Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 51

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 which is reduced by approximately $317,000
annually through 2030 by Hilton if the Company remains a Hilton franchisee.

On
February 1, 2017, Operating entered into a Hotel Management Agreement (“HMA”) with Aimbridge Hospitality (“Aimbridge”)
to manage the Hotel, with an effective takeover date of February 3, 2017. The term of the HMA is for an initial period of 10 years and
automatically renews for up to five additional years in aggregate, subject to certain conditions. The HMA also provides for Aimbridge
to advance a “key money” incentive fee to the Hotel for capital improvements in the amount of $2,000,000 under certain terms
and conditions described in a separate key money agreement. The key money contribution is amortized in equal monthly amounts over an
eight (8) year period commencing on the second anniversary of the takeover date. The unamortized portion of the key money was $334,000
and $396,000 at September 30, 2025 and June 30, 2025, respectively, is included in other notes payable in the condensed consolidated
balance sheets.

    -17-

Future
minimum principal amortizations for all other financing transactions are as follows:

 SCHEDULE OF FUTURE MINIMUM PRINCIPAL PAYMENTS

    For the year ending June 30, 

    2026 (9 months) 
    $425,000 
  
    2027 
     463,000 
  
    2028 
     317,000 
  
    2029 
     317,000 
  
    2030 
     316,000 
  
    Thereafter 
     - 
  
    Long
    term debt 
    $1,838,000 

Four
of the Portsmouth directors serve as directors of InterGroup. The Company’s Vice President Real Estate was elected President of
Portsmouth in May 2021. The Company’s director and Chairman of the Audit Committee, William J. Nance.

As
Chairman of the Executive Strategic Real Estate and Securities Investment Committee, the Company’s President and Chief Executive
Officer (CEO), John V. Winfield, directs the investment activity of the Company in public and private markets pursuant to authority granted
by the Board of Directors. Mr. Winfield also serves as Chief Executive Officer and Chairman of the Board of Portsmouth and oversees the
investment activity of Portsmouth.