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Other Related Party Transactions
12 Months Ended
Jan. 31, 2020
Related Party Transactions [Abstract]  
Other Related Party Transactions

20. OTHER RELATED PARTY TRANSACTIONS

 

As of January 31, 2020 and 2019, Mr. Wirth and his affiliates held 2,974,038 Class B Partnership units, which represented 23.35% of the total outstanding Partnership units. As of January 31, 2020 and 2019, Mr. Wirth and his affiliates held 5,876,683 and 5,881,683 respectively, Shares of Beneficial Interest in the Trust, which represented 61.32% and 62.84% respectively, of the total issued and outstanding Shares of Beneficial Interest.

 

As of January 31, 2020 and 2019, the Trust owned 75.89% and 74.90% of the Partnership, respectively. As of January 31, 2020, the Partnership owned a 51.01% interest in the InnSuites® hotel located in Tucson. The Trust also owned a direct 20.33% interest in one InnSuites® hotel located in Albuquerque, New Mexico.

 

The Trust directly manages the Hotels through the Trust’s wholly-owned subsidiary, InnSuites Hotels Inc. Under the management agreements, InnSuites Hotels Inc. manages the daily operations of the Hotels and the hotel owned by affiliates of Mr. Wirth. Revenues and reimbursements among the Trust, InnSuites Hotels Inc. and the Partnership have been eliminated in consolidation. The management fees for the Hotels and the two hotels owned by affiliates of Mr. Wirth are set at 5% of revenue and a monthly accounting fee of $2,000 per hotel. These agreements have no expiration date and may be cancelled by either party with 90-days written notice or 30-days written notice in the event the property changes ownership. During the years ended January 31, 2020 and 2019, the Trust recognized approximately $127,000 and $165,000, respectively of revenue.

 

During the fiscal years ended January 31, 2020 and 2019, the Trust paid Berg Investment Advisors $6,000 for additional consultative services rendered by Mr. Marc Berg, the Trust’s Executive Vice President.

 

Pamela Barnhill, former Vice Chairperson and President of the Trust, resigned in June, 2019, and is the daughter of Mr. Wirth, the Trust’s Chairman and Chief Executive Officer. Ms. Barnhill’s total compensation was $74,471 for the fiscal year ended January 31, 2019. The Trust also employs another immediate family member of Mr. Wirth who provides technology support services to the Trust, receiving a $35,000 annual salary.

 

As of January 31, 2020, the Trust had an Advance to Affiliate credit facilities with an aggregate maximum borrowing capacity of $1,000,000, which is available through June 30, 2021, and automatically renews year to year, unless either party gives six-month advance notice to terminate. Mr. Wirth, individually and thru one of his affiliates owns approximately 42% Tempe/Phoenix Airport Resort LLC. During the fiscal year ended January 31, 2020, the Trust received approximately $62,000 of interest income from Tempe/Phoenix Airport Resort LLC. As of January 31, 2020, the Trust had an amount receivable of the Advances to Affiliate credit facility of approximately $1,000,000. As of August 1, 2020, the amount receivable from the Advance to Affiliate credit facility was approximately $1,000,000, which is due from Tempe/Phoenix Airport Resort LLC.

 

As of January 31, 2020 and January 31, 2019, the Trust had approximately $161,000 and $484,000 in promissory notes, respectively, to Mr. Wirth, family members of Mr. Wirth, and Mr. Berg, the Executive Vice President of the Trust. The promissory notes arose from the repurchase of 433,900 Class B partnership units from Mr. Wirth and family members, and 40,000 Shares of Beneficial Interest from Mr. Berg. Payments totaled approximately $323,000 and approximately $306,000 during fiscal years ended January 31, 2020 and 2019, respectively.