InterGroup returns to profitability as hotel operations improve

• InterGroup reported fiscal 2026 GAAP net income of $336,000, reversing a prior-year loss.
• Revenue increased 15% to $73.95 million, driven by stronger hotel performance and higher operating income.
• Hotel revenue grew 20%, with higher average daily rates and occupancy supporting improved segment results.

InterGroup (NASDAQ:INTG) reported fiscal 2026 financial results, returning to GAAP profitability as improvements in its hotel operations contributed to stronger performance.

For the fiscal year, InterGroup generated revenue of $73.951 million, an increase of 15% from the prior year. Operating income rose 55% to $11.866 million.

The company reported GAAP net income of $336,000 for fiscal 2026, compared with a GAAP net loss of $7.547 million in fiscal 2025.

Hotel revenue increased 20% to $55.797 million.

Average daily rate (ADR) improved to $253 from $218, while occupancy increased to 95% from 92%.

Hotel segment income rose 43% to $12.524 million, reflecting improved operating performance.

The real estate segment also contributed positively, with segment income increasing 5% to $8.853 million.

The company’s Investment Transactions segment reported a smaller loss of $213,000, compared with a loss of $2.502 million in fiscal 2025.

InterGroup also recognized a $3.508 million GAAP gain from the sale of a property completed in December 2025.

Despite improved earnings, operating cash flow declined to $3.450 million from $5.893 million.

Elsewhere, InterGroup said the Portsmouth property’s $67 million mortgage and $36.3 million mezzanine loan are scheduled to mature on April 9, 2027.

Management expects to satisfy the requirements needed to obtain a one-year extension on the financing.