Portsmouth Sq Stock Price, News & Analysis

Portsmouth Square, Inc. (PRSI) is a lodging company in the consumer cyclical sector. According to company disclosures, Portsmouth Square, Inc. (OTC: PRSI) owns the Hilton San Francisco Financial District, a full-service hotel property located in San Francisco, California. The company is headquartered in Los Angeles, California and its common stock is quoted on the OTC market under the symbol PRSI.

The Hilton San Francisco Financial District owned by Portsmouth Square, Inc. is described as a 544-room full-service hotel with extensive meeting space, a restaurant and lounge, and a five-level parking garage. The hotel operates under a franchise license with Hilton through 2030 and is managed by Aimbridge Hospitality. This structure means Portsmouth Square, Inc. functions as the property owner and franchisor/licensee while a third-party manager runs day-to-day hotel operations under the Hilton brand.

Portsmouth Square, Inc. reports its performance with a focus on hotel-related revenue and operating metrics. The company highlights hotel revenue from categories such as rooms, food and beverage, garage operations, and other operating departments. It also discloses key performance indicators used in the lodging industry, including average daily rate (ADR), occupancy, and revenue per available room (RevPAR), and provides definitions for these metrics in its public communications.

In its financial reporting, Portsmouth Square, Inc. presents results prepared in accordance with U.S. GAAP and also discusses certain non-GAAP measures. The company provides reconciliations from net loss (GAAP) to EBITDA and, for some periods, to Adjusted EBITDA, explaining that these measures are used by management to evaluate operating performance, liquidity, and period-over-period comparability. The company emphasizes that these non-GAAP measures are supplemental and not a substitute for GAAP results, and it presents net income (loss) with equal or greater prominence.

Portsmouth Square, Inc. has also discussed its capital structure and financing arrangements related to the Hilton San Francisco Financial District hotel. Through its wholly owned subsidiary Justice Operating Company, LLC, the company entered into a mortgage loan agreement secured by the hotel and arranged by a real estate investment banking firm. The loan bears a floating interest rate based on the 30-day Secured Overnight Financing Rate (SOFR) plus a stated spread, and the subsidiary has obtained an interest rate cap to limit SOFR exposure. Another subsidiary, Justice Mezzanine Company, LLC, modified its mezzanine loan with a real estate investment trust affiliate, obtaining a fixed interest rate and maturity profile that includes potential extension options.

In public statements, Portsmouth Square, Inc. has linked its refinancing activities to improved financial flexibility and stability in managing its hospitality asset. The company has also reported that a prior substantial doubt about its ability to continue as a going concern was alleviated following the completion of the hotel refinancing and based on its liquidity position and operating forecasts, as described in its fiscal year results communication.

The company’s disclosures also reference trends in the San Francisco hospitality market, noting management’s observations of stabilization in convention activity, tourism, and business travel relative to earlier periods. Portsmouth Square, Inc. has indicated that the completion of a comprehensive renovation of the hotel, with full room availability thereafter, has supported its operating performance metrics such as occupancy and RevPAR.

Portsmouth Square, Inc. is incorporated in California, as indicated in its SEC filings. The company has no securities registered under Section 12(b) of the Securities Exchange Act of 1934 and reports that it has no class of securities listed on a national securities exchange. Its filings and press releases provide investors with details on hotel operations, capital improvements, interest expense (including related-party interest payable to The InterGroup Corporation), and gains or losses related to debt extinguishment where applicable.

Corporate governance information disclosed in SEC filings includes changes to the Board of Directors. For example, the company has reported the resignation of a director and the appointment of a new director with extensive experience in financial public relations and capital markets, including prior service on the boards of multiple publicly traded companies. The Board of Directors has stated that this experience is relevant to the director’s role at Portsmouth Square, Inc.

Business Model and Operations

Portsmouth Square, Inc.’s business model centers on the ownership and operation, through subsidiaries and third-party management, of a single major hospitality asset: the Hilton San Francisco Financial District. Revenue is reported by the company as hotel revenue, with detail by category such as rooms, food and beverage, garage, and other operating departments. Operating expenses and capital improvements related to the hotel are also disclosed, along with interest expense on mortgage and mezzanine debt.

The company’s communications highlight the importance of hotel operating metrics and capital structure management. Management commentary emphasizes rate discipline, cost controls, and merchandising into convention and group calendars as demand in San Francisco normalizes, based on the company’s observations. The company also notes the impact of full room availability following completion of a comprehensive renovation of the hotel.

Financial Reporting and Key Metrics

Portsmouth Square, Inc. reports GAAP net loss figures and provides detail on hotel revenue, hotel operating expenses, and capital improvements. It supplements these with non-GAAP measures such as EBITDA and Adjusted EBITDA, reconciling them to net loss. The company explains that Adjusted EBITDA may exclude certain non-operating items, such as gains on extinguishment of debt, to improve period-to-period comparability.

The company defines and reports ADR as the average room rate paid, occupancy as rooms sold divided by rooms available, and RevPAR as ADR multiplied by occupancy. These metrics are used to describe the performance of the Hilton San Francisco Financial District and to highlight trends in occupancy and room rates over time.

Capital Structure and Refinancing

Through its subsidiaries, Portsmouth Square, Inc. has entered into a mortgage loan and a mezzanine loan secured by its hotel asset. The mortgage loan is based on SOFR plus a stated margin, with an interest rate cap limiting SOFR exposure to a maximum rate. The mezzanine loan modification provides a fixed interest rate and a maturity schedule with potential extension options. The company has described this refinancing as a strategic step in its financial management, intended to provide favorable terms and financial stability.

In its fiscal year results, Portsmouth Square, Inc. reports interest expense that includes related-party interest payable to The InterGroup Corporation, and it discloses the impact of a gain on extinguishment of debt related to a waiver of accrued default interest by the mezzanine lender, noting that no mezzanine principal was forgiven.

Corporate Governance

SEC filings for Portsmouth Square, Inc. describe changes in the composition of its Board of Directors. The company has reported the resignation of a director and the appointment of a new director with extensive experience in capital markets, institutional and analyst outreach, financings, mergers and acquisitions, and corporate governance. The Board has stated that this background supports the director’s ability to serve the company. The company also notes that the director will receive standard compensation for non-employee directors and that there are no related-party transactions requiring disclosure under Item 404(a) of Regulation S-K.

FAQs about Portsmouth Square, Inc. (PRSI)

• What does Portsmouth Square, Inc. do?
  

  Portsmouth Square, Inc. owns the Hilton San Francisco Financial District, a 544-room full-service hotel with extensive meeting space, a restaurant and lounge, and a five-level parking garage. The hotel operates under a franchise license with Hilton and is managed by Aimbridge Hospitality.

• Where is Portsmouth Square, Inc. headquartered?
  

  The company states that it is headquartered in Los Angeles, California.

• On which market does PRSI trade?
  

  Portsmouth Square, Inc. indicates that its common stock is quoted on the OTC market under the symbol PRSI. Its SEC filings state that it has no securities registered on a national securities exchange.

• What is the primary asset of Portsmouth Square, Inc.?
  

  The primary asset is the Hilton San Francisco Financial District hotel, which the company describes as a 544-room full-service property with meeting space, a restaurant and lounge, and a multi-level parking garage.

• How is the Hilton San Francisco Financial District operated?
  

  The hotel operates under a franchise license with Hilton through 2030 and is managed by Aimbridge Hospitality, as disclosed by the company.

• What key performance indicators (KPIs) does Portsmouth Square, Inc. report?
  

  The company reports hotel KPIs including average daily rate (ADR), occupancy, and revenue per available room (RevPAR). It defines ADR as the average room rate paid, occupancy as rooms sold divided by rooms available, and RevPAR as ADR multiplied by occupancy.

• Does Portsmouth Square, Inc. use non-GAAP financial measures?
  

  Yes. The company presents EBITDA and, for some periods, Adjusted EBITDA as non-GAAP measures, with reconciliations from net loss (GAAP). It explains that these measures are used to evaluate operating performance and comparability but are not a substitute for GAAP results.

• What refinancing activity has Portsmouth Square, Inc. undertaken?
  

  The company reports that its subsidiary Justice Operating Company, LLC obtained a mortgage loan secured by the Hilton San Francisco Financial District, based on SOFR plus a stated spread and protected by an interest rate cap. Another subsidiary, Justice Mezzanine Company, LLC, modified a mezzanine loan with a fixed interest rate and extension options.

• How did the refinancing affect Portsmouth Square, Inc.’s going-concern assessment?
  

  In its fiscal year results communication, the company states that substantial doubt about its ability to continue as a going concern was alleviated following the March 28, 2025 hotel refinancing, current liquidity, and operating forecasts.

• Has Portsmouth Square, Inc. reported changes to its Board of Directors?
  

  Yes. An 8-K filing reports the resignation of a director and the appointment of a new director with extensive experience in financial public relations and capital markets. The Board determined that this experience supports the director’s role at the company.