The InterGroup Corporation’s Hilton SF Stake Puts It at the Heart of San Francisco’s AI-Driven Revival – ( $AAPL $INTG $NVDA )

By John F. Heerdink, Jr.

The InterGroup Corporation (NASDAQ: INTG) is emerging as a compelling turnaround story in 2025, combining solid real estate assets with a strategic push to unlock shareholder value and capitalize on market dislocations.

Recent Highlights and Stock Momentum

In August, InterGroup’s (INTG) shares surged by 58% after a prolonged period of declines and is continuing to edge higher so far in September closing at $19.01 on Tuesday, September 9, possibly signaling renewed investor confidence. With interest rates poised to decline, InterGroup may further positioned as a compelling investment opportunity to look further into this year.

Underlying Business Strengths

The company has a diverse portfolio of real estate including 16 multifamily apartment complexes across the U.S., a commercial real estate property and a 75% stake in the iconic Hilton San Francisco Financial District Hotel. Located adjacent to Jackson Square where Joni Ives, the former Apple (AAPL) design executive, who has been acquiring properties in Jackson Square creating a surge in real estate prices in the Jackson Square area as he is building his new design firm LoveFrom and which has recently received a $6.5 billion offer from Open AI to become part of the Open AI organization. The hotel is also adjoining the iconic TransAmerica Pyramid building in the Financial District. It appears the hotel is located strategically considering all that is going on in San Francisco. Recently, NVIDIA’a (NVDA) Jensen Huang stated that San Francisco is thriving because of AI and was highlighted to be seeking office space in The City.

Financial Outlook and Valuation

Management’s capital discipline and strategic refinancings, including a headline-grabbing move at the Hilton San Francisco property earlier this year as The City rebounds on the broad shoulders of Artificial Intelligence related funding & investing, are seemingly priming InterGroup for margin expansion and improved cash flow. The company trades at a remarkably low ~.5x price-to-sales ratio—well below industry norms—and significantly below its intrinsic value.

Strategic Position and Growth Catalysts

With a footprint concentrated in high-demand markets like Texas, Southern California, & San Francisco, InterGroup seems to likely poised to benefit from demographic trends, rebounding hospitality revenues, and further capital recycling opportunities. The company’s mix of multifamily, commercial, and hospitality investments seems to position it as a diversified value play in the real estate sector.

Bottom Line

With disciplined management, a diverse portfolio, recent operational wins, and strong momentum and potentially lower interest rates. Most importantly seeing recently that management and corporate insiders were purchasing INTG stock gives us additional confidence that management is eating its own cooking and seemingly confidence in the companies future prospects. The InterGroup Corporation (INTG) is an interesting small-cap opportunity to consider for those looking for real estate exposure heading into year-end 2025 and beyond.