Notes Payable

9 Months Ended

Oct. 31, 2018

Debt Disclosure [Abstract]

Notes Payable

5. NOTES PAYABLE

On August 24, 2012, the Yuma entity entered into a $5,500,000 mortgage loan with 1^st Bank Yuma to refinance the then existing term debt. The mortgage loan calls for a 10 year maturity date and an interest rate of the Wall Street Journal Prime Rate plus one percentage point, with a floor of 5.0% per year. Prepayment fees exist for refinancing this debt with another lender until the maturity date. As of October 31, 2018, the mortgage loan was paid in full in connection with the Sale of the Yuma Hotel property (see Note 10). The mortgage note payable was reclassified at January 31, 2108 and recorded under liabilities of discontinued operations in the accompanying condensed consolidated balance sheet (see Note 10).

On May 11, 2017, Yuma Hospitality Properties, LLLP entered into a $850,000 Promissory Note Agreement (“Yuma Loan Agreement”) as a credit facility to replenish funds for the hotel remodel with 1^st Bank of Yuma Arizona Bank & Trust with a maturity date of September 1, 2022. The Yuma Loan Agreement has an initial interest rate of 5.50% with a variable rate adjustment equal to the Wall Street Journal Prime Rate plus 1.50% with a floor of 5.50% and no prepayment penalty. This credit facility is guaranteed by InnSuites Hospitality Trust. As of October 31, 2018, the Promissory Note was paid in full in connection with the sale of the Yuma Hotel property (see Note 10). The Promissory Note was reclassified at January 31, 2018 and recorded under liabilities of discontinued operations in the accompanying condensed consolidated balance sheet (see Note 10).

On January 8, 2016, in connection with the acquisition of substantially all of the assets of International Vacation Hotels, the Trust entered into a $400,000 business loan with Laurence Holdings Limited, an Ontario, Canada corporation, with a maturity date of February 1, 2019 pursuant to the terms of the Security Agreement and Promissory Note (the “Laurence Holdings Agreement”). The Laurence Holdings Agreement required the funds be used for the purchase of International Vacation Hotels assets. The Laurence Holdings Agreement provides for interest- only payments for the first three months of the term and principal and interest payments for the remaining portion of the loan. The Laurence Holdings Agreement sets an interest rate of 8% per annum with no prepayment penalty. As of October 24, 2018, the business loan was paid in full. The loan was reclassified at January 31, 2018 and recorded under liabilities of discontinued operations in the accompanying condensed consolidated balance sheet (see Note 10).

On June 29, 2017, Tucson Hospitality Properties, LLLP, a subsidiary of InnSuites Hospitality Trust, entered into a $5.0 million Business Loan Agreement (“Tucson Loan”) as a first mortgage credit facility with KS State Bank to refinance the existing first mortgage credit facility with an approximate payoff balance of $3.045 million which will allow Tucson Hospitality Properties, LLLP to be reimbursed for prior and future hotel improvements. The Tucson Loan has a maturity date of June 19, 2042. The Tucson Loan has an initial interest rate of 4.69% for the first five years and thereafter a variable rate equal to the US Treasury + 2.0% with a floor of 4.69% and no prepayment penalty. This credit facility is guaranteed by InnSuites Hospitality Trust, RRF Limited Partnership, Rare Earth Financial, LLC, James F. Wirth and Gail J. Wirth and the Wirth Family Trust dated July 14, 2016. As of October 31, 2018, the Tucson Loan was approximately $4,852,000.

Scheduled minimum payments of debt, net of debt discounts, as of October 31, 2018 are as follows in the respective fiscal years indicated:

FISCAL YEAR	MORTGAGES		NOTES PAYABLE RELATED PARTIES		OTHER NOTES PAYABLE		TOTAL
Remainder of 2019 (3 mos)	$	27,000	$	148,000	$	1,055,000	$	1,230,000
2020		115,000		318,000		238,000		671,000
2021		119,000		95,000		212,000		426,000
2022		127,000				46,000		173,000
2023		130,000						130,000
Thereafter		4,334,000						4,334,000
	$	4,852,000	$	561,000	$	1,551,000	$	6,964,000