Portsmouth Square Reports $9.11 Million Net Loss, Revenue Increases to $46.36 Million

Portsmouth Square, Inc. reported a net loss of $9.11 million for the fiscal year ending June 30, 2025, a decrease from the $11.38 million loss recorded in the previous year. The company's total revenue increased to $46.36 million, up from $41.89 million in 2024, primarily driven by a rise in hotel room revenue, which reached $39.65 million compared to $35.24 million the prior year. The increase in revenue was attributed to improved occupancy rates and average daily room rates, which rose to 92% and $218, respectively, compared to 82% and $217 in the previous fiscal year.

The company underwent significant operational changes, including the refinancing of its debt on March 28, 2025, which involved a $67 million mortgage loan and a $36.3 million mezzanine loan. This refinancing alleviated previous concerns regarding the company's ability to continue as a going concern, as it extended the maturity of its debt and improved its liquidity position. The refinancing also included a waiver of approximately $1.42 million in default interest and forbearance fees, contributing to the reduction in net loss.

Portsmouth's operational metrics showed positive trends, with total hotel revenues increasing by 10% year-over-year. The hotel achieved a revenue per available room (RevPAR) of $200, up from $177 in the previous year, reflecting a 23% increase since the completion of a full guest-room renovation in June 2024. The hotel’s management agreement with Aimbridge Hospitality continues to play a crucial role in its operations, with management fees totaling $783,000 for the year.

As of June 30, 2025, Portsmouth had a total of 191 employees, including 187 in hotel operations, with approximately 90% represented by labor unions. The company maintains a revolving credit facility with its majority shareholder, The InterGroup Corporation, which was increased to $40 million in March 2025, providing additional liquidity. The company’s cash and cash equivalents rose to $4.47 million, alongside restricted cash of $7.25 million, indicating a strengthened liquidity position.

Looking ahead, Portsmouth Square, Inc. remains focused on navigating the challenges of the San Francisco hospitality market, including competition and economic conditions. Management is optimistic about the recovery of business travel and the overall market, which could further enhance the hotel’s performance. However, the company acknowledges ongoing risks related to market dynamics and macroeconomic factors that could impact future operations and financial results.