| ý                                                                                                                                                                                                                                                                                                                                                                          | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                         |
| For      the fiscal year ended January 31, 2008.                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                         |
| o                                                                                                                                                                                                                                                                                                                                                                               | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934 |
|                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                         |
| For      the transition period      from                                 to                               . |
|                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                         |
| Commission      File No. 1-7062                                                                                                                                                                                                                                                                                                                                            |

| InnSuites      Hospitality Trust                                                            |
|---------------------------------------------------------------------------------------------|
| (Exact      Name of Registrant as Specified in Its Charter)                                 |
|                                                                                        |   |   |
| Ohio                                                                                        |   | 34-6647590 |
| (State      or Other Jurisdiction of Incorporation or Organization)                         |   | (I.R.S.      Employer Identification Number) |
|                                                                                        |   |   |
| InnSuites      Hotels Centre, 1615 E. Northern Avenue,Suite 102,      Phoenix, Arizona |   | 85020 |
| (Address      of Principal Executive Offices)                                               |   | (ZIP      Code) |
|                                                                                        |   |   |
| Registrant’s      Telephone Number, including area code: (602)      944-1500          |
|                                                                                        |

| Title of      Each Class                             |   | Name      of Exchange on Which Registered |
|-----------------------------------------------------------|--------|-------------------------------------------|
| Shares      of Beneficial Interest,without      par value |   | American      Stock Exchange              |

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----

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| ·   | changes      in occupancy and room rates achieved by our hotels and by competitive area      hotels; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | desirability      of a hotel’s geographic location and changes in traffic      patterns; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | changes      in general and local economic and market conditions, which can adversely      affect the level of business and leisure travel, and therefore the demand      for lodging and related services; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in the number of hotels operating under specific franchised      brands; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | increases      in costs due to inflation may not be able to be totally offset by      increases in room rates; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | over-building      in one or more sectors of the hotel industry and/or in one or more      geographic regions, could lead to excess supply compared to demand, and to      decreases in hotel occupancy and/or roomrates; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in travel patterns and travel costs affected by fuel    prices; |
|--------------------|------------------------------------------------------------------------------|

| ·   | changes      in governmental regulations that influence or determine wages, prices or      construction costs; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | other      unpredictable external factors, such as natural disasters, war, terrorist      attacks, epidemics, airline strikes, transportation and fuel price      increases and severe weather, may reduce business and leisure      travel; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      need to periodically repair and renovate our hotels at a cost in excess of      our standard 4% reserve; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | increases      in the cost of labor, energy, healthcare, insurance and other operating      expenses resulting in lower operatingmargins; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | the      financial condition of franchisors and travel related      companies; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | our      ability to develop and maintain positive relations with current and      potential franchisors; and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to develop our own regional “InnSuites”  brand. |
|--------------------|------------------------------------------------------------------------------|

| ·   | diversion      of management resources and disruption of our  business; |
|--------------------|-------------------------------------------------------------------------|

| ·   | the      process may be time consuming and expensive and may result in the loss of      business opportunities; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | the      Trust may not be able to successfully achieve the benefits of the sale of      any of the Hotels; and |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | perceived      uncertainties as to the Trust’s future direction may result in increased      difficulties in recruiting and retaining employees, particularly senior      management. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | fixed      labor costs; |
|--------------------|-------------------------|

| ·   | interest      rate levels; |
|--------------------|----------------------------|

| ·   | the      availability of financing; |
|--------------------|-------------------------------------|

| ·   | increases      in real property tax rates; |
|--------------------|--------------------------------------------|

| ·   | the      cost of compliance with government regulations, including zoning and tax      laws; and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | changes      in government regulations, including those governing usage, zoning and      taxes. |
|--------------------|-------------------------------------------------------------------------------------------------|

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----

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| PROPERTY                                                                |   | NUMBEROFSUITES |   | YEAR      OFCONSTRUCTION/ADDITION |   | MOST      RECENTRENOVATION      (1) |   |
|-------------------------------------------------------------------------|--------|----------------|--------|-----------------------------------|--------|-------------------------------------|--------|
|                                                                    |   |           |   |                              |   |                                |   |
| InnSuites      Hotel and Suites Airport Albuquerque Best Western        |   | 101            |   | 1975/1985                         |   | 2004                                |   |
|                                                                    |   |           |   |                              |   |                                |   |
| InnSuites      Hotel and Suites Tucson, Catalina Foothills Best Western |   | 159            |   | 1981/1983                         |   | 2005                                |   |
|                                                                    |   |           |   |                              |   |                                |   |
| InnSuites      Hotels and Suites Yuma Best Western                      |   | 166            |   | 1982/1984                         |   | 2006                                |   |
|                                                                    |   |           |   |                              |   |                                |   |
| InnSuites      Hotel and Suites Ontario Airport Best Western            |   | 150            |   | 1990                              |   | 2005                                |   |
|                                                                    |   |           |   |                              |   |                                |   |
| InnSuites      Hotels and Suites Tucson St. Mary’s                |   | 267            |   | 1960/1971                         |   | 2006                                |   |
|                                                                    |   |           |   |                              |   |                                |   |
| Total      suites                                                       |   | 843            |   |                              |   |                                |   |

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| Item      5. | MARKET FOR THE TRUST’S      SHARES, RELATED SHAREHOLDER MATTERS AND TRUST PURCHASES OF      SHARES |
|--------------|----------------------------------------------------------------------------------------------------------|

| Fiscal      Year 2008 |   | High |   | Low  |   | Dividends |   |
|-----------------------|--------|------|--------|------|--------|-----------|--------|
| First      Quarter    |   | 1.64 |   | 1.04 |   | —   |   |
| Second      Quarter   |   | 1.69 |   | 1.00 |   | —   |   |
| Third      Quarter    |   | 1.64 |   | 0.77 |   | —   |   |
| Fourth      Quarter   |   | 1.65 |   | 0.79 |   | .01       |   |

| Fiscal      Year 2007 |   | High |   | Low  |   | Dividends |   |
|-----------------------|--------|------|--------|------|--------|-----------|--------|
| First      Quarter    |   | 1.75 |   | 1.30 |   | —   |   |
| Second      Quarter   |   | 1.75 |   | 1.45 |   | —   |   |
| Third      Quarter    |   | 1.54 |   | 1.10 |   | —   |   |
| Fourth      Quarter   |   | 1.75 |   | 1.00 |   | .01       |   |

----

|                                           |   | Issuer      Purchases of Equity Securities |   |
|------------------------------------------------|--------|--------------------------------------------|--------|
| Period                                         |   | Total      Numberof      SharesPurchased   |   | Average      PricePaid      perShare |   | Total      Number of SharesPurchased      as Part ofPublicly      AnnouncedPlans |   | Maximum      Number ofShares      that May Be YetPurchased      Under thePlans |   |
| November 1      – November 30, 2007 |   | —                                    |   | $ | — |   | — |   | 334,500 |   |
| December      1 – December 31, 2007      |   | 11,700                                     |   | $ | 1.53 |   | 11,700 |   | 302,800 |  * |
| January      1 – January 31, 2008        |   | 6,950                                      |   | $ | 1.35 |   | 6,950 |   | 295,850 |   |

| Item      7. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------------|

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----

|                                          |   | For      the Year Ended January 31,                     |   |
|-----------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                          |   | 2008                                                         |   | 2007 |   |
|                                          |   |                                                         |   |   |   |
| Occupancy                                     |   |        70.86              | %      | 71.54 | % |
|                                          |   |                                                         |   |   |   |
| Average      Daily Rate (ADR)                 |   | $         77.37 |   | $           72.95 |   |
|                                          |   |                                                         |   |   |   |
| Revenue      Per Available Room (REVPAR) |   | $         54.83 |   | $           52.19 |   |

----

|                                         |   | 2008 |       | 2007   |   | Change     |   | %      Change |      |
|----------------------------------------------|--------|------|------------|--------|--------|------------|--------|---------------|-----------|
| Revenue                                      |   | $    | 22,100,135 |   | $      | 21,790,634 |   | $             | 309,501   |   | 1.4 | % |
| Operating      Income                        |   | $    | 2,981,795  |   | $      | 1,515,068  |   | $             | 1,466,727 |   | 96.8 | % |
| Net      Income (Loss)                       |   | $    | 1,119,160  |   | $      | (46,430    | )      | $             | 1,165,590 |   | >100.0 | % |
| Income      (Loss) Per Share – Basic   |   | $    | 0.12       |   | $      | (0.01      | )      | $             | 0.13      |   | >100.0 | % |
| Income      (Loss) Per Share – Diluted |   | $    | 0.07       |   | $      | (0.01      | )      | $             | 0.08      |   | >100.0 | % |

----

----

| Hotel      Property Asset Values as of January 31, 2008 |   |
|---------------------------------------------------------|--------|
| Hotel Property                                          |   | Book Value |   |   | Mortgage Balance |   |   | Sales Price |   |
| Albuquerque                                             |   | $ | 1,724,250 |   |   | $ | 1,055,619 |   |   | $ | 6,750,000 |   |
| Ontario                                                 |   |   | 6,876,408 |   |   |   | 8,134,458 |   |   |   | 24,900,000 |   |
| Tucson      Oracle                                      |   |   | 5,191,539 |   |   |   | 3,548,967 |   |   |   | 13,750,000 |   |
| Tucson      City Center                                 |   |   | 9,249,558 |   |   |   | 6,050,000 |   |   |   | 14,400,000 |   |
| Yuma                                                    |   |   | 6,360,261 |   |   |   | 985,368 |   |   |   | 15,500,000 |   |
| Totals                                                  |   | $ | 29,402,016 |   |   | $ | 19,774,412 |   |   | $ | 75,300,000 |   |

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| ·   | fluctuations      in hotel occupancy rates; |
|--------------------|---------------------------------------------|

| ·   | changes      in room rental rates that may be charged by InnSuites Hotels in response      to market rental rate changes orotherwise; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | seasonality      of our business; |
|--------------------|-----------------------------------|

| ·   | interest      rate fluctuations; |
|--------------------|----------------------------------|

| ·   | changes      in governmental regulations, including 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; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | insufficient      resources to pursue our current growthstrategy; |
|--------------------|-------------------------------------------------------------------|

| ·   | concentration      of our investments in the InnSuites Hotels®  brand; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | loss      of franchise contracts; |
|--------------------|-----------------------------------|

| ·   | real      estate and hospitality marketconditions; |
|--------------------|----------------------------------------------------|

| ·   | hospitality      industry factors; |
|--------------------|------------------------------------|

| ·   | our      ability to meet present and future debt service    obligations; |
|--------------------|--------------------------------------------------------------------------|

| ·   | terrorist      attacks or other acts of war; |
|--------------------|----------------------------------------------|

| ·   | outbreaks      of communicable diseases; |
|--------------------|------------------------------------------|

| ·   | natural      disasters; |
|--------------------|-------------------------|

| ·   | loss      of key personnel; and |
|--------------------|---------------------------------|

| ·   | local      or national economic and business conditions, including, without      limitation, conditions that may affect public securities markets      generally, the hospitality industry or the markets in which the Trust      operates or will operate. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Report      of Independent Registered Public Accounting Firm –January 31, 2008 and      2007                 | 21     |
|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                               |   |
|   | Consolidated      Balance Sheets – January 31, 2008 and 2007                                            | 22     |
|   |                                                                                                               |   |
|   | Consolidated      Statements of Operations – Years Ended January 31, 2008 and      2007                 | 23     |
|   |                                                                                                               |   |
|   | Consolidated      Statements of Shareholders’ Equity – Years Ended January 31, 2008 and      2007 | 24     |
|   |                                                                                                               |   |
|   | Consolidated      Statements of Cash Flow – Years Ended January 31, 2008 and      2007                  | 25     |
|   |                                                                                                               |   |
|   | Notes      to the Consolidated Financial Statements – January 31, 2008 and      2007                    | 26     |
|   |                                                                                                               |   |

|   | Schedule III      – Real Estate and Accumulated Depreciation | 44     |
|--------|-------------------------------------------------------------------------|--------|
|   |                                                                    |   |
|   | Schedule IV      - Mortgage Loans on Real Estate                   | 47     |

----

REPORT OF INDEPENDENT REGISTEREDPUBLIC ACCOUNTING FIRM

| To      the Shareholders and Board of Trustees of |   |   |
|---------------------------------------------------|--------|--------|
| InnSuites      Hospitality Trust                  |   |   |
| Phoenix,      Arizona:                            |   |   |

| /s/MOSS      ADAMS LLP               |   |
|--------------------------------------|--------|
|                                 |
|   Scottsdale,      Arizona |
| May      14, 2008                    |

----

CONSOLIDATED BALANCESHEETS

|                                                                                                                                                                                                            |   | JANUARY 31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|
|                                                                                                                                                                                                            |   | 2008             |        |   | 2007 |   |
| ASSETS                                                                                                                                                                                                          |   |             |        |   |   |   |
| Current      Assets:                                                                                                                                                                                            |   |             |        |   |   |   |
| Cash      and Cash Equivalents                                                                                                                                                                                  |   | $                | 299,698     |   |   |  $ | 202,691 |   |
| Restricted      Cash                                                                                                                                                                                            |   |             | 142,495     |   |   |   | 128,284 |   |
| Accounts      Receivable, including $194,491 and $0 from related parties, net of      Allowance for Doubtful Accounts of $29,000 and $115,000, as of      January 31, 2008 and 2007, respectively     |   |             | 663,278     |   |   |   | 752,232 |   |
| Prepaid      Expenses and Other Current Assets                                                                                                                                                                  |   |             | 486,438     |   |   |   | 485,636 |   |
| Total      Current Assets                                                                                                                                                                                       |   |             | 1,591,909   |   |   |   | 1,568,843 |   |
| Hotel      Properties Held for Sale, net                                                                                                                                                                        |   |             | 29,402,016  |   |   |   | — |   |
| Hotel      Properties, net                                                                                                                                                                                      |   |             | —     |   |   |   | 29,471,702 |   |
| Property,      Plant and Equipment, net                                                                                                                                                                         |   |             | 211,958     |   |   |   | 183,240 |   |
| Deferred      Finance Costs, Long-Term Portion                                                                                                                                                                  |   |             | 113,618     |   |   |   | 140,245 |   |
| Deposits,      Long-Term                                                                                                                                                                                        |   |             | 14,987      |   |   |   | 14,987 |   |
| TOTAL      ASSETS                                                                                                                                                                                               |   | $                | 31,334,488  |   |   |  $ | 31,379,017 |   |
|                                                                                                                                                                                                            |   |             |        |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                                 |   |             |        |   |   |   |   |   |
|                                                                                                                                                                                                            |   |             |        |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                     |   |             |        |   |   |   |   |   |
| Current      Liabilities :                                                                                                                                                                                 |   |             |        |   |   |   |   |   |
| Accounts      Payable and Accrued Expenses, including $0 and $518,206 accrued interest      and payables to related parties as of January 31, 2008 and 2007,      respectively                             |   | $                | 2,408,087   |   |   |  $ | 2,970,080 |   |
| Notes      Payable to Banks                                                                                                                                                                                     |   |             | 750,000     |   |   |   | 749,777 |   |
| Current      Portion of Mortgage Notes Payable                                                                                                                                                                  |   |             | 967,289     |   |   |   | 926,464 |   |
| Current      Portion of Other Notes Payable                                                                                                                                                                     |   |             | 74,582      |   |   |   | 109,486 |   |
| Current      Portion of Notes Payable to Related Parties                                                                                                                                                        |   |             | 33,336      |   |   |   | 31,086 |   |
| Total      Current Liabilities                                                                                                                                                                                  |   |             | 4,233,294   |   |   |   | 4,786,893 |   |
| Mortgage      Notes Payable                                                                                                                                                                                     |   |             | 18,807,123  |   |   |   | 17,939,187 |   |
| Notes      Payable to Related Parties                                                                                                                                                                           |   |             | 21,297      |   |   |   | 1,054,631 |   |
| Other      Notes Payable                                                                                                                                                                                        |   |             | 108,362     |   |   |   | 126,413 |   |
|                                                                                                                                                                                                            |   |             |        |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                                                                                                                                          |   |             | 23,170,076  |   |   |   | 23,907,124 |   |
|                                                                                                                                                                                                            |   |             |        |   |   |   |   |   |
| MINORITY      INTEREST IN PARTNERSHIP                                                                                                                                                                           |   |             | 761,219     |   |   |   | 930,192 |   |
|                                                                                                                                                                                                            |   |             |        |   |   |   |   |   |
| SHAREHOLDERS’      EQUITY                                                                                                                                                                                 |   |             |        |   |   |   |   |   |
| Shares      of Beneficial Interest, without par value; unlimited authorization;      9,163,378 and 9,195,856 shares issued and outstanding at      January 31, 2008 and  2007, respectively |   |             | 18,010,184  |   |   |   | 17,030,891 |   |
| Treasury      Stock, 7,623,370 and 7,536,970 shares held at January 31, 2008 and      2007, respectively                                                                                                   |   |             | (10,606,991 | ) |   |   | (10,489,190 | ) |
| TOTAL      SHAREHOLDERS’ EQUITY                                                                                                                                                                           |   |             | 7,403,193   |   |   |   | 6,541,701 |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                           |   | $                | 31,334,488  |   |   |  $ | 31,379,017 |   |

----

CONSOLIDATED STATEMENTS OFOPERATIONS

|                                                                                                                                  |   | YEARS      ENDED JANUARY 31, |            |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------------|
|                                                                                                                                  |   | 2008                              |            |   | 2007 |   |
| REVENUE                                                                                                                               |   |                              |            |   |   |   |
| Room                                                                                                                                  |   | $                                 | 16,870,899      |   |   |  $ | 16,057,900 |   |
| Food      and Beverage                                                                                                                |   |                              | 1,226,909       |   |   |   | 1,273,608 |   |
| Telecommunications                                                                                                                    |   |                              | 32,875          |   |   |   | 38,163 |   |
| Other                                                                                                                                 |   |                              | 418,567         |   |   |   | 396,535 |   |
| Management      and Trademark Fees, including $395,059 and $350,233 from related parties      for 2008 and 2007, respectively         |   |                              | 410,257         |   |   |   | 461,579 |   |
| Payroll      Reimbursements, including $3,140,628 and $3,057,136  from      related parties for 2008 and 2007, respectively |   |                              | 3,140,628       |   |   |   | 3,562,849 |   |
|                                                                                                                                  |   |                              |            |   |   |   |   |   |
| TOTAL      REVENUE                                                                                                                    |   |                              | 22,100,135      |   |   |   | 21,790,634 |   |
|                                                                                                                                  |   |                              |            |   |   |   |   |   |
| OPERATING      EXPENSES                                                                                                               |   |                              |            |   |   |   |   |   |
| Room                                                                                                                                  |   |                              | 4,420,226       |   |   |   | 4,110,342 |   |
| Food      and Beverage                                                                                                                |   |                              | 1,080,035       |   |   |   | 1,123,206 |   |
| Telecommunications                                                                                                                    |   |                              | 72,598          |   |   |   | 106,438 |   |
| General      and Administrative                                                                                                       |   |                              | 3,339,502       |   |   |   | 3,295,554 |   |
| Sales      and Marketing                                                                                                              |   |                              | 1,391,838       |   |   |   | 1,299,082 |   |
| Repairs      and Maintenance                                                                                                          |   |                              | 1,389,767       |   |   |   | 1,471,239 |   |
| Hospitality                                                                                                                           |   |                              | 788,877         |   |   |   | 771,701 |   |
| Utilities                                                                                                                             |   |                              | 1,269,694       |   |   |   | 1,224,063 |   |
| Hotel      Property Depreciation                                                                                                      |   |                              | 1,009,978       |   |   |   | 2,032,955 |   |
| Real      Estate and Personal Property Taxes, Insurance and Ground    Rent                                                            |   |                              | 1,159,916       |   |   |   | 1,139,869 |   |
| Other                                                                                                                                 |   |                              | 55,281          |   |   |   | 138,268 |   |
| Payroll      Costs Related to Management Contracts                                                                                    |   |                              | 3,140,628       |   |   |   | 3,562,849 |   |
|                                                                                                                                  |   |                              |            |   |   |   |   |   |
| TOTAL      OPERATING EXPENSES                                                                                                         |   |                              | 19,118,340      |   |   |   | 20,275,566 |   |
| OPERATING      INCOME                                                                                                                 |   |                              | 2,981,795       |   |   |   | 1,515,068 |   |
| Interest      Income                                                                                                                  |   |                              | 1,565           |   |   |   | 3,431 |   |
| Gain      on Disposition of Hotels                                                                                                    |   |                              | —         |   |   |   | 138,751 |   |
| TOTAL      OTHER INCOME                                                                                                               |   |                              | 1,565           |   |   |   | 142,182 |   |
| Interest      on Mortgage Notes Payable                                                                                               |   |                              | 1,616,462       |   |   |   | 1,704,169 |   |
| Interest      on Notes Payable to Banks                                                                                               |   |                              | 162,534         |   |   |   | 41,531 |   |
| Interest      on Notes Payable and Advances Payable to Related Parties                                                                |   |                              | 25,978          |   |   |   | 49,891 |   |
| Interest      on Other Notes Payable                                                                                                  |   |                              | 14,212          |   |   |   | 20,780 |   |
| TOTAL      INTEREST EXPENSE                                                                                                           |   |                              | 1,819,186       |   |   |   | 1,816,371 |   |
| INCOME      (LOSS) BEFORE MINORITY INTEREST AND INCOME TAXES                                                                          |   |                              | 1,164,174       |   |   |   | (159,121 | ) |
| PLUS      MINORITY INTEREST                                                                                                           |   |                              | 147,077         |   |   |   | 428,855 |   |
| Income      Tax Provision                                                                                                             |   |                              | (192,091        | ) |   |   | (316,164 | ) |
| INCOME      (LOSS) ATTRIBUTABLE TO SHARES OF BENEFICIAL INTEREST                                                                      |   | $                                 |  1,119,160 |   |   |  $ | (46,430 | ) |
| NET      INCOME (LOSS) PER SHARE – Basic                                                                                        |   | $                                 | 0.12            |   |   |  $ | (0.01 | ) |
| WEIGHTED      AVERAGE NUMBER OF SHARES OUTSTANDING – Basic                                                                      |   |                              | 9,185,474       |   |   |   | 9,251,420 |   |
| NET      INCOME (LOSS) PER SHARE – Diluted                                                                                      |   |  $                           | 0.07            |   |   |  $ | (0.01 | ) |
| WEIGHTED      AVERAGE NUMBER OF SHARES OUTSTANDING – Diluted                                                                    |   |                              | 13,111,541      |   |   |   | 9,251,420 |   |
| CASH      DIVIDENDS PER SHARE                                                                                                         |   | $                                 | 0.01            |   |   |  $ | 0.01 |   |

----

CONSOLIDATED STATEMENTS OFSHAREHOLDERS’ EQUITY

| BALANCE,      JANUARY 31, 2006                                   |   | $         | 6,717,928 |   |
|-----------------------------------------------------------------------|--------|-----------|-----------|--------|
| Net      Loss Attributable to Shares of Beneficial Interest           |   | (46,430   | )         |
| Dividends                                                             |   | (93,302   | )         |
| Purchase      of Treasury Stock                                       |   | (190,301  | )         |
| Shares      of Beneficial Interest issued for Services Received       |   | 134,055   |      |
| Partnership      Interest Acquired with Shares of Beneficial Interest |   | 24,560    |      |
| Reallocation      of Minority Interest                                |   | (4,809    | )         |
|                                                                  |   |      |      |
| BALANCE,      JANUARY 31, 2007                                   |   | $         | 6,541,701 |   |
| Net      Income Attributable to Shares of Beneficial Interest         |   | 1,119,160 |      |
| Dividends                                                             |   | (91,657   | )         |
| Purchase      of Treasury Stock                                       |   | (167,937  | )         |
| Shares      of Beneficial Interest issued for Services Received       |   | 46,080    |      |
| Purchase      of Partnership Units above Carrying Value               |   | (42,302   | )         |
| Reallocation      of Minority Interest                                |   | (1,852    | )         |
|                                                                  |   |      |      |   |
| BALANCE,      JANUARY 31, 2008                                   |   | $         | 7,403,193 |   |

----

CONSOLIDATED STATEMENTS OF CASHFLOW

|                                                                                                                                             |   | YEARS      ENDED JANUARY 31, |                |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------------------|
|                                                                                                                                             |   | 2008                              |                |   | 2007 |   |
| CASH      FLOW FROM OPERATING ACTIVITIES                                                                                                         |   |                              |                |   |   |   |
| Net      Income (Loss) Attributable to Shares of BeneficialInterest                                                                              |   | $                                 |  1,119,160     |   |   | $ | (46,430 | ) |
| Adjustments      to Reconcile Net Income (Loss) Attributable to Shares of Beneficial      Interest to Net Cash Provided by Operating Activities: |   |                              |                |   |   |   |   |   |
| Stock      Compensation Expense                                                                                                                  |   |                              | 46,080              |   |   |   | 96,390 |   |
| Provision      for (Recovery of) Uncollectible Receivables                                                                                       |   |                              | (13,045             | ) |   |   | 146,340 |   |
| Minority      Interest                                                                                                                           |   |                              | (147,077            | ) |   |   | (428,855 | ) |
| Hotel      Property Depreciation                                                                                                                 |   |                              | 1,009,978           |   |   |   | 2,032,955 |   |
| Deferred      Income Taxes                                                                                                                       |   |                              | —             |   |   |   | 259,000 |   |
| (Gain)      Loss on Disposal Sale of Hotel Property                                                                                              |   |                              | 5,529               |   |   |   | (135,791 | ) |
| Amortization      of Deferred Loan Fees                                                                                                          |   |                              | 51,692              |   |   |   | 35,400 |   |
| Changes      in Assets and Liabilities:                                                                                                          |   |                              |                |   |   |   |   |   |
| (Increase)      Decrease in Prepaid Expenses and Other Assets                                                                                    |   |                              | (9,074              | ) |   |   | 9,193 |   |
| Decrease      (Increase) in Accounts Receivable                                                                                                  |   |                              | 101,999             |   |   |   | (358,106 | ) |
| (Decrease)      Increase in Accounts Payable and Accrued Expenses                                                                                |   |                              | (561,721            | ) |   |   | 404,507 |   |
| NET      CASH PROVIDED BY OPERATING ACTIVITIES                                                                                                   |   |                              | 1,603,521           |   |   |   | 2,014,603 |   |
|                                                                                                                                             |   |                              |                |   |   |   |   |   |
| CASH      FLOW FROM INVESTING ACTIVITIES                                                                                                         |   |                              |                |   |   |   |   |   |
| Cash      Received from Disposition of Hotel Properties                                                                                          |   |                              | 3,500               |   |   |   | 160,000 |   |
| Improvements      and Additions to Hotel Properties                                                                                              |   |                              | (978,039            | ) |   |   | (1,496,715 | ) |
| Change      in Restricted Cash                                                                                                                   |   |                              | (14,211             | ) |   |   | 98,010 |   |
| NET      CASH USED IN INVESTING ACTIVITIES                                                                                                       |   |                              | (988,750            | ) |   |   | (1,238,705 |  ) |
|                                                                                                                                             |   |                              |                |   |   |   |   |   |
| CASH      FLOW FROM FINANCING ACTIVITIES                                                                                                         |   |                              |                |   |   |   |   |   |
| Principal      Payments on Mortgage Notes Payable                                                                                                |   |                              | (1,123,139          | ) |   |   | (1,043,226 | ) |
| Net      Proceeds from Refinancings of Mortgage Notes Payable                                                                                    |   |                              | 15,107              |   |   |   | — |   |
| Payments      on Notes Payable to Banks                                                                                                          |   |                              | (5,434,175          | ) |   |   | (2,755,839 | ) |
| Borrowings      on Notes Payable to Banks                                                                                                        |   |                              | 7,434,126           |   |   |   | 3,005,616 |   |
| Repurchase      of Partnership Units                                                                                                             |   |                              | (1,050              | ) |   |   | (246 | ) |
| Repurchase      of Treasury Stock                                                                                                                |   |                              | (167,937            | ) |   |   | (182,389 | ) |
| Payment      of Dividends                                                                                                                        |   |                              | (91,657             | ) |   |   | (93,302 | ) |
| Payments      on Notes and Advances Payable to Related Parties                                                                                   |   |                              | (1,830,084          | ) |   |   | (28,989 | ) |
| Borrowings      on Notes and Advances Payable to Related Parties                                                                                 |   |                              | 799,000             |   |   |   | 600,000 |   |
| Payments      on Other Notes Payable                                                                                                             |   |                              | (117,955            | ) |   |   | (109,083 | ) |
|                                                                                                                                             |   |                              |                |   |   |   |   |   |
| NET      CASH USED IN FINANCING ACTIVITIES                                                                                                       |   |                              | (517,764            | ) |   |   | (607,458 | ) |
|                                                                                                                                             |   |                              |                |   |   |   |   |   |
| NET      INCREASE IN CASH AND CASH EQUIVALENTS                                                                                                   |   |                              | 97,007              |   |   |   | 168,440 |   |
|                                                                                                                                             |   |                              |                |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                                                                              |   |                              | 202,691             |   |   |   | 34,251 |   |
|                                                                                                                                             |   |                              |                |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF YEAR                                                                                                    |   | $                                 |        299,698 |   |   | $ | 202,691 |   |

----

NOTES TO CONSOLIDATED FINANCIALSTATEMENTS

----

----

|  The amounts charged to      the allowance for doubtful accounts are as follows for the years ended      January 31: |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   | Balance      at the |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   | Beginning      of |   |   | Charged      to |   |   |   |   |   | Balance      at the |   |
| Year                                                                                                                      |   | Year |   |   | Expense |   |   | Deductions |   |   | End      of Year |   |
| 2007                                                                                                                      |   | $ | 112,423 |   |   |   | 146,340 |   |   |   | (143,793 | ) |   |  $ | 114,970 |   |
| 2008                                                                                                                      |   | $ | 114,970 |   |   |   | (13,045 | ) |   |   | (72,455 | ) |   |  $ | 29,470 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                |   | Restricted      Shares |    |
|-----------------------------------------------------|--------|------------------------|---------|
|                                                |   | Shares                 |    |   | Weighted-Average      Grant Date Fair Value |   |
| Balance      at January 31, 2006                    |   |                   | — |   |   |   | — |   |
| Granted                                             |   |                   | 99,300  |   |   | $ | 1.35 |   |
| Vested                                              |   |                   | (99,300 | ) |   | $ | 1.35 |   |
| Forfeited                                           |   |                   | — |   |   |   | — |   |
| Balance      of unvested awards at January 31, 2007 |   |                   | — |   |   | $ | — |   |
| Granted                                             |   |                   | 36,000  |   |   | $ | 1.28 |   |
| Vested                                              |   |                   | (36,000 | ) |   | $ | 1.28 |   |
| Forfeited                                           |   |                   | — |   |   |   | — |   |
| Balance      of unvested awards at January 31, 2008 |   |                   | — |   |   |   | — |   |

----

----

|                                                                                        |   | For      the Twelve Months Ended |             |
|---------------------------------------------------------------------------------------------|--------|----------------------------------|------------------|
|                                                                                        |   | January 31, 2008                 |             |   | January 31, 2007 |   |
| Income      (Loss) attributable to Shares of Beneficial Interest                            |   | $                                | 1,119,160        |   |   |  $ | (46,430 | ) |
| Plus:  Income      (Loss) attributable to minority interest unit holders          |   |                             | (147,077         | ) |   |   | — |   |
| Income      (Loss) attributable to Shares of Beneficial Interest after unit      conversion |   | $                                | 972,083          |   |   |  $ | (46,430 | ) |
|                                                                                        |   |                             |             |   |   |   |   |   |
| Weighted      average common shares outstanding                                             |   |                             | 9,185,474        |   |   |   | 9,251,420 |   |
| Plus:  Weighted      average incremental shares resulting from unitconversion     |   |                             |   3,926,067 |   |   |   |   — |   |
| Weighted      average common shares outstanding after unit conversion                       |   |                             | 13,111,541       |   |   |   | 9,251,420 |   |
|                                                                                        |   |                             |             |   |   |   |   |   |
| Diluted      Earnings (Loss) Per Share                                                      |   | $                                | 0.07             |   |   |  $ | (0.01 | ) |

----

----

|                                     |   | 2008   |     |    | 2007   |   |
|------------------------------------------|--------|--------|----------|---------|--------|--------|
| Land                                     |   | $      | 7,005    |    |   | $      | 7,005 |   |
| Building      and improvements           |   |   | 75,662   |    |   |   | 75,662 |   |
| Furniture,      fixtures and equipment   |   |   | 369,849  |    |   |   | 287,599 |   |
| Total      property, plant and equipment |   |   | 452,516  |    |   |   | 370,266 |   |
| Less      accumulated depreciation       |   |   | (240,558 | )  |   |   | (187,026 | ) |
| Property,      Plant and Equipment, net  |   | $      | 211,958  |    |   | $      | 183,240 |   |

|                                           |   | 2008   |        |    | 2007   |   |
|------------------------------------------------|--------|--------|-------------|---------|--------|--------|
| Land                                           |   | $      | 2,817,515   |    |   | $      | 2,817,515 |   |
| Building      and improvements                 |   |   | 34,143,848  |    |   |   | 34,025,922 |   |
| Furniture,      fixtures and equipment         |   |   | 7,121,243   |    |   |   | 7,126,234 |   |
| Total      hotel properties                    |   |   | 44,082,606  |    |   |   | 43,969,671 |   |
|   Less      accumulated depreciation |   |   | (14,680,590 | )  |   |   | (14,497,969 | ) |
| Hotel      properties, net                     |   | $      | 29,402,016  |    |   | $      | 29,471,702 |   |

----

|                                           |   |             |    |   |          |
|------------------------------------------------|--------|------------------|---------|--------|---------------|
|                                           |   | January      31, |    |
|                                           |   | 2008             |    | 2007   |          |
| Prepaid      Insurance                         |   | $                | 117,413 |   |        $ | 125,108 |   |
| Deferred      Financing Costs, Current Portion |   |             | 27,411  |   |          | 35,683 |   |
| Tax      and Insurance Escrow                  |   |             | 298,765 |   |          | 310,159 |   |
| Other      Prepaid Expenses and Current Assets |   |             | 42,849  |   |          | 14,686 |   |
| Total      Prepaid Expenses and Current Assets |   | $                | 486,438 |   |        $ | 485,636 |   |

|                                                |   | January      31, |
|-----------------------------------------------------|--------|------------------|
|                                                |   | 2008             |   | 2007 |
| Accounts      Payable                               |   | $                | 715,753 |   |        $ | 845,413 |
| Accrued      Salaries and Wages                     |   |             | 458,172 |   |   | 503,447 |
| Accrued      Vacation                               |   |             | 219,039 |   |   | 208,706 |
| Sales      Tax Payable                              |   |             | 188,214 |   |   | 240,468 |
| Accrued      Interest Payable                       |   |             | 79,734 |   |   | 95,550 |
| Advanced      Customer Deposits                     |   |             | 79,968 |   |   | 46,248 |
| Income      Tax Liability                           |   |             | 62,154 |   |   | 31,805 |
| Accrued      Property Taxes                         |   |             | 260,661 |   |   | 266,619 |
| Accrued      Land Lease                             |   |             | 113,933 |   |   | 106,393 |
| Accrued      Other                                  |   |             | 230,459 |   |   | 113,745 |
| Advances      From Related Parties, net             |   |             |             - |   |   | 511,686 |
| Total      Accounts Payable and Accrued Liabilities |   | $                | 2,408,087 |   |        $ | 2,970,080 |

----

|                                                                                                                                                                                                                                                                                                                  |   | 2008      |       | 2007      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|-----------|--------|
| Mortgage      note payable, due in variable monthly installments including interest at      prime rate plus 1.0% per year, secured by the Tucson St. Mary’s      property.  The note was satisfied in full on January 30, 2008      with a new mortgage note secured by the property.                 |   | $         | —    |      | $      | 4,092,537 |   |
|                                                                                                                                                                                                                                                                                                                  |   |      |       |      |   |
| Mortgage      note payable, due in monthly installments of $48,738, including interest      at 8% per year, through May 1, 2016, secured by the Tucson Oracle property      with a carrying value of $5.2 million at January 31,      2008.                                                                 |   | 3,548,967 |       | 3,837,263 |   |
|                                                                                                                                                                                                                                                                                                                  |   |      |       |      |   |
| Mortgage      note payable, due in monthly installments of $71,141, including interest      at 8.28% per year, through May 11, 2011, secured by the Ontario property      with a carrying value of $6.9 million at January 31,      2008.                                                                        |   | 8,134,458 |       | 8,297,893 |   |
|                                                                                                                                                                                                                                                                                                                  |   |      |       |      |   |
| Mortgage      note payable, due in monthly installments of $15,858, including interest      at 8.875% per year, through September 1, 2015, secured by the      Albuquerque property with a carrying value of $1.7 million at      January 31, 2008.                                                         |   | 1,055,619 |       | 1,147,738 |   |
|                                                                                                                                                                                                                                                                                                                  |   |      |       |      |   |
| Mortgage      note payable, due in monthly installments of $27,010, including interest      at 9.25% per year, through August 1, 2011, secured by the Yuma      property with a carrying value of $6.4 million at January 31,      2008.                                                                    |   | 985,368   |       | 1,490,220 |   |
|                                                                                                                                                                                                                                                                                                                  |   |      |       |      |   |
| Mortgage      note payable, due in variable monthly installments ($39,302 as of January      31, 2008) including interest at prime rate (6.0% as of January 31, 2008),      through January 28, 2015, secured by the Tucson St. Mary’s property with a      carrying value of $9.2 million at January 31, 2008. |   | 6,050,000 |       | —   |   |
|                                                                                                                                                                                                                                                                                                                  |   |      |       |      |   |
| Totals                                                                                                                                                                                                                                                                                                                |   | $         | 19,774,412 |      | $      | 18,865,651 |   |

----

|                                                                                                                                                                                                                                                                                                                                |   | 2008   |    | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |   |   |
| Line      of credit payable to Rare Earth Financial, L.L.C., an affiliate of Mr.      Wirth, unsecured and bearing interest at 7% per annum.  Due in      one installment of accrued interest and unpaid principal on March 1,      2008.                                                                                 |   | $      | — |   | $      | 1,000,000 |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |
| Note      payable to The Anderson Charitable Remainder Unitrust, an affiliate of      Mason Anderson, former Trustee of the Trust, bearing interest at 7% per      annum, and secured by Shares of Beneficial Interest in the Trust. Due in      monthly principal and interest payments of $1,365 through      November 2009. |   | 28,105 |    | 41,985 |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |
| Note      payable to Wayne Anderson, son of Mason Anderson, former Trustee of the      Trust, bearing interest at 7% per annum, and secured by Shares of      Beneficial Interest in the Trust. Due in monthly principal and interest      payments of $574 through June 2009.                                                 |   | 9,271  |    | 15,280 |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |
| Note      payable to Karen Anderson, daughter of Mason Anderson, former Trustee of      the Trust, bearing interest at 7% per annum, and secured by Shares of      Beneficial Interest in the Trust. Due in monthly principal and interest      payments of $574 through June 2009.                                            |   | 9,268  |    | 15,280 |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |
| Note      payable to Kathy Anderson, daughter of Mason Anderson, former Trustee of      the Trust, bearing interest at 7% per annum, and secured by Shares of      Beneficial Interest in the Trust. Due in monthly principal and interest      payments of $495 through June 2009.                                            |   | 7,989  |    | 13,172 |   |
|                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |
| Totals                                                                                                                                                                                                                                                                                                                              |   | $      | 54,633  |   | $      | 1,085,717 |   |

----

| FISCAL      YEAR ENDED |   | RELATED      PARTIES |   | MORTGAGES |   | OTHER      NOTES PAYABLE |   | TOTAL     |    |
|------------------------|--------|----------------------|--------|-----------|--------|--------------------------|--------|-----------|---------|
| 2009                   |   | $                    | 33,336 |      | $      | 967,289                  |   | $         | 824,582 |   | $ | 1,825,207 |   |
| 2010                   |   | 21,297               |   | 1,037,475 |   | 59,660                   |   | 1,118,432 |    |
| 2011                   |   | —              |   | 1,125,258 |   | 46,697                   |   | 1,171,955 |    |
| 2012                   |   | —              |   | 8,411,179 |   | 2,005                    |   | 8,413,184 |    |
| 2013                   |   | —              |   | 723,901   |   | —                  |   | 723,901   |    |
| Thereafter             |   | —              |   | 7,509,310 |   | —                  |   | 7,509,310 |    |
|                   |   |                 |   |      |   |                     |   |      |    |
|                   |   | $                    | 54,633 |      | $      | 19,744,412               |   | $         | 932,944 |   | $ | 20,761,989 |   |

----

| Year   |   | Federal   |
|--------|--------|-----------|
|   |   |      |
| 2012   |   | $         | 1,147,858 |
| 2019   |   | 1,163,799 |
| 2020   |   | 1,979,025 |
| 2021   |   | 250,847   |
| 2022   |   | 1,580,590 |
| 2023   |   | 1,671,294 |
| 2024   |   | 2,302,410 |
|   |   |      |
|   |   | $         | 10,095,823 |

|  Total      and net deferred income tax assets at January 31,                               |   |       |  2008 |   |   |             |   2007 |   |
|--------------------------------------------------------------------------------------------------|--------|------------|------------|--------|--------|------------------|------------------|--------|
| Net      operating loss carryforwards                                                            |   | $          | 3,433,000  |   |   | $                | 3,944,000        |   |
| Bad      debt allowance                                                                          |   | 9,000      |       |   |   | 31,000           |             |
| Alternative      minimum tax credit                                                              |   | 61,000     |       |   |   | 43,000           |             |
| Total      deferred income tax assets                                                            |   | 3,503,000  |       |   |   | 4,018,000        |             |
|                                                                                             |   |       |       |   |   |             |             |
| Deferred      income tax liability associated with book/tax differences in hotel      properties |   | (2,779,000 | )          |   |   |  (2,791,000 | )                |
| Net      deferred income tax asset                                                               |   | 724,000    |       |   |   |  1,227,000  |             |
| Valuation      allowance                                                                         |   | (724,000   | )          |   |   |  (1,227,000 | )                |
| Net      deferred income tax asset                                                               |   | $          | —    |   |   | $                | —          |   |

----

|  Income      taxes for the year ended January 31, |   | 2008    |          | 2007   |   |
|--------------------------------------------------------|--------|---------|---------------|--------|--------|
|        Current      income tax provision          |   |  $ | 192,000  |   |   | $ | 57,000  |   |
| Deferred      income tax benefit                       |   |    | —  |   |   |   | 259,000 |   |
| Net      income tax provision                          |   |  $ | 192,000       |   |   | $ | 316,000 |   |

|        Federal      statutory rates                                                                |   | $  |  453,000 |   |   |  34 |        % |
|---------------------------------------------------------------------------------------------------------|--------|---------|---------------|--------|--------|----------|---------------|
| State      income taxes                                                                                 |   |    | 61,000        |   |   | 5        | %             |
| Utilization      of federal net operating loss carryforward and related recognition of tax      benefit |   |    | (503,000      | )      |   | (38      | )%            |
| True-ups      to prior year return                                                                      |   |    | 155,000       |   |   | 11       | %             |
| Permanent      differences and other                                                                    |   |    | 26,000        |   |   | 2        | %             |
| Effective      rate                                                                                     |   | $       | 192,000       |   |   | 14       | %             |

|        Federal      statutory rates                                                                |   |  $  |    92,000 |   |   |  34 |        % |
|---------------------------------------------------------------------------------------------------------|--------|---------------|--------------------------|--------|--------|----------|---------------|
| State      income taxes                                                                                 |   |          | 12,000                   |   |   | 5        | %             |
| Utilization      of federal net operating loss carryforward and related recognition of tax      benefit |   |          | (1,264,000               | )      |   | (469     | )%            |
| True      up of prior year net operating loss carryforward                                              |   |          | 1,443,000                |   |   | 535      | %             |
| Other                                                                                                   |   |          | 33,000                   |   |   | 2        | %             |
| Effective      rate                                                                                     |   | $             | 316,000                  |   |   | 117      | %             |

----

----

|                                               |   | 2008           |       | 2007      |   |
|----------------------------------------------------|--------|----------------|------------|-----------|--------|
|                                               |   | CARRYINGAMOUNT |       | FAIRVALUE |   | CARRYINGAMOUNT |   | FAIRVALUE |   |
| Mortgage      notes payable                        |   | $              | 19,774,412 |      | $      | 20,898,875 |   | $ | 18,865,651 |   | $ | 19,405,055 |   |
|                                               |   |           |       |      |   |   |   |   |   |
| Notes      payable to banks                        |   | 750,000        |       | 750,000   |   | 749,777 |   | 749,777 |   |
|                                               |   |           |       |      |   |   |   |   |   |
| Notes      and advances payable to related parties |   | 54,633         |       | 57,809    |   | 1,085,717 |   | 1,079,818 |   |
|                                               |   |           |       |      |   |   |   |   |   |
| Other      notes payable                           |   | 182,944        |       | 193,198   |   | 235,899 |   | 234,995 |   |

|                                                                                        |   | 2008    |      | 2007   |
|---------------------------------------------------------------------------------------------|--------|---------|-----------|--------|
| Cash      paid for interest                                                                 |   | $       | 1,783,309 |   | $ | 1,787,785 |
|                                                                                        |   |    |      |   |
| Cash      paid for income taxes                                                             |   | 161,749 |      | 26,867 |
|                                                                                        |   |    |      |   |
| Promissory      notes issued by the Trust to acquire Class A limited partnership      units |   | 65,000  |      | 8,842  |
|                                                                                        |   |    |      |   |
| Promissory      notes issued by the Trust to acquire Shares of Beneficial      Interest     |   | — |      | 8,158  |
|                                                                                        |   |    |      |   |
| Shares      issued to Trustees and Officers in exchange for services                        |   | 46,080  |      | 37,665 |

----

| Fiscal      Year Ending |   |      |      |
|-------------------------|--------|-----------|-----------|
| 2009                    |   | $         | 202,360   |   |
| 2010                    |   | 202,360   |      |
| 2011                    |   | 202,360   |      |
| 2012                    |   | 202,360   |      |
| 2013                    |   | 202,360   |      |
| Thereafter              |   | 5,873,772 |      |
|                    |   |      |      |
| Total                   |   | $         | 6,885,572 |   |

----

----

SCHEDULE III

|                                         |   |         |       | InitialCostto      Tenant |   | CostCapitalizedSubsequent      to Acquisition |   | Gross      Amounts atWhich      Carried atClose      of Period |       |
|----------------------------------------------|--------|--------------|------------|---------------------------|--------|-----------------------------------------------|--------|----------------------------------------------------------------|------------|
| Properties                                   |   | Encumbrances |       | Land                      |   | Building      andImprovements                 |   | Land                                                           |       | Building      andImprovements |   | Land |   | Building      andImprovements |   |
|                                         |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| InnSuites      Hotel and Suites              |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Tucson,      Catalina Foothills Best Western |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Tucson,      Arizona                         |   | $            | 3,548,967  |                      | $      | —                                       |   | $                                                              | 4,220,820  |   | $ | — |   | $ | 2,356,566 |   | $ | — |   | $ | 6,577,386 |   |
| InnSuites      Hotels and Suites             |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Yuma                                         |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Yuma,      Arizona                           |   | 985,368      |       | 251,649                   |   | 4,983,292                                     |   | 53,366                                                         |       | 2,535,989 |   | 305,015 |   | 7,519,281 |   |
| Best      Western                            |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Airport      Ontario Hotel and Suites        |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Ontario,      California                     |   | 8,134,458    |       | 1,633,064                 |   | 5,450,872                                     |   | —                                                        |       | 1,790,261 |   | 1,633,064 |   | 7,241,133 |   |
| InnSuites      Hotels and Suites             |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Tucson      St. Mary’s                 |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Tucson,      Arizona                         |   | 6,050,000    |       | 900,000                   |   | 9,166,549                                     |   | (20,564                                                        | )          | 1,338,465 |   | 879,436 |   | 10,505,014 |   |
| InnSuites      Hotels and Suites             |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Albuquerque      Airport Best Western        |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Albuquerque,      New Mexico                 |   | 1,055,619    |       | —                   |   | 1,903,970                                     |   | —                                                        |       | 397,064 |   | — |   | 2,301,034 |   |
| InnSuites      Hospitality Trust             |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
| Phoenix,      Arizona                        |   | —      |       | 7,005                     |   | 75,662                                        |   | —                                                        |       | — |   | 7,005 |   | 75,662 |   |
|                                         |   |         |       |                      |   |                                          |   |                                                           |       |   |   |   |   |   |   |
|                                         |   | $            | 19,774,412 |                      | $      | 2,791,718                                     |   | $                                                              | 25,801,165 |   | $ | 32,802 |   | $ | 8,418,345 |   | $ | 2,824,520 |   | $ | 34,219,510 |   |

----

|                                         |   | Gross      Landand      Building |       | AccumulatedDepreciation |   | NetBook      ValueLand      andBuildingsand      Improvements |   | Date      ofConstruction |       | Date      ofAcquisition |   | Depreciationin      IncomeStatement      isComputed |   |
|----------------------------------------------|--------|----------------------------------|------------|-------------------------|--------|---------------------------------------------------------------|--------|--------------------------|------------|-------------------------|--------|-----------------------------------------------------|--------|
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| InnSuites      Hotel and Suites              |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Tucson,      Catalina Foothills Best Western |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Tucson,      Arizona                         |   | $                                | 6,577,386  |                    | $      | 1,692,907                                                     |   | $                        | 4,884,479  |                    | 1981   |                                                | 1998   |   | 5-40      years |   |
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| InnSuites      Hotels and Suites             |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Yuma                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Yuma,      Arizona                           |   | 7,824,296                        |       | 1,877,089               |   | 5,947,207                                                     |   | 1982                     |       | 1998                    |   | 5-40      years                                     |   |
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Best      Western                            |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Airport      Ontario Hotel and Suites        |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Ontario,      California                     |   | 8,874,197                        |       | 2,407,977               |   | 6,466,220                                                     |   | 1990                     |       | 1998                    |   | 5-40      years                                     |   |
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| InnSuites      Hotels and Suites             |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Tucson      St. Mary’s                 |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Tucson,      Arizona                         |   | 11,384,450                       |       | 2,677,294               |   | 8,707,156                                                     |   | 1960                     |       | 1998                    |   | 5-40      years                                     |   |
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| InnSuites      Hotels and Suites             |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Albuquerque      Airport Best Western        |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Albuquerque,      New Mexico                 |   | 2,301,034                        |       | 760,837                 |   | 1,540,197                                                     |   | 1975                     |       | 2000                    |   | 5-40      years                                     |   |
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| InnSuites      Hospitality Trust             |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
| Phoenix,      Arizona                        |   | 82,667                           |       | 8,598                   |   | 74,069                                                        |   | 2004                     |       | 2004                    |   | 33      years                                       |   |
|                                         |   |                             |       |                    |   |                                                          |   |                     |       |                    |   |                                                |   |
|                                         |   | $                                | 37,044,030 |                    | $      | 9,424,702                                                     |   | $                        | 27,619,328 |                    |   |                                                |   |   |   |   |

----

|                            |   | 2008   |       |   | 2007   |    |
|---------------------------------|--------|--------|------------|--------|--------|---------|
| Land                            |   | $      | 1,856,788  |   |   |  $ | 1,856,788 |   |
| Buildings      and improvements |   |   | 19,825,174 |   |   |    | 19,352,224 |   |
|                            |   | $      | 21,681,962 |   |   |  $ | 21,209,012 |   |

| Balance      at January 31, 2006  |   | $        | 36,344,665 |   |
|----------------------------------------|--------|----------|------------|--------|
| Improvement      to Hotel Properties   |   | 581,439  |       |
|                                   |   |     |       |
| Balance      at January 31, 2007  |   | $        | 36,926,104 |   |
| Improvement      to Hotel Properties   |   | 400,562  |       |
| Disposal      of Property Improvements |   | (282,636 | )     |
|                                   |   |     |       |
| Balance      at January 31, 2008  |   | $        | 37,044,030 |   |

----

SCHEDULE IV

| Description                                                        |   | Interest      Rate                   |   | Maturity      Date |   | Periodic      Payment Term                                                             |   | Face      Amount of Mortgages |       | 1/31/08      Carrying Amount |   |
|--------------------------------------------------------------------|--------|--------------------------------------|--------|--------------------|--------|----------------------------------------------------------------------------------------|--------|-------------------------------|------------|------------------------------|--------|
|                                                               |   |                                 |   |               |   |                                                                                   |   |                          |       |                         |   |
| Mortgage      Note Secured by Albuquerque, NM property             |   | 8.875                                | %      | 9/1/2015           |   | 180      monthly installments                                                          |   | $                             | 1,575,000  |                         | $      | 1,055,619 |   |
| Mortgage      Note Secured by Ontario, CA property                 |   | 8.280                                | %      | 5/11/2011          |   | 120      monthly installments, with balloon payment of $7,498,458 due at      maturity |   |                          | 9,000,000  |                         |   | 8,134,458 |   |
| Mortgage      Note Secured by Yuma, AZ property                    |   | 9.250                                | %      | 8/1/2011           |   | 180      monthly installments                                                          |   |                          | 4,000,000  |                         |   | 985,368 |   |
| Mortgage      Note Secured by Tucson St. Mary’s, AZ property |   | Prime      rate (6.0% as of 1/31/08) |   | 1/28/2015          |   | 83      monthly installments, with balloon payment of $5,079,399 due at      maturity  |   |                          | 6,050,000  |                         |   | 6,050,000 |   |
| Mortgage      Note Secured by Tucson Oracle, AZ property           |   | 8.000                                | %      | 5/1/2016           |   | 180      monthly installments                                                          |   |                          | 5,100,000  |                         |   | 3,548,967 |   |
|                                                               |   |                                 |   |               |   |                                                                                   |   |                          |       |                         |   |
|                                                               |   |                                 |   |               |   |                                                                                   |   | $                             | 25,725,000 |                         | $      | 19,774,412 |   |

| Balance      at January 31, 2006 |   | $          | 19,908,877 |   |
|---------------------------------------|--------|------------|------------|--------|
|                                  |   |       |       |
| Deductions      during period:        |   |       |       |
| Principal      payments               |   | (1,043,226 | )          |
|                                  |   |       |       |
| Balance      at January 31, 2007 |   | 18,865,651 |       |
|                                  |   |       |       |
| Deductions      during period:        |   |       |       |
| Net      refinancings                 |   | 2,031,900  |       |
| Principal      payments               |   | (1,123,139 | )          |
|                                  |   |       |       |
| Balance      at January 31, 2008 |   | $          | 19,774,412 |   |

----

----

----

| Plan      Category                                              |   | Number      of Securities tobe      Issued Upon Exerciseof      Outstanding Options,Warrants      and Rights |   | Weighted      – AverageExercise      Price ofOutstanding      Options,Warrants      and Rights |   | Number      of SecuritiesRemainingAvailable      for FutureIssuance      Under EquityCompensation      Plans(Excluding      SecuritiesReflected      in Column (a)) |      |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                            |   |                                                                                                         |   |                                                                                                 |   |                                                                                                                                                                     |      |
| Equity      compensation plans approved by security holders     |   | 0                                                                                                            |   | $                                                                                                    | N/A    |                                                                                                                                                                     | 1,000,000 |   |
|                                                            |   |                                                                                                         |   |                                                                                                 |   |                                                                                                                                                                     |      |
| Equity      compensation plans not approved by security holders |   | None                                                                                                         |   | None                                                                                                 |   | None                                                                                                                                                                     |      |

----

|   | Financial Statements/Schedules of InnSuites      Hospitality Trust |                                                                                                                          |
|--------|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                    |                                                                                                                          |
|   |                                                                    |                                                                                                                          |   |
|   | 1.                                                                      | Report      of Independent Registered Public Accounting Firm –  January 31,      2008 and 2007                | 21 |
|   | 2.                                                                      | Consolidated      Balance Sheets –  January 31, 2008 and 2007                                            | 22 |
|   | 3.                                                                      | Consolidated      Statements of Operations –  Years Ended January 31,      2008 and 2007            | 23 |
|   | 4.                                                                      | Consolidated      Statements of Shareholders’ Equity –  Years Ended      January 31, 2008 and 2007 | 24 |
|   | 5.                                                                      | Consolidated      Statements of Cash Flows –  Years Ended January 31,      2008 and 2007            | 25 |
|   | 6.                                                                      | Notes      to Consolidated Financial Statements –  Years Ended January 31,      2008 and 2007                 | 26 |
|   | 7.                                                                      | Schedule III      – Real Estate and Accumulated Depreciation                                                       | 44 |
|   | 8.                                                                      | Schedule IV      – Mortgage Loans on Real Estate                                                                   | 47 |

----

| (a)(3) |   | Exhibit List |
|--------|--------|-------------------|

| Exhibit No. |   | Exhibit                                                                                                                                                                                                                                                                                                                                                                                  |
|------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1              |   | Second      Amended and Restated Declaration of Trust of InnSuites Hospitality Trust      dated June 16, 1998, as further amended on July 12, 1999      (incorporated by reference to Exhibit 3.1 of the Registrant’s Annual      Report on Form 10-K for the fiscal year ended January 31, 2005 filed with      the Securities and Exchange Commission on May 16,2005). |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.1             |   | First      Amended and Restated Agreement of Limited Partnership of RRF Limited      Partnership dated January 31, 1998 (incorporated by reference to      Exhibit 10.1 of the Registrant’s Registration Statement on      Form S-2, filed with the Securities and Exchange Commission on      September 8, 1998).                                             |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.2*            |   | Form      of Indemnification Agreement between InnSuites Hospitality Trust and each      Trustee and executive officer (incorporated by reference to Exhibit 10.3      of the Registrant’s Annual Report on Form 10-K/A for the fiscal year ended      January 31, 2006 filed with the Securities and Exchange Commission on May      12, 2006).                                   |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.3             |   | Amended      and Restated Promissory Note dated December 1, 2006 by RRF Limited      Partnership in favor of Rare Earth Financial, L.L.C. (incorporated by      reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form      10-Q for the quarterly period ended October 31, 2006 filed with the      Securities and Exchange Commission on December 1,2006).       |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.4             |   | Sales      and Project Coordination Agreement dated March 1, 2006 between Rare Earth      Development Company and InnSuites Hospitality Trust (incorporated by      reference to Exhibit 10.7 of the Registrant’s Annual Report on Form 10-K/A      for the fiscal year ended January 31, 2006 filed with the Securities and      Exchange Commission on May 12, 2006).            |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.5             |   | InnSuites      Hospitality Trust 1997 Stock Incentive and Option Plan (incorporated by      reference to Exhibit 4(a) of the Registrant’s Registration Statement on      Form S-8, filed with the Securities and Exchange Commission on September      19, 2000).                                                                                                                  |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 21               |   | Subsidiaries      of the Registrant.                                                                                                                                                                                                                                                                                                                                                     |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.1             |   | Certification      of Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                       |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.2             |   | Certification      of Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                       |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.1             |   | Certification      of Chief Executive Officer required by Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                       |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.2             |   | Certification      of Chief Financial Officer required by Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                       |

----

----

|                                | INNSUITES      HOSPITALITY TRUST |
|-------------------------------------|----------------------------------|
|                                |                             |
|                                |                             |
| Dated:  May      15, 2008 | By:                              | /s/  James      F. Wirth |
|                                |                             | James      F. Wirth, Chairman,President      and Chief Executive Officer(Principal      Executive Officer) |
|                                |                             |   |
|                                |                             |   |
| Dated:  May      15, 2008 | By:                              | /s/  Anthony      B. Waters |
|                                |                             | Anthony      B. Waters, Chief Financial Officer(Principal      Financial Officer) |

| Dated:  May      15, 2008 | By:    | /s/  James      F. Wirth                                                                        |
|-------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|                                |   | James      F. Wirth, ChairmanPresident      and Chief Executive Officer(Principal      Executive Officer) |
|                                |   |                                                                                                      |
|                                |   |                                                                                                      |
| Dated:  May      15, 2008 | By:    | /s/  Anthony      B. Waters                                                                     |
|                                |   | Anthony      B. Waters, Chief Financial Officer(Principal      Financial Officer)                         |
|                                |   |                                                                                                      |
|                                |   |                                                                                                      |
| Dated:  May      15, 2008 | By:    | /s/  Marc      E. Berg                                                                          |
|                                |   | Marc      E. Berg, Trustee                                                                                |
|                                |   |                                                                                                      |
|                                |   |                                                                                                      |
| Dated:  May      15, 2008 | By:    | /s/  Steven      S. Robson                                                                      |
|                                |   | Steven      S. Robson, Trustee                                                                            |
|                                |   |                                                                                                      |
|                                |   |                                                                                                      |
| Dated:  May      15, 2008 | By:    | /s/  Peter      A. Thoma                                                                        |
|                                |   | Peter      A. Thoma, Trustee                                                                              |
|                                |   |                                                                                                      |
|                                |   |                                                                                                      |
| Dated:  May      15, 2008 | By:    | /s/  Larry      Pelegrin                                                                        |
|                                |   | Larry      Pelegrin, Trustee                                                                              |