Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 23

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 23
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 walking distance and North Beach is two blocks
away. Chinatown is directly across the bridge that runs from the Hotel to Portsmouth Square Park. The Hotel is a 31-story (including
parking garage), steel and concrete, A-frame building, built in 1970. The Hotel has 544 well-appointed guest rooms and suites situated
on 22 floors. The Hotel has a restaurant, a lounge, and a private dining room totaling approximately 3,700 square feet; additionally,
there are two kitchens that service both restaurant and banquet operations, and a fully equipped gym. The third floor houses the Chinese
Culture Center (the “CCC”), its administrative office, and a grand ballroom. The Hotel has approximately 22,000 square feet
of meeting room space, including the grand ballroom. Other features of the Hotel include a 5-level underground parking garage and a pedestrian
bridge across Kearny Street connecting the Hotel and the CCC with Portsmouth Square Park in Chinatown.

As
required by its senior lender, Operating will continue to make minimum payments into its furniture, fixtures, and equipment (“FF&E”)
escrow account held by its senior lender in an amount equal to the greater of four percent (4%) of annual revenues or a minimum of $1,952,000
per annum, as adjusted under the loan agreement. In the opinion of management, the Hotel is adequately covered by insurance, subject
to customary deductibles, exclusions, and coverage limits.

We
believe the Hotel is suitable and adequate for its current use and is substantially utilized.

14

HOTEL
FINANCING

A.
Mortgage and Mezzanine Loan History

In
December 2013, Justice Investors Limited Partnership (“Justice”), then a consolidated subsidiary of Portsmouth Square, Inc.
(“Portsmouth”), obtained a $97,000,000 mortgage loan and a $20,000,000 mezzanine loan to fund the redemption of limited partnership
interests and repay a prior $42,940,000 mortgage loan. The mortgage loan was secured by the Company’s principal asset, the Hilton
San Francisco Financial District (the “Hotel”), and bore interest at a fixed rate of 5.275% per annum. The loan required
interest-only payments through January 2017 and began amortizing thereafter on a 30-year schedule, maturing on January 1, 2024. The mortgage
loan was guaranteed in part by Portsmouth.

The
mezzanine loan, originally bearing interest at