Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 17

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 17
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 on our ability to manage our business and operate successfully and competitively or could be negatively
perceived in the capital markets.

The
Hotel is managed by Aimbridge. Their ability to manage the Hotel and to operate successfully and competitively is dependent, in part,
upon the efforts and continued service of their managers. The departure of key personnel of current or future management companies could
have an adverse effect on our business and our ability to operate successfully and competitively, and it could be difficult to find replacements
for these key personnel, as competition for such personnel is intense. In addition, the termination or non-renewal of our management
agreement, changes in the terms of such agreement, or the failure of our management company to meet performance expectations could materially
impact our operations. Lack of a robust succession plan for management personnel could also heighten our operations risk in the event
of unexpected departures.

Seasonality
and other related factors such as weather can be expected to cause quarterly fluctuations in revenue at the Hotel.

The
hotel and resort industry is seasonal in nature. This seasonality can tend to cause quarterly fluctuations in revenues at the Hotel.
Our quarterly earnings may also be adversely affected by other related factors outside our control, including weather conditions and
poor economic conditions. Changes in climate patterns, including more frequent or severe weather events, could alter historical seasonal
demand trends or disrupt travel plans. As a result, we may have to enter into short-term borrowings in certain quarters in order to offset
these quarterly fluctuations in our revenues. If weather-related or climate-related events become more frequent or severe, the impact
on occupancy and average daily rates could be greater than historical experience suggests.

11

The
hotel industry is heavily regulated and failure to comply with extensive regulatory requirements may result in an adverse effect on our
business.

The
hotel industry is subject to extensive regulation and the Hotel must maintain its licenses and pay taxes and fees to continue operations.
Our property is subject to numerous laws, including those relating to the preparation and sale of food and beverages, including alcohol.
We are also subject to laws governing our relationship with our employees in such areas as minimum wage and maximum working hours, overtime,
working conditions, hiring and firing employees and work permits. Also, our ability to remodel, refurbish or add to our property may
be dependent upon our obtaining necessary building permits from local authorities. The failure to obtain any of these permits could adversely
affect our ability to increase revenues and net income through capital improvements of our property. In