• Think of it as Host Hotels & Resorts (HST) meets Equity Residential (EQR), plus an investment fund.
• A tiny Brookfield Asset Management (BAM) that directly owns a Hilton hotel and various other real estate, alongside a financial investment portfolio.

• Hospitality Services: Providing lodging, meeting spaces, parking, and cultural facilities through its Hilton San Francisco Financial District hotel.
• Real Estate Rental & Management: Managing and leasing its portfolio of owned apartment complexes, single-family houses, and commercial real estate properties.
• Real Estate Investment & Development: Investing in various real estate assets, including unimproved land, and potentially developing them.
• Financial Investment Management: Investing in a diverse range of financial instruments, including debt and equity securities, investment funds, and mortgage-backed securities.

Hilton Worldwide Holdings Inc. (HLT)

John V. Winfield, Chairman, President and Chief Executive Officer

Mr. Winfield was appointed Chief Executive Officer of The InterGroup Corporation in January 1987 and has served on the Board since 1982. He also serves as Chairman and CEO of the majority-owned subsidiary Portsmouth Square, Inc. He is recognized for his long tenure in overseeing real estate, hotel, and securities investment strategy, directing capital allocation, and managing securities portfolios. Mr. Winfield directly owns 67.8% of the company's shares.

Ann Marie Blair, Treasurer, Controller & Principal Financial Officer

Ms. Blair plays a pivotal role in managing The InterGroup Corporation's financial health and strategic fiscal direction. Her background includes extensive experience in financial management, coupled with a keen understanding of corporate finance, which is instrumental in safeguarding the company's assets and optimizing its financial performance.

David C. Gonzalez, Chief Operating Officer

Mr. Gonzalez is a key figure in shaping and executing The InterGroup Corporation's operational strategy. He brings considerable experience in managing complex global operations, ensuring that the company's business objectives are met with efficiency and effectiveness.

Jolie G. Kahn CPA, Esq., Secretary

Ms. Kahn serves as the Secretary of The InterGroup Corporation.

Key Risks to InterGroup Corporation (INTG)

1. Highly Leveraged Capital Structure and Interest Rate Sensitivity: InterGroup Corporation operates with a highly leveraged balance sheet, marked by significant total liabilities and negative shareholder equity. As of December 31, 2025, total liabilities were approximately $215.7 million, with a total shareholders' deficit of about $114.5 million. This extreme reliance on debt for financing, even to cover operating shortfalls, makes the company vulnerable to shifts in credit conditions and limits its financial flexibility. The company holds substantial mortgage obligations, including variable-rate exposure, which means rising interest rates can significantly increase interest expenses, putting pressure on cash flows and constraining capital allocation. The cost of debt is a constant threat in the real estate and hospitality sectors where InterGroup operates.
2. San Francisco Hotel Market Volatility and Rising Operating Costs: The company's core hotel asset, the Hilton San Francisco Financial District, is exposed to the slow recovery and volatility of the San Francisco hospitality market. The hotel's long-term value and profitability are heavily dependent on business travel trends and convention calendars, which have faced challenges. Compounding this, hotel operating expenses have been increasing faster than revenue, with a 19.2% rise in hotel operating costs in Q1 FY2026. This combination of a slowly recovering market and escalating operational costs results in ongoing hotel-level losses, which are a significant drag on the company's overall financial performance.
3. Underperformance and Volatility of Investment Transactions Segment: InterGroup's investment transactions segment has consistently proven to be a financial headwind, recording net losses. In fiscal year 2025, this segment reported a net loss of $2.502 million, which was an increase from the prior year. This persistent underperformance in marketable securities highlights the company's vulnerability to securities market volatility and indicates that its current investment strategy is actively depressing consolidated net income despite improvements in core business segments.

The widespread and sustained adoption of remote and hybrid work models poses a clear emerging threat to Intergroup's hotel operations, particularly its Hilton San Francisco Financial District property. This trend could lead to a structural decline in demand for business travel, corporate events, and conferences, which are traditionally critical revenue drivers for hotels located in financial districts. This shift represents a fundamental change in the demand landscape, akin to how streaming impacted physical media rentals or ride-sharing transformed traditional taxi services.

Intergroup (symbol: INTG) operates primarily in hotel and real estate sectors. Here are the addressable market sizes for its main products and services:

Hotel Operations

• The overall U.S. hospitality market is estimated at approximately $247.81 billion in 2026 and is projected to reach $305.53 billion by 2031, expanding at a 4.28% compound annual growth rate (CAGR).
• California's hotel industry market size reached $37 billion in 2025.
• For San Francisco, total visitor spending is forecasted to be $9.83 billion in 2026, which includes spending on lodging and other tourism-related activities.

Real Estate Operations

• The United States commercial real estate market size is estimated at $1.74 trillion in 2026 and is projected to grow to $1.97 trillion by 2031, with a 2.45% CAGR. California notably led with 18.60% of the revenue in the U.S. commercial real estate market in 2025.
• For residential real estate in California, the median home price is forecast to rise to $909,400 in 2025.
• In Hawaii, the median price per acre for land is approximately $48,500.

The InterGroup Corporation (INTG) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Recovery and Increased Demand in the San Francisco Hotel Market: The company's primary asset, the Hilton San Francisco Financial District, has shown signs of significant operational rebound. Recent reports indicate increased hotel revenues, higher room demand, and improved occupancy rates, coupled with an increase in Average Daily Rate (ADR). The CEO has also noted a cautiously optimistic outlook regarding the stabilization and recovery of operating conditions in San Francisco.
2. Expanded Room Inventory in Hotel Operations: The return of 14 guest rooms to available inventory following renovations completed in September 2025 directly increases the hotel's capacity to generate revenue. This expansion allows for higher potential occupancy and overall room revenue.
3. Steady Growth in Real Estate Operations: InterGroup's real estate segment has demonstrated stable and growing revenues, with a 4% rise in real estate revenues. This indicates continued market demand and effective management of its portfolio of apartment complexes, single-family houses, and commercial properties.
4. Strategic Asset Management and Reinvestment: While not a direct recurring revenue stream, the strategic sale of non-core real estate assets, such as a multifamily property in Los Angeles in December 2025, provides significant cash proceeds and GAAP gains. This enhanced liquidity can be reinvested into higher-performing, income-producing assets or used to strengthen the company's financial position, indirectly supporting future revenue-generating initiatives.
5. Enhanced Pricing Power in Hotel Operations: The Hilton San Francisco Financial District has experienced an increase in its Average Daily Rate (ADR). This improved pricing power allows the hotel to generate more revenue per occupied room, contributing to overall top-line growth as demand and market conditions in San Francisco continue to improve.

Share Repurchases

• On December 20, 2021, The InterGroup Corporation's Board of Directors authorized the purchase of an additional 125,000 shares of common stock, increasing the total authorized for repurchase to approximately 130,000 shares.

Capital Expenditures

• In fiscal year 2025, real estate capital expenditures were approximately $1.74 million, a decrease from $2.31 million in fiscal year 2024.
• Hotel capital expenditures for fiscal year 2025 were about $2.25 million, a reduction from approximately $4.08 million in fiscal year 2024.
• The comprehensive renovation of the Hilton San Francisco Financial District hotel was completed in June 2024, enabling full room availability and contributing to improved operating metrics in fiscal year 2025.