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Note 23 - Subsequent Events | 12 Months Ended
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Jan. 31, 2015
Notes to Financial Statements |
Subsequent Events [Text Block] | 23. SUBSEQUENT EVENTS Effective February 5, 2015, the Board of Trustees of the Trust adopted the 2015 Equity Incentive Plan, subject to shareholders approval, under which, up to 1,600,000 Shares of Beneficial Interest of the Trust are authorized to be issued pursuant to grant of stock options, stock appreciation rights, restricted shares, restricted share units or other awards. The purpose of the 2015 Plan is to promote the interests of the Trust and its shareholders by providing certain employees and members of the Board of Trustees, who are largely responsible for the management and growth of the subsidiary of the Trust, IBC Hotels, LLC, with incentives and rewards to encourage them to continue in the service of the Trust. On February 5, 2015, the Board of Trustees of the Trust granted to Pamela Barnhill, President, Vice Chairperson of the Board of Trustees and Chief Operating Officer of the Trust and IBC Hotels Founder and President, pursuant to the Trust’s 2015 Equity Incentive Plan, a four-year option for the purchase of 1,000,000 Shares of Beneficial Interest of the Trust at an exercise price of $3.50 per share, exercisable to the extent of vesting of the stock options and GAAP pre-tax profits of IBC Hotels, LLC which must be greater than or equal to performance objectives described in the stock option agreement. The option is subject to shareholders’ approval of the 2015 plan. On April 24, 2015, the Board of Trustees of the Trust granted to James Wirth, Chairman of the Board of Trustees and CEO of the Trust, Marc Berg, Executive Vice President and Trustee and Adam Remis, Chief Financial Officer of the Trust, pursuant to the Trust’s 2015 Equity Incentive Plan and the Trust’s 2015 Stock Option Form Agreement filed as Exhibit 10.42, each a four-year option for the purchase of 60,000 Shares of Beneficial Interest of the Trust at an exercise price of $3.50 per share, exercisable to the extent of vesting of the stock options and GAAP pre-tax profits of IBC Hotels, LLC which must be greater than or equal to performance objectives described in the stock option agreement. The option is subject to shareholders’ approval of the 2015 plan. On April 24, 2015, the Trust and Partnership entered into a restructuring agreement with Partnership to allow for the sale of non-controlling interest units in Tucson Saint Mary’s Suite Hospitality LLC for $10,000 per unit, which operates one of the Tucson, Arizona hotel properties, then wholly-owned by the Partnership. Under the agreement, the Partnership agreed to either purchase or bring in other investors to purchase up to 350 units, which represents approximately 50.07% of the outstanding partnership units in the Tucson, Arizona entity, on a post-transaction basis, and the parties agreed to restructure the limited liability agreement of the Tucson, Arizona entity. The Board of Trustees approved this restructuring on April 24, 2015. Under the restructured limited liability agreement, the Partnership was confirmed as the Administrative Member of the Tucson, Arizona entity but Rare Earth Financial, LLC could be elected in the future as Administrative Member without the Partnership voting on the board resolution. All Membership Interests will be entitled to receive priority distributions annually of $700 per $10,000 Interest from May 15, 2015 through April 20, 2020, Priority distributions will be paid first to Class A Interests, second to Class B Interests and will be cumulative. After April 30, 2020, all Membership Interests will be entitled to annual distributions of $700 per $10,000 Interest, which will be cumulative. The holders of Class A units may convert all of part of their investment at any time up to January 31, 2018 into 2,857 IHT Shares of Beneficial Interest for each $10,000 interest subject to IHT Shareholder approval and other required approvals. Thereafter each $10,000 interest is convertible into 2,500 IHT Shares of Beneficial Interest. On April 24, 2015, the Board of Trustees of the Trust agreed with Suite Hotels, LLC, an affiliate of James Wirth, Chairman of the Board of Trustees and CEO of the Trust, to terminate the agreement to have the Trust purchase 51% of the partnership interests of Fort Worth / Dallas Suite Hospitality Partnership which operates Hotel Trinity. The original intent of the Trust to purchase 51% of Hotel Trinity was to increase IHT’s equity in compliance with the NYSE MKT requirements but over time, the benefits decreased because of Hotel Trinity’s non-cash depreciation and the decreased book value of the property.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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