Hotel rebound lifts InterGroup (NASDAQ: INTG) to Q3 2026 profit as revenue grows
Rhea-AI Filing Summary
The InterGroup Corporation reported significantly stronger fiscal third-quarter 2026 results as San Francisco hospitality demand improved. Total revenues rose to $20.372 million from $16.824 million, while income from operations increased to $4.260 million from $2.350 million. GAAP net income was $0.595 million, reversing a GAAP net loss of $0.750 million a year earlier.
Performance was driven mainly by the Hilton San Francisco Financial District, where hotel revenues grew to $16.497 million from $12.210 million and exceeded the comparable pre-pandemic 2019 quarter by about $1.028 million. For the quarter, ADR reached $306, occupancy was 94%, and RevPAR was $287. Year-to-date, total revenues were $55.586 million and income from operations was $9.007 million, supported by a $3.508 million gain on a December 2025 real estate sale and lower losses on marketable securities.
Positive
- Sharp improvement in profitability: Q3 2026 income from operations rose to $4.260 million from $2.350 million and GAAP net income swung to $0.595 million from a $0.750 million loss, supported by strong hotel performance and lower investment losses.
Negative
- None.
Insights
Stronger hotel performance turned losses into profits in Q3 2026.
The InterGroup Corporation shows clear operating momentum in fiscal Q3 2026. Total revenues climbed to $20.372 million and income from operations nearly doubled to $4.260 million, shifting to GAAP net income of $0.595 million from a prior-year loss.
The core driver is the Hilton San Francisco Financial District, where Q3 hotel revenues increased to $16.497 million and surpassed the comparable pre-pandemic quarter by about $1.028 million. Hotel metrics strengthened, with ADR at $306, occupancy at 94%, and RevPAR at $287, reflecting healthier San Francisco demand and event-related activity.
Year-to-date, revenues reached $55.586 million and income from operations was $9.007 million, aided by a $3.508 million gain on sale of a non-core multifamily property. As of March 31 2026, cash, cash equivalents and restricted cash totaled $17.323 million. Future filings may clarify how sustained market recovery and investment results affect longer-term earnings stability.
8-K Event Classification
Key Figures
Key Terms
ADR financial
RevPAR financial
restricted cash financial
GAAP net income financial
forward-looking statements regulatory
Earnings Snapshot
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| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release, dated May 11, 2026 | |
| 104 | Cover Page Interactive Data File |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE INTERGROUP CORPORATION | ||
| Dated: May 11, 2026 | By: | /s/ John V. Winfield |
| Chairman of the Board; President and Chief Executive Officer | ||
Exhibit 99.1
The InterGroup Corporation Reports Third Quarter Fiscal 2026 Results; Operating Performance Improves Year-Over-Year as San Francisco Recovery Progresses
Los Angeles, California — May 11, 2026
The InterGroup Corporation (NASDAQ: INTG) (the “Company” or “InterGroup”) today announced financial results for the fiscal third quarter ended March 31, 2026. InterGroup is a diversified holding company with interests in hospitality (through its majority-owned subsidiary Portsmouth Square, Inc.), real estate operations, and investment transactions. The discussion below is derived from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
Third Quarter Fiscal 2026 Highlights (Three Months Ended March 31, 2026 vs. 2025)
| ● | Total revenues increased to $20.372 million from $16.824 million (+21%). | |
| ● | Income from operations increased to $4.260 million from $2.350 million (+81%). | |
| ● | GAAP net income was $0.595 million, compared to a GAAP net loss of $0.750 million in the prior-year quarter. | |
| ● | Net income attributable to InterGroup was $0.457 million, or $0.21 per diluted share, compared to a net loss attributable to InterGroup of $0.578 million, or $0.27 per share, in the prior-year quarter. | |
| ● | Hotel revenues increased to $16.497 million from $12.210 million (+35%). For additional context, Hotel revenues for the quarter ended March 31, 2026 exceeded the comparable pre-pandemic quarter ended March 31, 2019 by approximately $1.028 million. | |
| ● | Real estate revenues were $3.875 million compared to $4.614 million in the prior-year quarter (-16%). | |
| ● | Net loss from investment transactions was $(0.342) million compared to $(1.379) million in the prior-year quarter. |
Hotel Operating Metrics (Hilton San Francisco Financial District)
| Three months ended March 31 | ADR | Occupancy | RevPAR | |||||||||
| 2026 | $ | 306 | 94 | % | $ | 287 | ||||||
| 2025 | $ | 241 | 89 | % | $ | 215 | ||||||
Key Drivers and Market Context
Management attributed year-over-year improvement primarily to stronger hotel operating results, including improved ADR and occupancy, and continued progress in San Francisco demand trends. The quarter also benefited from event-related activity in the market, including the Super Bowl. Results further benefited from substantially lower losses in marketable securities compared with the prior-year quarter.
While revenues improved meaningfully year-over-year, net income was partially offset by higher hotel operating expenses associated with increased activity levels, as well as ongoing fixed charges including mortgage interest expense and depreciation and amortization.
Year-to-Date Highlights (Nine Months Ended March 31, 2026 vs. 2025)
| ● | Total revenues increased to $55.586 million from $48.171 million (+15%). | |
| ● | Real estate revenues were $14.010 million compared to $14.176 million in the prior-year period (-1%). | |
| ● | Income from operations increased to $9.007 million from $6.332 million (+42%). | |
| ● | GAAP net income was $0.398 million, compared to a GAAP net loss of $5.299 million in the prior-year period. | |
| ● | Net income attributable to InterGroup was $1.437 million, or $0.67 per diluted share, compared to a net loss attributable to InterGroup of $3.701 million, or $1.71 per share, in the prior-year period. | |
| ● | The nine-month period included a GAAP gain on sale of real estate of $3.508 million related to the December 2025 disposition of a non-core multifamily property. |
Liquidity and Capital Resources
As of March 31, 2026, cash, cash equivalents and restricted cash totaled $17.323 million (cash and cash equivalents of $9.283 million and restricted cash of $8.040 million). Marketable securities measured at fair value were $1.096 million at March 31, 2026. Restricted cash consists primarily of funds held in lender-controlled accounts related to the Hotel financing.
Management Commentary
David C. Gonzalez, Chief Operating Officer of InterGroup, said:
“Our third quarter results reflect improved operating performance year-over-year. For additional context, Hotel revenues for the quarter ended March 31, 2026 exceeded the comparable pre-pandemic quarter ended March 31, 2019 by approximately $1.028 million.In hospitality, higher room revenues and improved ADR and occupancy, together with improved room availability, contributed to stronger results. Across our real estate portfolio, we remained focused on disciplined operations and property-level execution.”
John V. Winfield, President, Chairman of the Board and Chief Executive Officer of InterGroup, added:
“We remain cautiously optimistic that the recovery of the City of San Francisco is progressing, including signs of supporting in business travel and event-related demand. On the investment side, results benefited from substantially lower losses in marketable securities compared with the prior-year quarter, consistent with our focus on liquidity and risk awareness.”
About The InterGroup Corporation
The InterGroup Corporation (NASDAQ: INTG) is a diversified holding company with interests in hospitality, real estate, and marketable securities. InterGroup consolidates its majority-owned subsidiary Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District hotel and related facilities.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not statements of historical fact and are based on current expectations and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including factors described in the Company’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and its Annual Report on Form 10-K for the year ended June 30, 2025. The Company undertakes no obligation to update forward-looking statements except as required by law.
Investor Contact
The InterGroup Corporation
1516 S. Bundy Drive, Suite 200
Los Angeles, CA 90025
(310) 889-2500