Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 2

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 2
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 real estate property and three single-family houses. The
properties are located throughout the United States but are concentrated in Texas and the County of Los Angeles, California. The Company
also has an investment in unimproved real property. As of June 30, 2025, all the Company’s operating real estate properties are
managed in-house.

The
Company acquires its investments in real estate and other investments utilizing cash, securities, or debt, subject to approval and guidelines
of the Board of Directors and its Executive Strategic Real Estate and Securities Investment Committee. The Company may also look for
new real estate investment opportunities in hotels, apartments, office buildings and development properties. The acquisition of any new
real estate investments will depend on the Company’s ability to find suitable investment opportunities and the availability of
sufficient financing to acquire such investments. To help fund any such acquisition, the Company may borrow funds to leverage its investment
capital. The amount of any such debt will depend on several factors including, but not limited to, the availability of financing and
the sufficiency of the acquisition property’s projected cash flows to support the operations and debt service.

The
Company also may derive income from the investment of its cash and investment securities assets. The Company has invested in income-producing
instruments, equity and debt securities and will consider other investments if such investments offer growth or profit potential. See
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the Company’s
marketable securities and other investments.

HILTON
HOTELS FRANCHISE LICENSE AGREEMENT

The
Partnership entered into a Franchise License Agreement (the “License Agreement”) with HLT Franchise Holding LLC (“Hilton”)
on December 10, 2004. The term of the License Agreement was for an initial period of fifteen years commencing on the date the Hotel began
operating as a Hilton hotel, with an option to extend it for another five years, subject to certain conditions. On June 26, 2015, Operating
and Hilton entered into an amended franchise agreement that, among other things, extended the License Agreement through January 31, 2030,
and provided the Partnership with certain key money cash incentives to be earned through January 2030. The License Agreement requires
the hotel to maintain specific brand standards and periodic renovations, noncompliance with which could result in penalties, termination
of the agreement, or loss of the Hilton brand, as discussed in Item