InterGroup Corporation Reports $336,000 Net Income for Fiscal Year Ending June 30, 2026

InterGroup Corporation reported a net income of $336,000 for the fiscal year ending June 30, 2026, a significant recovery from a net loss of $7.547 million in the previous year. This turnaround was primarily driven by a $4.223 million increase in income from operations, totaling $11.866 million, and a $3.508 million gain from the sale of a multifamily property. The company also noted a decrease in mortgage interest expenses, which fell by $890,000 to $12.666 million. Total revenues increased to $73.951 million, up from $64.378 million in the prior year, reflecting improved performance across its hotel and real estate operations.

The company’s hotel operations, particularly the Hilton San Francisco Financial District, contributed significantly to this growth. Hotel revenues rose to $55.797 million, a 20% increase from $46.363 million in fiscal 2025. This growth was attributed to higher occupancy rates, which averaged 95% compared to 92% the previous year, and an increase in the average daily room rate from $218 to $253. The hotel’s available room inventory expanded from 544 to 558 rooms following the conversion of administrative spaces into guest accommodations, further enhancing revenue potential.

InterGroup also made strategic moves during the fiscal year, including the sale of a 12-unit multifamily property in Los Angeles County for $4.85 million, which resulted in a gain of $3.508 million. The company’s real estate operations generated revenues of $18.154 million, slightly up from $18.015 million in the previous year, driven by stronger occupancy and rental rates across its multifamily properties. As of June 30, 2026, the company managed a total of 19 operating properties, with a focus on Texas and Southern California.

Operationally, InterGroup maintained a workforce of 214 employees, with 187 dedicated to hotel operations. Approximately 90% of hotel employees were represented by labor unions under collective bargaining agreements, which are set to expire between 2028 and 2030. The company’s liquidity position remained stable, with cash and cash equivalents totaling $6.356 million and restricted cash of $10.943 million as of June 30, 2026. The company also held marketable securities valued at $4.394 million, a significant increase from $969,000 the previous year.

Looking ahead, InterGroup expressed optimism about its financial outlook, citing improved business travel and convention demand in San Francisco as key drivers for future growth. The company plans to continue leveraging its real estate portfolio and hotel operations while managing its debt obligations, which include a $67 million senior mortgage and a $36.3 million mezzanine loan, both maturing in April 2027. Management anticipates meeting its liquidity needs through existing cash flows and financing arrangements, with expectations to exercise extension options on its loans as conditions permit.