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InterGroup Swings to Earnings in Q3 on Improved Hotel Revenues
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Shares of The InterGroup Corporation (INTG - Free Report) have lost 0.9% since the company reported results for the quarter ended March 31, 2026, compared with a 0.01% change in the S&P 500 index over the same period. Over the past month, InterGroup shares have advanced 10.5%, outperforming the S&P 500’s 5% gain.
For the fiscal third quarter of 2026, InterGroup reported net income of 21 cents per share against a net loss of 27 cents per share in the year-ago quarter.
Total revenues increased 21.1% year over year to $20.4 million from $16.8 million. Operating income rose to $4.3 million from $2.4 million in the prior-year period, supported by stronger hotel performance and lower losses on marketable securities.
Net income attributable to the company was $0.5 million against a net loss attributable to the company of $0.6 million in the year-ago quarter.
The Intergroup Corporation Price, Consensus and EPS Surprise
The company’s hotel segment, anchored by the Hilton San Francisco Financial District, remained the primary growth driver during the quarter. Hotel revenues climbed 35.1% year over year to $16.5 million from $12.2 million. Room revenues increased to $14.4 million from $10.5 million, while food and beverage revenues rose to $1 million from $0.7 million. Operating income before gain on extinguishment of debt, interest expense, depreciation and amortization more than doubled to $5.1 million from $2.5 million.
Management attributed the improvement to higher average daily rates (ADR), stronger occupancy and additional room inventory created through renovations. ADR increased to $306 from $241, occupancy improved to 94% from 89%, and revenue per available room (RevPAR) rose to $287 from $215. The company said the return of 14 renovated guest rooms to inventory, stronger business travel trends and increased demand tied to the Super Bowl hosted in San Francisco during the quarter contributed to the gains.
Real Estate Segment Mixed Despite Property Sale Gain
Revenues from InterGroup’s real estate operations declined to $3.9 million from $4.6 million in the prior-year quarter, although operating expenses decreased modestly to $2.4 million due to cost-control initiatives. Segment income from real estate operations declined to $1.5 million from $2.2 million.
Investment Portfolio Losses Narrow
InterGroup’s investment transactions segment continued to weigh on results, though losses narrowed substantially from the prior-year level. The company posted a net loss on marketable securities of $0.05 million in the quarter compared with a loss of $1.1 million a year ago. Trading and management expenses declined marginally to $0.3 million.
As of March 31, 2026, the company’s marketable securities portfolio totaled $1.1 million, with approximately 81% invested in REITs and real estate companies.
Liquidity and Balance Sheet Position
InterGroup ended the quarter with $9.3 million in cash and cash equivalents, up from $5.1 million as of June 30, 2025. Restricted cash totaled $8 million. Net cash provided by operating activities for the first nine months of fiscal 2026 increased to $2.7 million from $1.7 million a year ago.
Management said liquidity remained stable following Portsmouth Square’s refinancing completed in March 2025. The company noted that all debt obligations remained current and in compliance with applicable covenants as of March 31, 2026. The hotel’s debt service coverage ratio threshold was met during the quarter, although lender-controlled lockbox arrangements remained in place because the required two consecutive qualifying quarters had not yet been achieved.
Other Developments
During the quarter, Portsmouth continued hotel property enhancements, including renovations that converted former administrative office space into 14 additional guest rooms returned to service in September 2025. The company also maintained capital preservation initiatives at the hotel, including deferral of non-essential projects, renegotiation of vendor agreements and reductions in controllable operating expenses.
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InterGroup Swings to Earnings in Q3 on Improved Hotel Revenues
Shares of The InterGroup Corporation (INTG - Free Report) have lost 0.9% since the company reported results for the quarter ended March 31, 2026, compared with a 0.01% change in the S&P 500 index over the same period. Over the past month, InterGroup shares have advanced 10.5%, outperforming the S&P 500’s 5% gain.
For the fiscal third quarter of 2026, InterGroup reported net income of 21 cents per share against a net loss of 27 cents per share in the year-ago quarter.
Total revenues increased 21.1% year over year to $20.4 million from $16.8 million. Operating income rose to $4.3 million from $2.4 million in the prior-year period, supported by stronger hotel performance and lower losses on marketable securities.
Net income attributable to the company was $0.5 million against a net loss attributable to the company of $0.6 million in the year-ago quarter.
The Intergroup Corporation Price, Consensus and EPS Surprise
The Intergroup Corporation price-consensus-eps-surprise-chart | The Intergroup Corporation Quote
Hotel Operations Drive Revenue Growth
The company’s hotel segment, anchored by the Hilton San Francisco Financial District, remained the primary growth driver during the quarter. Hotel revenues climbed 35.1% year over year to $16.5 million from $12.2 million. Room revenues increased to $14.4 million from $10.5 million, while food and beverage revenues rose to $1 million from $0.7 million. Operating income before gain on extinguishment of debt, interest expense, depreciation and amortization more than doubled to $5.1 million from $2.5 million.
Management attributed the improvement to higher average daily rates (ADR), stronger occupancy and additional room inventory created through renovations. ADR increased to $306 from $241, occupancy improved to 94% from 89%, and revenue per available room (RevPAR) rose to $287 from $215. The company said the return of 14 renovated guest rooms to inventory, stronger business travel trends and increased demand tied to the Super Bowl hosted in San Francisco during the quarter contributed to the gains.
Real Estate Segment Mixed Despite Property Sale Gain
Revenues from InterGroup’s real estate operations declined to $3.9 million from $4.6 million in the prior-year quarter, although operating expenses decreased modestly to $2.4 million due to cost-control initiatives. Segment income from real estate operations declined to $1.5 million from $2.2 million.
Investment Portfolio Losses Narrow
InterGroup’s investment transactions segment continued to weigh on results, though losses narrowed substantially from the prior-year level. The company posted a net loss on marketable securities of $0.05 million in the quarter compared with a loss of $1.1 million a year ago. Trading and management expenses declined marginally to $0.3 million.
As of March 31, 2026, the company’s marketable securities portfolio totaled $1.1 million, with approximately 81% invested in REITs and real estate companies.
Liquidity and Balance Sheet Position
InterGroup ended the quarter with $9.3 million in cash and cash equivalents, up from $5.1 million as of June 30, 2025. Restricted cash totaled $8 million. Net cash provided by operating activities for the first nine months of fiscal 2026 increased to $2.7 million from $1.7 million a year ago.
Management said liquidity remained stable following Portsmouth Square’s refinancing completed in March 2025. The company noted that all debt obligations remained current and in compliance with applicable covenants as of March 31, 2026. The hotel’s debt service coverage ratio threshold was met during the quarter, although lender-controlled lockbox arrangements remained in place because the required two consecutive qualifying quarters had not yet been achieved.
Other Developments
During the quarter, Portsmouth continued hotel property enhancements, including renovations that converted former administrative office space into 14 additional guest rooms returned to service in September 2025. The company also maintained capital preservation initiatives at the hotel, including deferral of non-essential projects, renegotiation of vendor agreements and reductions in controllable operating expenses.