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InterGroup Swings to Earnings in Q2 on Hotel Growth, Asset Sale
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Shares of The InterGroup Corporation (INTG - Free Report) have gained 0.2% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 index’s 1.1% growth over the same time frame. Over the past month, the stock has declined 4.2% compared with the S&P 500’s 1.1% decline.
For the second quarter of fiscal 2026, InterGroup reported net income per share of 71 cents against a net loss of $1.26 per share a year earlier.
Total revenues of $17.3 million indicated a 20% rise from $14.4 million in the prior-year quarter.
Net income attributable to The InterGroup Corporation was $1.5 million against a net loss of $2.7 million a year earlier. The improvement reflected stronger operating performance and a $3.5 million gain on the sale of real estate during the quarter.
The InterGroup Corporation Price, Consensus and EPS Surprise
Hotel operations remained the company’s largest revenue contributor. Hotel revenue rose 27% year over year to $12.7 million from $10 million. Room revenue increased to $11.1 million from $8.4 million, supported by a higher average daily rate (ADR) and occupancy. For the quarter, ADR climbed to $234 from $190, occupancy improved to 92% from 88%, and revenue per available room (RevPAR) increased to $215 from $168.
Operating income before interest and depreciation from the hotel segment rose to $2.2 million from $0.9 million, while mortgage interest expense declined to $2.4 million from $2.8 million.
Real estate operations also contributed to growth. Revenue increased to $4.6 million from $4.5 million, with segment income of $2.2 million compared with $2.3 million in the prior-year period. The company recorded a $3.5 million gain from the sale of a 12-unit multifamily property in Los Angeles during the quarter.
Investment transactions produced a smaller net loss of $0.3 million compared with $0.9 million a year earlier, reflecting reduced volatility in marketable securities.
Management Commentary and Market Conditions
Management noted that hotel results benefited from returning 14 renovated guest rooms to available inventory in September 2025. However, the broader San Francisco hospitality market continues to face headwinds, including slower recovery in business travel, remote work trends and municipal challenges affecting demand. These factors have shifted the hotel’s revenue mix toward leisure travel and could limit future growth.
Liquidity and Balance Sheet
As of Dec. 31, 2025, InterGroup had $6.6 million in cash and cash equivalents and $8.4 million in restricted cash. Total assets stood at $101.1 million, while total liabilities were $215.7 million. The company reported shareholders’ deficit of $114.5 million, reflecting its leveraged capital structure, including substantial mortgage obligations.
Other Developments
In December 2025, InterGroup completed the sale of a non-core 12-unit multifamily property in Los Angeles for $4.9 million, recognizing a gain of $3.5 million. The transaction generated net cash proceeds of approximately $2.6 million after repayment of related mortgage debt. The sale was part of the company’s capital allocation strategy and liquidity heading into the second half of fiscal 2026.
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InterGroup Swings to Earnings in Q2 on Hotel Growth, Asset Sale
Shares of The InterGroup Corporation (INTG - Free Report) have gained 0.2% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 index’s 1.1% growth over the same time frame. Over the past month, the stock has declined 4.2% compared with the S&P 500’s 1.1% decline.
For the second quarter of fiscal 2026, InterGroup reported net income per share of 71 cents against a net loss of $1.26 per share a year earlier.
Total revenues of $17.3 million indicated a 20% rise from $14.4 million in the prior-year quarter.
Net income attributable to The InterGroup Corporation was $1.5 million against a net loss of $2.7 million a year earlier. The improvement reflected stronger operating performance and a $3.5 million gain on the sale of real estate during the quarter.
The InterGroup Corporation Price, Consensus and EPS Surprise
The InterGroup Corporation price-consensus-eps-surprise-chart | The InterGroup Corporation Quote
Other Key Business Metrics
Hotel operations remained the company’s largest revenue contributor. Hotel revenue rose 27% year over year to $12.7 million from $10 million. Room revenue increased to $11.1 million from $8.4 million, supported by a higher average daily rate (ADR) and occupancy. For the quarter, ADR climbed to $234 from $190, occupancy improved to 92% from 88%, and revenue per available room (RevPAR) increased to $215 from $168.
Operating income before interest and depreciation from the hotel segment rose to $2.2 million from $0.9 million, while mortgage interest expense declined to $2.4 million from $2.8 million.
Real estate operations also contributed to growth. Revenue increased to $4.6 million from $4.5 million, with segment income of $2.2 million compared with $2.3 million in the prior-year period. The company recorded a $3.5 million gain from the sale of a 12-unit multifamily property in Los Angeles during the quarter.
Investment transactions produced a smaller net loss of $0.3 million compared with $0.9 million a year earlier, reflecting reduced volatility in marketable securities.
Management Commentary and Market Conditions
Management noted that hotel results benefited from returning 14 renovated guest rooms to available inventory in September 2025. However, the broader San Francisco hospitality market continues to face headwinds, including slower recovery in business travel, remote work trends and municipal challenges affecting demand. These factors have shifted the hotel’s revenue mix toward leisure travel and could limit future growth.
Liquidity and Balance Sheet
As of Dec. 31, 2025, InterGroup had $6.6 million in cash and cash equivalents and $8.4 million in restricted cash. Total assets stood at $101.1 million, while total liabilities were $215.7 million. The company reported shareholders’ deficit of $114.5 million, reflecting its leveraged capital structure, including substantial mortgage obligations.
Other Developments
In December 2025, InterGroup completed the sale of a non-core 12-unit multifamily property in Los Angeles for $4.9 million, recognizing a gain of $3.5 million. The transaction generated net cash proceeds of approximately $2.6 million after repayment of related mortgage debt. The sale was part of the company’s capital allocation strategy and liquidity heading into the second half of fiscal 2026.