CORRESP 1 filename1.htm

 

[Letterhead of Thompson Hine LLP]

 

February 22, 2006

 

 

By EDGAR and Fax

 

Linda van Doorn

Senior Assistant Chief Accountant

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C.  20549

 

RE:

InnSuites Hospitality Trust

 

Form 10-K for the year ended January 31, 2005

 

Form 10-Q for the quarter ended April 30, 2005

 

Form 10-Q for the quarter ended July 31, 2005

 

Form 10-Q for the quarter ended October 31, 2005

 

File No. 1-07062

 

 

Dear Ms. van Doorn:

 

This letter is in response to your letter dated February 17, 2006 addressed to Anthony B. Waters, Chief Financial Officer of InnSuites Hospitality Trust (the “Trust”).

 

Your letter indicated that the Securities and Exchange Commission’s staff has an additional comment as a result of your review of the Trust’s response letter dated February 13, 2006, and requests further information in order to better understand the Trust’s disclosure.

 

The additional staff comment from your February 17 letter is set forth in full below.

 

Form 10-Q for the quarter ended July 31, 2005

 

Consolidated Financial Statements

 

Note 6 – Sale of Hotel Property, page 9

 

1.               We have read your response and supplemental schedule provided to us in connection with prior comment 1.  Please file the supplemental schedule as correspondence on EDGAR.  As it relates to your proposed accounting treatment, we would not object to your accounting for the gain on the sale of the Phoenix hotel as income provided that the appraised value of the property is considered to be a reliable estimate of the fair value of the property and provided that your management and licensing agreements which are based on a percentage of revenue and paid monthly approximates market value.  Refer to paragraph 31 of SFAS 66.  This position is also based on the presumption that there are no other forms of continuing involvement as discussed in SFAS 66 that would preclude gain recognition.  Please advise us.

 


 

Pursuant to your request, we will file the supplemental schedule that accompanied our response of February 13, 2006 on EDGAR together with this letter.  An appraisal of the Phoenix, Arizona hotel property was conducted approximately 90 days prior to the approval of the sale by the Board of Trustees and the Trust considers the appraised value of that property to be a reliable estimate of its fair value.  The management and licensing agreements, between the Trust and Northern Phoenix Resort LLC, are based on a percentage of revenue and are paid monthly, and do not require the Trust to provide services without compensation or compensation less than prevailing rates or on terms unusual for  the services to be provided. The Trust believes that the management and licensing agreements approximate market value.  The Trust does not believe that there are any other forms of continuing involvement as discussed in SFAS 66 that would preclude gain recognition as income.

 

The Trust acknowledges that the Trust is responsible for the adequacy and accuracy of the disclosure in its filings; staff comments or changes to disclosure in response to staff comments do not foreclose the SEC from taking any action with respect to a filing; and the Trust may not assert staff comments as a defense in any proceeding initiated by the SEC or any person under the federal securities laws of the United States.

 

Please call me at (216) 566-5738 or Anthony Waters at (602) 944-1500 x207 if you have any questions.

 

Very truly yours,

 

/s/ Daniel T. Young

 

 

Daniel T. Young

 

cc:                                 James Wirth, InnSuites Hospitality Trust

Anthony Waters, InnSuites Hospitality Trust

Mark Weber, Epstein, Weber & Conover, P.L.C.

 

2


 

Phoenix Northern Resort, LLC

Ownership Interest at July 27, 2005

 

 

 

 

 

Units

 

% Units

 

Trust
Shares

 

% Shares

 

% units of
persons who
own Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anderson

 

Gary & Eugenia

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Anderson

 

Mason & Donna

 

2.00

 

1.20

%

98,606

 

1.07

%

1.20

%

Bendheim

 

Ronnie

 

2.00

 

1.20

%

29,393

 

0.32

%

1.20

%

Carroll

 

James & Ger

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Ellis

 

Dolan

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Ellis

 

Rose

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

FindeisenTr

 

Flora

 

4.00

 

2.41

%

0

 

0.00

%

0.00

%

Follmer

 

Audrey J

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Gonzales

 

Jose J.

 

13.00

 

7.83

%

0

 

0.00

%

0.00

%

Grant

 

Robert

 

4.00

 

2.41

%

1,563

 

0.02

%

2.41

%

Grieb Ttee

 

Shirley R

 

6.00

 

3.61

%

0

 

0.00

%

0.00

%

Hayden

 

Guy C

 

25.00

 

15.06

%

13,746

 

0.15

%

15.06

%

Hayes

 

Holland & Laura

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Hoffmann

 

Jewel Hunt

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Huerstel

 

Genevieve

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Jeschke

 

Robert & Mary

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Kochert ByP

 

Wayne J

 

4.00

 

2.41

%

0

 

0.00

%

0.00

%

Kochert Sur

 

Wayne J

 

4.00

 

2.41

%

0

 

0.00

%

0.00

%

Koziol

 

Thomas

 

2.00

 

1.20

%

12,104

 

0.13

%

1.20

%

Lamphere

 

WA or Elizabe

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Long

 

Chris - Linda

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

McNaughton

 

Thomas

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Monte

 

Donald A.

 

7.00

 

4.22

%

0

 

0.00

%

0.00

%

Monte

 

Richard/Carol

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Moseley

 

Paul L.

 

4.00

 

2.41

%

0

 

0.00

%

0.00

%

Murray

 

James V.

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Pelegrin

 

Larry & Mary

 

2.00

 

1.20

%

3,870

 

0.04

%

1.20

%

Rare Earth Financial

 

 

 

36.00

 

21.69

%

0

 

0.00

%

0.00

%

Rever

 

Louis G

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Rosenthal Tt

 

Dr Jean

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Rosenthal Tt

 

Dr Thomas

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Sabel

 

Arnie&Carol

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Smith

 

Dan

 

3.00

 

1.81

%

0

 

0.00

%

0.00

%

Southard

 

Fred & Lois

 

1.00

 

0.60

%

20,308

 

0.22

%

0.60

%

Tisdale

 

Vernon & Mir

 

6.00

 

3.61

%

0

 

0.00

%

0.00

%

Turpin

 

Ted

 

2.00

 

1.20

%

3,758

 

0.04

%

1.20

%

Waldmann

 

Edward

 

7.00

 

4.22

%

7,989

 

0.09

%

4.22

%

Wirth

 

James

 

2.00

 

1.20

%

0

 

0.00

%

0.00

%

Wood

 

Martin & Susan

 

1.00

 

0.60

%

0

 

0.00

%

0.00

%

Zemer Invstm

 

James

 

2.00

 

1.20

%

93,607

 

1.02

%

1.20

%

 

 

 

 

166.00

 

100.00

%

 

 

3.08

%

29.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding shares

 

 

 

9,190,289