Vista Partners LLC | Inside InterGroup’s Fiscal 2025: Hotel Profits Surge, Real Estate Rises, Stock Recovers -( $INTG )Vista Partners LLC

Inside InterGroup’s Fiscal 2025: Hotel Profits Surge, Real Estate Rises, Stock Recovers -( $INTG )

InterGroup Corporation (INTG) recently reported marked financial improvement for the fiscal year ended June 30, 2025, with strengthened core business results and a substantial rebound in its liquidity position, while returning to compliance with Nasdaq listing requirements.

Stock Performance Overview

Over the past year, InterGroup Corporation’s stock (NASDAQ: INTG) exhibited considerable volatility, trading in a 52-week range from $9.57 to an intraday high of $39.50 today.

Financial Performance and Segment Results

For fiscal 2025, InterGroup narrowed its consolidated net loss to $7.55 million, a notable reduction from the prior year’s $12.56 million loss. The company posted EBITDA of $13.2 million, representing an impressive 131.7% year-over-year increase, underscoring the strong performance in its operating segments. Hotel and real estate operations—historically volatile under pandemic-era challenges—delivered robust recoveries. Hotel segment income surged by 51.9% to $8.73 million, bolstered by occupancy rates reaching 92% and a 13% uptick in RevPAR to $200. Real estate operations similarly advanced, with segment income up 31.9% at $8.47 million, fueled by higher occupancy and rent growth across InterGroup’s multifamily portfolio.

Liquidity and Capital Actions

InterGroup’s liquidity position improved materially, with cash and equivalents rising 74.8% to $15.2 million at fiscal year-end. The company cites successful refinancing transactions at its Hilton San Francisco Financial District property—securing a $67 million mortgage and modifying mezzanine financing terms—as key to stabilizing operations and alleviating previous going-concern uncertainties at subsidiary Portsmouth Square, Inc. These actions also expanded the company’s financial flexibility, helping reverse a late-2024 Nasdaq non-compliance notice and restoring its market listing.

Strategic Position and Risks

InterGroup operates through three main segments: hotel operations (anchored by the Hilton San Francisco Financial District), real estate operations throughout Texas and Southern California, and investment transactions—though continued losses in investing weighed on consolidated results. Leadership remains optimistic, citing improvements in San Francisco’s hospitality market and longer-term real estate fundamentals, while warning that the investment segment’s volatility and ongoing interest expense remain watchpoints for future quarters.

Governance and Outlook

Under the guidance of CEO John Winfield, InterGroup (INTG) now appears better capitalized and positioned for sustained value creation, with its asset and revenue base concentrated in real estate holdings and hospitality. As of the most recent updates, the firm employs 28 individuals and maintains a diversified portfolio, though its equity value and Wall Street sentiment remain sensitive to broader market and sector trends.