INTERGROUP CORP

InterGroup Corporation

Company profile

• Legal structure: Delaware corporation; common stock listed on the Nasdaq Capital Market under the symbol INTG.
• Core business lines:
  • Ownership and operation of a hotel (through a consolidated subsidiary).
  • Ownership and management of multifamily and commercial real estate.
  • Investments in marketable and other securities.
• Hotel ownership: InterGroup owns approximately 75.9% of Portsmouth Square, Inc. (“Portsmouth”), which, through its subsidiaries, owns and operates the Hilton San Francisco Financial District.
• Recent corporate details:
  • The Hotel’s available room inventory increased from 544 to 558 rooms on September 30, 2025, through conversion of 14 former administrative offices to guestrooms.
  • All operating real estate properties are managed in-house as of June 30, 2026.
• Markets and geography: Real estate properties are located primarily in Texas and Los Angeles County, California, with one undeveloped parcel in Maui, Hawaii.

Hotel operations — Hilton San Francisco Financial District

• Location: 750 Kearny Street, San Francisco, CA (Financial District).
• Property characteristics: 31-story building (including parking garage) with 558 guest rooms and suites; 22 floors are used for guest rooms.
• Facilities: on-property restaurant, lounge, private dining room (approximately 3,700 square feet total), two kitchens, fitness center, and a rooftop pool (not currently in operation).
• Franchise and branding:
  • Franchise agreement with Hilton (HLT Franchise Holding, LLC) through January 31, 2030.
  • The Hotel operates under Hilton brand standards and capital improvement requirements; noncompliance could result in penalties or franchise termination.
• Management:
  • Managed by Aimbridge Hospitality under a hotel management agreement (HMA) effective February 3, 2017.
  • HMA term: initial ten-year term ending February 2027, with up to five successive one-year renewal periods.
  • Fees: base management fee of 1.70% of total Hotel revenue; an incentive fee may apply based on operating performance.
• Related agreements and leases:
  • Long-term lease of the third-floor Chinese Culture Center (CCC) with the Chinese Culture Foundation of San Francisco; lease extended automatically for 10 years in October 2023.
  • The Foundation has reserve rights for up to 75 event days per year; discounts and fees apply for reserved dates.
• Operational note:
  • The pedestrian bridge connecting the Hotel to Portsmouth Square Park was removed on August 9, 2026. Hotel operations were disrupted July 31, 2026–August 9, 2026 and resumed on August 10, 2026.
• Revenue sources: Hotel guestrooms, food and beverage, parking, and other ancillary services.

Real estate portfolio (non-Hotel properties)

• Portfolio composition (as of June 30, 2026):
  • 19 operating properties: 15 apartment complexes, 3 single-family houses held as strategic investments, and 1 commercial property.
  • One undeveloped parcel: approximately 2 acres in Kihei, Maui, Hawaii.
  • All operating real estate properties are managed in-house.
• Property highlights:
  • Las Colinas, Texas: 358 units; ~15.6 acres.
  • Morris County, New Jersey: 151 units; ~8.0 acres.
  • St. Louis, Missouri: 264 units; ~17.5 acres.
  • Florence, Kentucky: 157 units; ~6.0 acres.
  • Los Angeles County, California: a cluster of small to mid-size apartment complexes, a separate 5,503 sq ft commercial property (built 1999), and several single-family houses (acquired 2000–2015).
  • Kihei, Maui, Hawaii: approximately 2 acres of undeveloped land.
• Occupancy and regulation:
  • The report provides economic and physical occupancy percentages for each property for fiscal year 2026; several Los Angeles properties have small unit counts, which can cause occupancy to fluctuate.
  • Los Angeles County properties are subject to rent stabilization and tenant-protection regulations that may limit rent increases and affect operations.

Marketable securities and investments

• Governance: Investments are supervised by an Executive Strategic Real Estate and Securities Investment Committee, which delegates portfolio management to the Company’s Chairman/CEO within established guidelines.
• Portfolio characteristics (as of June 30, 2026):
  • Two equity securities collectively represented about 43% of the fair value of the marketable equity securities portfolio.
  • The portfolio includes nonmarketable investments that may be difficult to value or sell.
• Operational support: Investment activities are supported by a third-party provider and third-party platforms (e.g., Yardi) for accounting and administration.

Transactions and financial items

• Sale of real estate:
  • December 2025: sale of a 12-unit multifamily property in Los Angeles County for $4.85 million.
  • Gain on sale: $3,508,000, recorded in the consolidated statements of operations.
• Debt and guarantees:
  • Hotel financing secured by a $67.0 million senior mortgage loan.
  • Non-hotel properties are encumbered by mortgage debt, including mezzanine loans.
  • Debt instruments include limited guarantees and “springing recourse” provisions; guaranties may become full-recourse upon specified events (for example, post-removal repair obligations related to the pedestrian bridge or casualty shortfalls).
  • InterGroup and Portsmouth provide limited guarantees of certain recourse obligations under the debt facilities.
• Liquidity and capital considerations:
  • The Hotel financing and other secured indebtedness create debt service obligations and covenants; failure to meet covenants or refinance could affect liquidity and financial condition.

Employees and labor

• Total employees: 214 (as of June 30, 2026).
• By category:
  • 175 full-time employees.
  • 27 in corporate and multifamily operations.
  • 187 in Hotel operations.
• Labor relations:
  • Approximately 90% of Hotel employees are represented by three labor unions under collective bargaining agreements (CBAs).
  • CBA expiration dates:
    • Local 2 (Hotel and Restaurant Employees): expires August 13, 2028.
    • Local 856 (International Brotherhood of Teamsters): expires December 31, 2028.
    • Local 39 (Stationary Engineers): expires July 2030.
  • Aimbridge administers the CBAs and funds related payroll and benefits for Hotel employees.

Summary

InterGroup Corporation operates as a real estate and hotel-focused company with a substantial ownership stake in the Hilton San Francisco Financial District via Portsmouth Square, Inc. The company combines hotel operations under Hilton franchise standards and Aimbridge management with a diversified real estate portfolio across several states and an undeveloped parcel in Hawaii. InterGroup maintains a governance framework for its marketable securities and investments, recorded a notable real estate sale gain in 2025, and carries substantial secured debt tied to Hotel and non-Hotel properties.