Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 12

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 12
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-owned subsidiary, Portsmouth Square, Inc. (“Portsmouth”), we own a single hotel property in San Francisco, California
(the Hilton San Francisco Financial District). While InterGroup is not a single-asset company—we also own and operate a diversified
portfolio of multifamily and commercial real estate and hold investment securities—the Hotel represents a significant component
of our consolidated revenues and cash flows. As a result, adverse conditions in the San Francisco Bay Area—including local economic
trends, business-travel and convention activity, competitive dynamics, public safety or municipal issues, natural disasters (including
earthquakes), climate-related impacts, and public health events—could materially reduce Hotel operating results and, in turn, negatively
impact our consolidated results of operations, liquidity, and cash flows.

Prolonged
weakness in the San Francisco market could also limit cash available at Portsmouth for debt service, required reserves, or capital expenditures,
which may restrict upstream distributions to InterGroup and constrain our corporate capital allocation. Although our other real estate
investments and securities provide diversification, they do not eliminate the concentration risk inherent in our Hotel segment’s
reliance on a single urban market. See also “Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations” and Note 10 – Mortgage Notes Payable.

We
face intense local and increasingly national competition which could impact our operations and adversely affect our business and the
results of operations.

We
operate in the highly competitive San Francisco hotel industry. The Hotel competes with other high-quality Northern California hotels
and resorts. Many of these competitors seek to attract customers to their properties by providing food and beverage outlets, retail stores
and other related amenities, in addition to recently renovated hotel accommodations. To the extent that we seek to enhance our revenue
base by offering our own various amenities, we compete with the service offerings provided by these competitors.

Many
of the competing properties have themes and attractions which draw a significant number of visitors and directly compete with our operations.
Some of these properties are operated by subsidiaries or divisions of large public companies that may have greater name recognition and
financial and marketing resources than we do and market to the same target demographic group as we do. Various competitors are expanding
and renovating their existing facilities. We believe that competition in the San Francisco hotel and resort industry is based on certain
property-specific factors, including overall atmosphere, range of amenities, price, location, technology infrastructure, entertainment
attractions, theme and size. Any market perception that we