The InterGroup Corporation (INTG): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of a diversified holding company, trying to see where the real value is locked up in The InterGroup Corporation (INTG) as of late 2025. Honestly, their model is a fascinating mix: you have a prime, full-service hotel-the 558-room Hilton in San Francisco-driving $46,363,000 in FY2025 revenue, sitting alongside active management of 16 apartment complexes. But the real story is how they manage the debt load, evidenced by the ~$10.68 million in interest expense last year, against their $15,195,000 in cash on hand as of June 30, 2025. This Business Model Canvas breaks down exactly how The InterGroup Corporation balances hospitality, stable multifamily rentals, and investment plays; check out the nine blocks below to see the full picture of their strategy.

The InterGroup Corporation (INTG) - Canvas Business Model: Key Partnerships

You're looking at the core external relationships that make The InterGroup Corporation (INTG)'s hospitality and real estate segments function. These aren't just names on a contract; they represent access to capital, brand standards, and operational execution. Here's the breakdown of those key partnerships as of late 2025.

Hilton Brand Affiliation for the San Francisco Hotel Property

The flagship asset, the Hilton San Francisco Financial District, relies on a formal agreement for brand standards and access to the global reservation system. The hotel itself is owned by the majority-owned subsidiary, Portsmouth Square, Inc. The franchise license agreement is with HLT Franchise Holding LLC ("Hilton") and is in effect through January 31, 2030.

The day-to-day management of the 558-room hotel is outsourced to a third party, which is a critical operational partnership. The latest available Key Performance Indicators (KPIs) for the hotel, from the quarter ended September 30, 2025, show the following results, which reflect the benefit of this brand affiliation and management structure:

Mortgage Lenders and Financial Institutions for Debt Financing

Securing and managing debt is a major partnership area, especially following the strategic refinancing announced in April 2025. This involved multiple financial players to secure both senior and mezzanine debt for the San Francisco asset.

• Mortgage Loan Lender: PRIME Finance
• Mortgage Loan Arranger: Eastdil Secured
• Mezzanine Loan Holder: CRED REIT Holdco LLC

The terms of these agreements dictate near-term financial flexibility. Here are the key amounts and rates:

Both the mortgage loan and the mezzanine loan have a maturity of two years, with options to extend for three additional one-year periods.

Majority-Owned Subsidiary Portsmouth Square, Inc. (76% Interest)

Portsmouth Square, Inc. is the direct owner of the hotel property and the entity that secured the recent financing. The InterGroup Corporation holds an approximately 76% ownership interest in Portsmouth Square, Inc., based on the Fiscal Year 2025 results. This relationship means The InterGroup Corporation consolidates Portsmouth Square's results, including its cash position.

As of September 30, 2025, Portsmouth Square, Inc. reported its liquidity position:

• Cash, cash equivalents and restricted cash totaled $10,131,000

The InterGroup Corporation's FY2025 segment income from Real Estate Operations, which includes Portsmouth Square, Inc., was $8,465,000.

Third-Party Hotel Booking and Distribution Channels

While specific booking channel revenue splits aren't public, the management partnership is clearly defined. The hotel operates under a franchise license with Hilton, and its operations are handled by a third-party management company.

The key third-party operational partner is:

• Hotel Management Agreement (HMA) Holder: Aimbridge Hospitality

This partnership covers the management of the 558-room hotel and its five-level parking garage.

Finance: review the impact of the 7.25% mezzanine rate on Q4 2025 interest expense by Wednesday.

The InterGroup Corporation (INTG) - Canvas Business Model: Key Activities

You're looking at the core engine of The InterGroup Corporation, which is really about hands-on management across two distinct, yet intertwined, physical asset classes: multifamily real estate and a major urban hotel. The key activities center on maximizing the performance of these assets while deploying capital strategically and managing a separate pool of financial assets.

The real estate management side involves the active oversight of its property portfolio. This includes the direct management of 16 apartment complexes, which are concentrated in areas like Texas and Southern California, alongside other commercial holdings. For the fiscal year ended June 30, 2025, the Real Estate Operations segment generated segment income of $8,465,000.

The hospitality activity is anchored by The InterGroup Corporation's majority interest in Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District. This is a 558-room hotel operation. The management focus here is clearly on driving occupancy and rate, which paid off in fiscal year 2025 with an occupancy rate of 92% and an Average Daily Rate (ADR) of $218, resulting in a Revenue Per Available Room (RevPAR) of $200.

Strategic capital expenditure (capex) is a necessary activity to maintain and enhance asset value. You saw the hotel complete a comprehensive renovation in June 2024, which benefited the full room availability in fiscal year 2025. Here's a look at the capex deployed across the segments for FY2025:

The final key activity is managing a portfolio of marketable securities and investments, which is handled through the Investing Transactions segment. This area is more volatile, reflecting market conditions. For the full fiscal year 2025, this segment recorded a loss of $(2,502,000). However, looking at the very latest quarterly results for the three months ended September 30, 2025 (Q1 FY2026), the segment showed a modest net gain of $136,000.

To give you a clearer picture of the operating performance driving these activities, here are the segment results for the fiscal year ended June 30, 2025:

• Hotel Operations segment income: $8,732,000
• Real Estate Operations segment income: $8,465,000
• Consolidated Total Revenues: $64.4 million
• Total Hotel Revenues: $46,363,000
• Total Hotel Operating Expenses: $37,631,000

The management team definitely focuses on operational efficiency, as evidenced by the segment income improvements year-over-year. Finance: draft 13-week cash view by Friday.

The InterGroup Corporation (INTG) - Canvas Business Model: Key Resources

You're looking at the core assets that power The InterGroup Corporation (INTG) as of late 2025. These aren't just line items; they are the physical and financial foundations supporting their operations across hospitality and real estate.

The company's real estate portfolio is geographically anchored, which is a key resource for stability. The bulk of their holdings are concentrated in two high-value, albeit sometimes volatile, markets: Texas and Southern California. This concentration dictates a significant portion of their Real Estate Operations segment performance.

The flagship hospitality asset is the Hilton San Francisco Financial District hotel and its associated parking garage. This 544-room hotel, which also includes a five-level underground parking garage, is a major operational component. You should note that a comprehensive renovation was completed in June 2024, meaning fiscal year 2025 results benefited from a full year of operation without rooms being taken offline for construction. Furthermore, this asset was the subject of a strategic refinancing announced on April 1, 2025, which aimed to improve financial flexibility.

Here is a quick look at the scale of the real estate holdings that feed into the Real Estate Operations segment income, which reached $8,465,000 for fiscal year 2025:

Financial strength, or liquidity, is always a critical resource, especially when managing large physical assets. As of June 30, 2025, The InterGroup Corporation reported its cash and equivalents stood at $15,195,000. That's a significant jump, representing a 74.8% increase compared to the same date in 2024, which certainly helps manage near-term obligations.

The operational success of these resources is directly tied to the human capital. The company relies on an experienced real estate and investment management team. This team is responsible for driving the segment income that saw the Hotel Operations reach $8,732,000 in FY2025 and the Real Estate Operations reach $8,465,000 in FY2025. The team's stewardship is also reflected in the hotel's key performance indicators, like the 92% occupancy rate achieved in FY2025.

You can see the direct financial contribution of these key resources:

• Hotel Operations Segment Income (FY2025): $8,732,000
• Real Estate Operations Segment Income (FY2025): $8,465,000
• Cash & Equivalents (as of June 30, 2025): $15,195,000
• Hotel Occupancy (FY2025): 92%

Honestly, the management team's ability to execute on property upgrades while managing debt-like the refinancing of the San Francisco hotel-is what turns these physical assets into realized income.

The InterGroup Corporation (INTG) - Canvas Business Model: Value Propositions

Diversified exposure across hospitality, multifamily, and investment assets

The InterGroup Corporation operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. The Real Estate Operations portfolio includes 16 apartment complexes, one commercial real estate property, and three single-family houses as strategic investments, concentrated in Texas and Southern California. The company reported consolidated total revenues of $64.38 million for the year ended June 30, 2025. The net assets on the balance sheet as of June 2025 were -$0.12 Billion USD, with an accumulated deficit of $(67.98) million. The consolidated net loss for FY2025 was $7.5 million, a reduction from $12.6 million in FY2024.

Prime, full-service hotel offering in the San Francisco Financial District

The primary hospitality asset is the Hilton San Francisco Financial District, which includes 544 guest rooms and suites, a five-level underground parking garage, and other facilities. Hotel revenues for FY2025 were $46,363,000. For the fiscal year ended June 30, 2025, the hotel achieved an Average Daily Rate (ADR) of $218 and an occupancy rate of 92%, resulting in a Revenue Per Available Room (RevPAR) of $200. For the first quarter of fiscal year 2026, the consolidated hotel KPIs showed:

• ADR: $218 (+3.8% YoY)
• Occupancy: 95% (-1 pt YoY)
• RevPAR: $207 (+2.5% YoY)

Stable, income-producing multifamily rental properties

The Real Estate Operations segment contributed segment income of $8,465,000 for FY2025. For the first quarter of fiscal year 2026, Real Estate segment income was $3,157,000, representing a 20.1% year-over-year increase on revenues of $5,495,000. This performance reflects operating fundamentals supported by the multifamily portfolio.

Long-term value creation through real estate held at historical cost

GAAP accounting carries the real estate at historical cost, which management notes can understate the intrinsic value of the assets. The Real Estate Operations segment income improved by 31.9% in FY2025 compared to the prior year. Capital expenditures for real estate in FY2025 totaled $1,739,000.

The InterGroup Corporation (INTG) - Canvas Business Model: Customer Relationships

You're looking at how The InterGroup Corporation (INTG) manages its different customer groups as of late 2025. It's a mix of high-volume, short-term transactional relationships and longer-term contractual agreements across hospitality and property ownership. Honestly, the post-renovation performance at the hotel is a key driver here.

Transactional and Service-Based for Hotel Guests

The relationship with hotel guests, primarily at the Hilton San Francisco Financial District, is purely transactional, focused on service delivery and maximizing room utilization. The success here is clear from the Fiscal Year 2025 numbers, which benefited from the comprehensive renovation finishing up in June 2024, allowing for full room availability all year.

Here's the quick math on the hotel's FY2025 performance metrics:

The Hotel Operations segment income jumped by 51.9% year-over-year, showing that the service relationship is translating well into profit. Capital expenditure for the hotel in FY2025 was $2,252,000.

Direct and Managed Leasing Relationships with Residential Tenants

For residential tenants, the relationship is direct and managed, centered around multi-family rentals. The InterGroup Corporation owns and operates 16 apartment complexes across the United States, with a focus in Texas and Southern California. This segment is critical for stable, recurring cash flow.

The Real Estate Operations segment generated an income of $8,465,000 in FY2025, up 31.9% from the prior year. The company invested $1,739,000 in real estate capital expenditures during FY2025 to maintain these assets.

Investor Relations for Public Equity Shareholders (NASDAQ: INTG)

The relationship with public equity shareholders is governed by regulatory filings and transparent communication regarding financial health and compliance. You'll want to note the recent stability improvements.

• The InterGroup Corporation trades on NASDAQ under the symbol INTG.
• The company regained compliance with Nasdaq listing requirements following the fiscal year ended June 30, 2025.
• Cash and equivalents stood at $15,195,000 as of June 30, 2025, a 74.8% increase year-over-year.
• Insider activity in the six months leading up to the latest reports showed 19 purchases and 0 sales.
• The stock price was reported at $31.60 as of December 4, 2025.
• The net loss attributable to InterGroup for FY2025 was $(5,348,000).

The company defintely focuses on building shareholder value through operational improvements.

Contractual Relationships with Commercial Tenants

Contractual relationships exist with commercial tenants, which are bundled into the Real Estate Operations segment. This includes the management of one commercial building owned by The InterGroup Corporation. These are typically longer-term leases providing predictable income streams, supporting the segment income of $8,465,000 for FY2025.

The overall real estate portfolio, which includes residential, commercial, and land holdings, is managed under a structure that also includes an Executive Strategic Real Estate and Securities Investment Committee.

The InterGroup Corporation (INTG) - Canvas Business Model: Channels

You're looking at how The InterGroup Corporation (INTG) gets its value propositions to its customers and stakeholders as of late 2025. It's a mix of direct operations and public market visibility.

Direct hotel booking systems and third-party online travel agencies (OTAs)

The performance of the hospitality channel is directly reflected in the Hotel Operations segment income. For the fiscal year ended June 30, 2025, this segment generated income of $8,732,000. This represents a year-over-year increase of 51.9% compared to the prior year's segment income of $5,747,000. This operation centers around the Hilton San Francisco Financial District, which has 544 guest rooms and suites. This property benefited from a comprehensive renovation that wrapped up in June 2024, allowing for full room availability in the 2025 fiscal year.

On-site property management and leasing offices for real estate

The Real Estate Operations channel drives income through direct management and leasing activities. For fiscal year 2025, the segment income was $8,465,000, an improvement of 31.9% over the $6,418,000 reported in the previous year. The portfolio managed through this channel includes:

• 16 apartment complexes.
• One commercial real estate property.
• Three single-family houses as strategic investments.

Capital investment channeled into this segment for property upgrades was $1,739,000 for FY2025, down from $2,309,000 in FY2024.

NASDAQ Capital Market for equity investors

The NASDAQ Capital Market serves as the primary channel for attracting and communicating with equity investors. The InterGroup Corporation regained compliance with Nasdaq listing requirements following its fiscal year 2025 reporting. The company's total liquidity, which is key for investor confidence, rose to $15,195,000 in cash and equivalents as of June 30, 2025, marking a 74.8% increase year-over-year from $8,694,000 at June 30, 2024. The Investment Transactions segment, however, showed a greater loss of $(2,502,000) for FY2025, compared to $(1,633,000) in FY2024.

Here's a quick look at the segment performance driving investor interest:

Corporate website and investor relations for financial reporting

The corporate website, intgla.com, is the official conduit for financial reporting and investor communications. The company released its Fiscal Year 2025 results on October 9, 2025, detailing a net loss of $7.5 million, which was an improvement from the $12.6 million net loss in FY2024. Consolidated EBITDA for the year reached $13.2 million, up 131.7% year-over-year. The total revenue for 2025 was reported as $64.38 million, a 10.73% increase from the prior year's $58.14 million. Furthermore, the latest quarterly report, for the three months ended September 30, 2025 (Q1 FY2026), was issued on November 17, 2025. The company's overall losses for 2025 were reported at -$5.35 million, representing a 45.41% reduction compared to 2024.

Key reporting milestones for 2025 included:

• FY2025 Results Release: October 9, 2025.
• Q3 2025 Earnings Call: October 23, 2025.
• Q1 FY2026 Results Release: November 17, 2025.

Finance: draft 13-week cash view by Friday.

The InterGroup Corporation (INTG) - Canvas Business Model: Customer Segments

You're looking at the customer groups The InterGroup Corporation (INTG) serves across its diversified operations as of its Fiscal Year 2025 results, which concluded on June 30, 2025. Here's the breakdown of the distinct groups they target with their assets.

Business and convention travelers in San Francisco

This segment is primarily served through the company's investment in the Hilton San Francisco Financial District, a 558-room hotel property. The performance for this customer group, categorized under Hotel Operations, showed strong recovery post-renovation completion in June 2024.

• FY2025 Hotel Occupancy: 92%
• FY2025 Average Daily Rate (ADR): $218
• FY2025 Revenue Per Available Room (RevPAR): $200
• FY2025 Hotel Revenues: $46,363,000

Residential tenants in Texas and Southern California multifamily markets

These tenants occupy the bulk of The InterGroup Corporation (INTG)'s owned real estate, which concentrates on multifamily properties in Texas and Southern California. This group, along with commercial tenants, falls under the Real Estate Operations segment.

• Total Apartment Complexes Owned: 16
• Real Estate Operations Segment Income (FY2025): $8,465,000
• Year-over-Year Segment Income Growth (FY2025): +31.9%

Public equity investors seeking a diversified holding company

These are the shareholders of The InterGroup Corporation (INTG), which trades on the NASDAQ Capital Market under the symbol INTG. They are interested in the combined performance of the real estate, hotel, and investment transaction segments.

Here's a look at the consolidated financial metrics relevant to this segment as of the end of FY2025:

Commercial tenants for the single commercial property

This group rents space in the company's sole commercial real estate property, which is part of the larger Real Estate Operations segment. Specific revenue for this single asset is not separately reported but contributes to the overall segment income.

• Number of Single Commercial Properties Owned: 1
• Real Estate Operations Segment Income (FY2025): $8,465,000

Finance: draft 13-week cash view by Friday.

The InterGroup Corporation (INTG) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving The InterGroup Corporation (INTG)'s operations for the fiscal year ending June 30, 2025. Honestly, the debt load is the first thing that jumps out at any analyst reviewing these figures.

Substantial interest expense on mortgage debt is a major fixed cost. For the full fiscal year 2025, the consolidated GAAP interest expense on mortgage debt was reported at ~$10.68 million. This figure heavily influences the bottom line, even as operating segments improve.

The primary variable and fixed costs are tied directly to the two main operating segments: Hotel Operations and Real Estate Operations. Here's a breakdown of the known operating costs for FY2025:

Property operating expenses for the Real Estate Operations segment are embedded within the segment results. While the segment generated an operating income of $8,465,000 for FY2025, the specific breakdown for utilities, maintenance, and staffing costs that make up the property operating expenses isn't explicitly detailed in the latest summaries, though they are certainly substantial given the revenue base.

For Hotel operating expenses, we have a clearer view, which includes labor and brand fees, among other things. Total hotel operating expenses for FY2025 reached $37,631,000, against hotel revenues of $46,363,000. That's a significant portion of the top line dedicated just to running the hotel.

Regarding General and administrative (G&A) costs, these are typically captured in the Corporate segment, which historically includes these overheads. For FY2025, the Investing Transactions segment recorded a loss of $(2,502,000), and while G&A is a component of the overall corporate structure, a precise, standalone G&A figure for the fiscal year 2025 isn't directly available in the recent reports, though it is a necessary cost of running the holding company.

You can see the capital expenditure side of costs, which are investments in the asset base, were also notable:

• Hotel capex was $2,252,000 in FY2025.
• Real estate capex was $1,739,000 in FY2025.

Finance: draft 13-week cash view by Friday.

The InterGroup Corporation (INTG) - Canvas Business Model: Revenue Streams

You're looking at how The InterGroup Corporation (INTG) actually brought in the money in fiscal year 2025. It's a mix, as you'd expect from a diversified operator, heavily leaning on its core hospitality and property assets. Honestly, the performance in the main operating segments showed real traction this past year.

Here's the quick math on the key revenue-related figures for the fiscal year ended June 30, 2025:

The Hotel Operations revenue hit $46,363,000 in FY2025, a nice jump from $41,886,000 the year prior. That improvement is definitely tied to the Hilton San Francisco Financial District getting back to full strength after that big renovation wrap-up in June 2024. You can see the operational metrics supporting that revenue growth:

• Hotel Operations segment income reached $8,732,000.
• Occupancy rate for the hotel was 92%.
• Average Daily Rate (ADR) settled at $218.
• Revenue Per Available Room (RevPAR) was $200.

For the Real Estate Operations, while we don't have the specific rental and recovery income breakdown, the segment income itself was $8,465,000, up significantly from $6,418,000 in FY2024. This segment manages their 16 apartment complexes, one commercial property, and three single-family houses, plus that investment in unimproved property in Hawaii. The focus here is on consistent cash flow from property management and leasing activities.

The Investment Transactions stream, however, was a drag on the overall results. You see a segment loss of $(2,502,000) for FY2025, which was a wider loss than the $(1,633,000) reported in the previous year. This area covers their equity and debt securities investing, so market volatility definitely played a role here. It's a reminder that not every stream flows smoothly.

To give you a fuller picture of the financial health underpinning these streams, look at the balance sheet improvements:

• Cash and equivalents stood at $15,195,000 as of June 30, 2025.
• This cash position represented a 74.8% increase year-over-year from $8,694,000.
• The company also managed to reduce its consolidated net loss to $(7,547,000) from $(12,556,000) in FY2024.

Finance: draft 13-week cash view by Friday.