>
 <P></P>
 <P>
 <A NAME="P653_57150"></A>
 PART II</P>
 <P>OTHER INFORMATION</P>
 <P>
 <A NAME="P658_57174"></A>
 ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; EXHIBITS AND REPORTS
   ON FORM 8-K.</P>
 <P>(a)</P>
 <BLOCKQUOTE> <BLOCKQUOTE>
 <TABLE WIDTH="600" CELLSPACING="0" CELLPADDING="0">
  <TR>
   <TD ALIGN="center" WIDTH="175"> EXHIBIT
   <BR>
   NUMBER <HR NOSHADE ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
   <TD ALIGN="center" WIDTH="19">&nbsp;</TD>
   <TD VALIGN="bottom" ALIGN="center" WIDTH="404"> EXHIBIT <HR NOSHADE
     ALIGN="right" WIDTH="100%" SIZE="1"> </TD>
  </TR>
  <TR>
   <TD WIDTH="175"> <DIV ALIGN="center">27.1</DIV>
   </TD>
   <TD WIDTH="19">&nbsp;</TD>
   <TD WIDTH="404"> <DIV ALIGN="center">Financial Data Schedule.(1)</DIV>
   </TD>
  </TR>
 </TABLE>
 </BLOCKQUOTE>
 </BLOCKQUOTE>
 <P>(1) Filed only in electronic format pursuant to Item 601(c) of Regulation
   S-K.</P>
 <P>(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPORTS ON FORM 8-K.</P>
 <P>No Current Reports on Form 8-K were filed by the Trust during the fiscal
   quarter ended April 30, 2000.</P>
 <P></P>
 <P ALIGN="center"> SIGNATURES</P>
 <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the
   Securities Exchange Act of 1934, the Registrant has duly caused this report
   to be signed on its behalf by the undersigned thereunto duly authorized. </P>
 <TABLE WIDTH="690" CELLSPACING="0" CELLPADDING="0">
  <TR>
   <TD WIDTH="44%">Dated: June 14, 2000 </TD>
   <TD COLSPAN="3">INNSUITES HOSPITALITY TRUST (Registrant)</TD>
  </TR>
  <TR>
   <TD WIDTH="44%">&nbsp;</TD>
   <TD COLSPAN="3">&nbsp;</TD>
  </TR>
  <TR>
   <TD WIDTH="44%" ROWSPAN="3">&nbsp;</TD>
   <TD COLSPAN="3" ROWSPAN="3">By: /s/ Marc E. Berg</TD>
  </TR>
  <TR>
  </TR>
  <TR>
  </TR>
  <TR>
   <TD WIDTH="44%">&nbsp;</TD>
   <TD WIDTH="3%">&nbsp;</TD>
   <TD COLSPAN="2" VALIGN="top"> <HR NOSHADE ALIGN="right" WIDTH="100%"
     SIZE="1"> </TD>
  </TR>
  <TR>
   <TD WIDTH="44%" HEIGHT="41">&nbsp;</TD>
   <TD WIDTH="3%" HEIGHT="41">&nbsp;</TD>
   <TD COLSPAN="2" HEIGHT="41">Marc E. Berg, Executive Vice President,
     Treasurer and Secretary </TD>
  </TR>
  <TR>
   <TD WIDTH="44%" HEIGHT="23">&nbsp;</TD>
   <TD COLSPAN="3" HEIGHT="23">&nbsp;</TD>
  </TR>
  <TR>
   <TD WIDTH="44%">&nbsp;</TD>
   <TD COLSPAN="3">And By:&nbsp; /s/ Anthony B. Waters</TD>
  </TR>
  <TR>
   <TD WIDTH="44%">&nbsp;</TD>
   <TD WIDTH="3%">&nbsp;</TD>
   <TD WIDTH="5%">&nbsp;</TD>
   <TD WIDTH="48%" VALIGN="top"> <HR NOSHADE ALIGN="right" WIDTH="100%"
     SIZE="1"> </TD>
  </TR>
  <TR>
   <TD WIDTH="44%">&nbsp;</TD>
   <TD WIDTH="3%">&nbsp;</TD>
   <TD WIDTH="5%">&nbsp;</TD>
   <TD WIDTH="48%">Anthony B. Waters, Chief Financial Officer</TD>
  </TR>
 </TABLE>
 <P> </P>
 </BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27.1
<SEQUENCE>2
<FILENAME>0002.txt
<DESCRIPTION>FINANCIAL DATA SCHEDULE
<TEXT>

<TABLE> <S> <C>

<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET OF THE REGISTRANT AS OF APRIL 30, 2000 AND JANUARY 31, 2000 AND THE
STATEMENTS OF OPERATIONS OF THE REGISTRANT FOR THE THREE MONTHS ENDED APRIL 30,
2000 AND 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>

<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JAN-31-2001
<PERIOD-START>                             FEB-01-2000
<PERIOD-END>                               APR-30-2000
<CASH>                                         225,846
<SECURITIES>                                         0
<RECEIVABLES>                                  595,715
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0<F1>
<PP&E>                                      64,125,135
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                              64,946,696
<CURRENT-LIABILITIES>                                0<F1>
<BONDS>                                     56,070,316
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                   8,876,381
<TOTAL-LIABILITY-AND-EQUITY>                64,946,696
<SALES>                                              0
<TOTAL-REVENUES>                             3,321,309
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                             2,334,537
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             840,827
<INCOME-PRETAX>                                392,489
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            392,489
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   392,489
<EPS-BASIC>                                        .16
<EPS-DILUTED>                                      .10
<FN>
<F1>The Registrant utilizes an unclassified Balance Sheet. Therefore, the captions
"TOTAL CURRENT ASSETS" and "TOTAL CURRENT LIABILITIES" are not applicable.
</FN>


</TABLE>
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