Tue, Oct 1, 10:01 AM (81 days ago)
The InterGroup Corporation reported a net loss of $12,556,000 for the fiscal year ended June 30, 2024, compared to a loss of $9,932,000 in the prior year. Total revenues slightly increased to $58,140,000 from $57,607,000, with hotel revenues decreasing marginally to $41,886,000. Operating expenses rose to $56,686,000, driven by higher costs in hotel operations and interest expenses, which increased to $12,007,000 from $8,585,000. The company experienced significant losses in marketable securities, totaling $1,633,000 for the year. The hotel's RevPAR was $176.99, outperforming its competitive set, which averaged $161.47. Despite challenges, including a perception issue in San Francisco, the hotel completed renovations, enhancing its competitive position. The company’s financial condition remains uncertain, with substantial debt obligations totaling $100,783,000 due to forbearance agreements extending until January 2025. The company’s cash and cash equivalents stood at $4,333,000, down from $5,960,000 in 2023. Key risks include reliance on the San Francisco market and ongoing economic pressures. The management is actively seeking refinancing options to address liquidity concerns.