Mon, Sep 30, 8:03 PM (81 days ago)
Portsmouth Square, Inc. reported a net loss of $11,375,000 for the fiscal year ending June 30, 2024, compared to a loss of $13,203,000 in the previous year. Revenue from hotel operations decreased slightly to $41,886,000, reflecting a decline in room revenue, while operating expenses rose to $41,215,000, primarily due to increased costs in salaries, utilities, and interest expenses. The hotel's RevPAR was $177, down from $180, with occupancy averaging 82%. The company faced significant financial challenges, including a substantial accumulated deficit of $117,102,000 and maturing debts totaling $100,783,000, which were extended to January 2025 through forbearance agreements. Future refinancing remains uncertain, raising doubts about the company's ability to continue as a going concern. Strategically, Portsmouth has completed significant renovations, enhancing its market position as evidenced by a RevPAR index of 150% post-renovation. However, risks remain, including economic downturns, competition, and the ongoing recovery of the San Francisco hospitality market. The company emphasizes cost management and liquidity preservation amidst these challenges.