Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 13

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 13
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 do not excel with respect to such property-specific factors could adversely
affect our ability to compete effectively. If we fail to respond effectively to changes in market conditions, customer preferences, or
competitor strategies – including pricing actions, loyalty programs, and digital marketing initiatives, we could lose market share,
which could adversely affect our business, revenues, and results of operations.

9

The
San Francisco hotel and resort industry is capital intensive; financing our renovations and future capital improvements could reduce
our cash flow and adversely affect our financial performance.

The
Hotel has an ongoing need for renovations and other capital improvements to remain competitive, including replacement, from time to time,
of furniture, fixtures and equipment. We will also need to make capital expenditures to comply with applicable laws and regulations.

Renovations
and other capital improvements of hotels require significant capital expenditures. In addition, renovations and capital improvements
of hotels usually generate little or no cash flow until the project’s completion. We may not be able to fund such projects solely
from cash provided from our operating activities. Consequently, we will rely upon the availability of debt or equity capital and reserve
funds to fund renovations and capital improvements and our ability to carry them out will be limited if we cannot obtain satisfactory
debt or equity financing, which will depend on, among other things, market conditions. No assurances can be made that we will be able
to obtain additional equity or debt financing or that we will be able to obtain such financing on favorable terms. In addition, labor
shortages, supply chain disruptions, inflationary pressures on materials and services, and increased regulatory requirements related
to environmental sustainability or climate-resilient construction could further escalate costs or extend project timelines.

Renovations
and other capital improvements may give rise to the following additional risks, among others: construction cost overruns and delays;
increased prices of materials due to tariffs; temporary closures of all or a portion of the Hotel to customers; disruption in service
and room availability causing reduced demand, occupancy and rates; and possible environmental issues.

As
a result, renovations and any other future capital improvement projects may increase our expenses, reduce our cash flows and our revenues.
If capital expenditures exceed our expectations, this excess would have an adverse effect on our available cash. Significant delays or
cost overruns could also impact our ability to maintain competitive standards and customer satisfaction, potentially reducing revenues.

We
have substantial debt, and we may incur additional indebtedness, which may negatively affect our business and financial results.

We
have