The InterGroup Corporation reported a significant turnaround in its financial performance for the three and six months ended December 31, 2025, compared to the same periods in 2024. The company achieved a net income of $962,000 for the quarter, a stark contrast to the net loss of $3,697,000 recorded in the previous year. For the six-month period, the net loss narrowed to $197,000 from $4,549,000. The improvement was primarily driven by a $3,508,000 gain on the sale of a multifamily property and increased revenues from hotel operations, which rose to $12,661,000 from $9,965,000 in the prior year.
Total revenues for the six months increased to $35,214,000, up from $31,347,000, with hotel revenues contributing $25,079,000, a 15.5% increase from $21,785,000. The real estate segment also saw growth, with revenues rising to $10,135,000 from $9,562,000. Operating expenses increased as well, reflecting higher costs associated with hotel operations and real estate management, but the overall income from operations improved to $4,747,000 from $3,982,000.
In terms of strategic developments, InterGroup completed the sale of a non-core 12-unit multifamily property in Los Angeles, which had been classified as held for sale. The sale generated net cash proceeds of approximately $2.6 million, which were utilized for general corporate purposes. The company also continued to invest in property enhancements, including renovations at the Hilton San Francisco Financial District, which contributed to improved hotel performance metrics such as average daily rate and occupancy.
Operationally, the company reported a decrease in net loss from hotel operations, which fell to $1,091,000 for the quarter, down from $2,838,000 in the previous year. The hotel’s average daily rate increased to $234 from $190, and occupancy improved to 92% from 88%. The company’s total assets as of December 31, 2025, were $101,137,000, a decrease from $104,101,000 at the end of the previous fiscal period, primarily due to changes in cash and cash equivalents and restricted cash.
Looking ahead, InterGroup's management remains cautious about the recovery of the San Francisco hospitality market, which has been slower than anticipated due to ongoing challenges such as reduced business travel and municipal issues. The company plans to continue monitoring market conditions and adjust its operations and capital allocation strategies accordingly. Despite these challenges, management forecasts adequate liquidity for the next twelve months, supported by cash flows from real estate operations and ongoing capital preservation initiatives.
About INTERGROUP CORP
The InterGroup Corporation is a diversified investment company engaged in owning, managing, and developing real estate assets, including hotels, apartments, and commercial properties across the U.S. It generates income through property operations, management fees, and securities investments. The company emphasizes social responsibility, strategic acquisitions, and leveraging debt to enhance shareholder value within a competitive, capital-intensive industry.
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