OTC: PRSI
PORTSMOUTH SQUARE INCCIK 0000079661 · SIC 6552 · Land Subdividers & Developers
Portsmouth Square, Inc. (“Portsmouth,” the “Company,” “we,” “us,” or “our”) is a California corporation incorporated on July 6, 1967. As of June 30, 2026, approximately 75.9% of the Company’s outstanding common stock was owned by The InterGroup Corporation (“InterGroup”), a publicly traded company… About this business →
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Latest financial statements
From 10-K filed Sep 28, 2026 (period ending Jun 30, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Consolidated Statements of Operations
| Description | Years ended June 30, 2026 | Years ended June 30, 2025 |
|---|---|---|
| Hotel revenue | 55,797,000 | 46,363,000 |
| Costs and operating expenses | ||
| Hotel operating expenses | (43,273,000) | (37,631,000) |
| Hotel depreciation and amortization expense | (3,640,000) | (3,534,000) |
| General and administrative expense | (1,095,000) | (1,327,000) |
| Total costs and operating expenses | (48,008,000) | (42,492,000) |
| Income from operations | 7,789,000 | 3,871,000 |
| Other income (expense) | ||
| Interest expense mortgage and mezzanine | (9,686,000) | (10,680,000) |
| Interest expense related party | (3,437,000) | (3,570,000) |
| Net realized loss on marketable securities | - | (10,000) |
| Net unrealized gain on marketable securities | 73,000 | 13,000 |
| Gain on extinguishment of debt | - | 1,416,000 |
| Dividend and interest income | - | 10,000 |
| Trading and margin interest expense | (152,000) | (159,000) |
| Total other expense, net | (13,202,000) | (12,980,000) |
| Loss before income taxes | (5,413,000) | (9,109,000) |
| Income tax expense | (1,000) | (1,000) |
| Net loss | (5,414,000) | (9,110,000) |
| Basic and diluted net loss per share | (7.37) | (12.41) |
| Weighted average number of common shares outstanding basic and diluted | 734,187 | 734,187 |
Consolidated Balance Sheets
| Description | June 30, 2026 | June 30, 2025 |
|---|---|---|
| ASSETS | ||
| Investment in Hotel, net | 32,342,000 | 33,783,000 |
| Investment in marketable securities | 200,000 | 127,000 |
| Cash and cash equivalents | 4,982,000 | 4,470,000 |
| Restricted cash | 8,440,000 | 7,252,000 |
| Accounts receivable Hotel, net | 250,000 | 397,000 |
| Other assets | 721,000 | 891,000 |
| Total assets | 46,935,000 | 46,920,000 |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||
| Liabilities: | ||
| Accounts payable and other liabilities Hotel | 13,001,000 | 12,671,000 |
| Accounts payable and other liabilities | 112,000 | 129,000 |
| Accounts payable to related party | 21,300,000 | 16,634,000 |
| Related party notes payable | 38,108,000 | 38,108,000 |
| Other notes payable | 1,413,000 | 1,979,000 |
| Mortgage and mezzanine notes payable Hotel, net | 102,535,000 | 101,519,000 |
| Total liabilities | 176,469,000 | 171,040,000 |
| Commitments and Contingencies - Note 14 | ||
| Shareholders’ deficit: | ||
| Common stock, no par value: Authorized shares 750,000; 734,187 shares issued and outstanding as of June 30, 2026 and 2025, respectively | 2,092,000 | 2,092,000 |
| Accumulated deficit | (131,626,000) | (126,212,000) |
| Total shareholders’ deficit | (129,534,000) | (124,120,000) |
| Total liabilities and shareholders’ deficit | 46,935,000 | 46,920,000 |
Consolidated Statements of Cash Flows
| Description | Years ended June 30, 2026 | Years ended June 30, 2025 |
|---|---|---|
| Cash flows from operating activities: | ||
| Net loss | (5,414,000) | (9,110,000) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
| Net unrealized gain on marketable securities | (73,000) | (13,000) |
| Amortization of other notes payable | (566,000) | (409,000) |
| Gain on extinguishment of debt | - | (1,416,000) |
| Depreciation and amortization | 3,640,000 | 3,534,000 |
| Amortization of debt issuance costs | 1,016,000 | 1,004,000 |
| Changes in operating assets and liabilities: | ||
| Investment in marketable securities | - | 95,000 |
| Accounts receivable Hotel, net | 147,000 | 122,000 |
| Other assets | 171,000 | (57,000) |
| Accounts payable and other liabilities Hotel | 330,000 | 331,000 |
| Accounts payable and other liabilities | (18,000) | (1,348,000) |
| Accounts payable to related party | 4,666,000 | 5,119,000 |
| Net cash provided by (used in) operating activities | 3,899,000 | (2,148,000) |
| Cash flows from investing activities: | ||
| Payments for hotel furniture, equipment and building improvements | (2,199,000) | (2,252,000) |
| Net cash used in investing activities | (2,199,000) | (2,252,000) |
| Cash flows from financing activities: | ||
| Issuance costs from refinance | - | (2,106,000) |
| Proceeds from mortgage and mezzanine notes payable | - | 78,800,000 |
| Proceeds from related party note payable | - | 11,615,000 |
| Payments of mortgage and finance leases | - | (76,962,000) |
| Net cash provided by financing activities | - | 11,347,000 |
| Net increase in cash, cash equivalents, and restricted cash | 1,700,000 | 6,947,000 |
| Cash, cash equivalents, and restricted cash at the beginning of the period | 11,722,000 | 4,775,000 |
| Cash, cash equivalents, and restricted cash at the end of the period | 13,422,000 | 11,722,000 |
| Supplemental information: | ||
| Interest paid | 5,909,000 | 8,519,000 |
| Income taxes paid | - | 31,000 |
Amounts as printed on the EDGAR/iXBRL face. Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
About PORTSMOUTH SQUARE INC
Source: Item 1 (Business) from the 10-K filed September 28, 2026. Description as filed by the company with the SEC.
Item
1. Business.
GENERAL
Portsmouth
Square, Inc. (“Portsmouth,” the “Company,” “we,” “us,” or “our”) is a California
corporation incorporated on July 6, 1967. As of June 30, 2026, approximately 75.9% of the Company’s outstanding common stock was
owned by The InterGroup Corporation (“InterGroup”), a publicly traded company listed on the Nasdaq Capital Market under the
symbol “INTG.” InterGroup is the Company’s controlling shareholder. See Item 1A – Risk Factors and Item 12 –
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The
Company’s principal business is the ownership and operation of the Hilton San Francisco Financial District, a full-service hotel
located at 750 Kearny Street in San Francisco, California (the “Hotel”). Effective September 30, 2025, the Hotel’s
available room inventory increased from 544 to 558 rooms following the conversion of 14 former administrative office spaces into guestrooms.
The
Hotel generates revenues principally from guest rooms, food and beverage operations, parking and other Hotel operations and serves business,
convention, group and leisure travelers.
The
Hotel is operated through the Company’s wholly owned subsidiary structure. Justice Operating Company, LLC (“Operating”)
owns the Hotel, Justice Pledgor, LLC (“Pledgor”) is the sole member of Operating, and Justice Mezzanine Company, LLC (“Mezzanine”)
is the sole member of Pledgor.
HILTON
FRANCHISE AGREEMENT
Operating
is party to a franchise agreement with HLT Franchise Holding, LLC (“Hilton”) under which the Hotel operates as the Hilton
San Francisco Financial District. The franchise agreement extends through January 31, 2030.
Read full description ↓
The
License Agreement requires the Hotel to comply with applicable Hilton brand standards and capital improvement requirements. Failure to
comply with applicable requirements could result in penalties or termination of the franchise, as discussed in Item 1A – Risk Factors.
HOTEL
MANAGEMENT AGREEMENT
Operating
entered into a hotel management agreement (“HMA”) with Aimbridge Hospitality (“Aimbridge”) to manage the Hotel,
along with its five-level parking garage, effective February 3, 2017. The HMA has an initial ten-year term ending in February 2027 and
provides for up to five successive one-year renewal periods, subject to the terms of the agreement.
Under
the HMA, Aimbridge receives a base management fee equal to 1.70% of total Hotel revenue and may earn an incentive fee based on Hotel
operating performance, subject to the terms of the HMA. See Note 10 – Management Agreement to the Consolidated Financial Statements
and Item 1A – Risk Factors.
CHINESE
CULTURE FOUNDATION LEASE
The
Hotel is subject to a long-term lease with the Chinese Culture Foundation of San Francisco (the “Foundation”) covering the
third-floor Chinese Culture Center. The lease automatically extended for an additional 10-year term in October 2023 while the property
continues to operate as a hotel. Under the lease, the Foundation has the right to reserve the event space for up to 75 days per calendar
year, subject to specified conditions, and the Hotel may use reserved dates upon payment of a contractual fee.
4
MARKETABLE
SECURITIES INVESTMENT POLICIES
In
addition to its Hotel operations, the Company from time to time invests in marketable securities and other investment instruments.
The
Company’s securities investments are made under the supervision of an Executive Strategic Real Estate and Securities Investment
Committee of the Board of Directors (the “Committee”). The Committee has delegated authority to manage the portfolio to the
Company’s Chairman and Chief Executive Officer subject to investment guidelines established by the Committee.
See
Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations and Notes 5, 6 and 13 to the
Consolidated Financial Statements for additional information regarding the Company’s investment activities.
SEASONALITY
Historically,
the Hotel’s operation has been seasonal under normal circumstances. The Hotel generally experiences lower demand during the holiday
period from approximately Thanksgiving through early January. These seasonal patterns may cause fluctuations in the Hotel’s quarterly
revenues.
COMPETITION
The
Hotel operates in a highly competitive San Francisco lodging market and competes with full-service and other lodging properties for business,
convention, group and leisure travelers. Competition is based on factors including location, brand affiliation, room rates, property
condition, amenities, service levels and access to corporate, convention and leisure demand. The Hotel’s Financial District location,
Hilton affiliation and recently renovated guestrooms and public areas are important competitive factors.
GOVERNMENT
REGULATION AND ENVIRONMENTAL MATTERS
The
Hotel is subject to federal, state and local laws and regulations applicable to its operations, including laws and regulations relating
to employment and labor, food and beverage service, accessibility, health and safety, privacy, taxation and environmental matters. Changes
in applicable laws or regulations could increase the Company’s operating or capital costs.
The
Company’s operations are subject to various federal, state, and local environmental laws and regulations. Management is not aware
of any pending environmental matters or remediation obligations that are expected to have a material adverse effect on the Company’s
business, financial condition, results of operations, or cash flows. Compliance with existing environmental laws has not had, and is
not currently expected to have, a material effect on the Company’s capital expenditures, earnings or competitive position.
EMPLOYEES
As
of June 30, 2026, the Company and the Hotel had a total of 191 employees, of whom 152 were full-time. Of the 191 employees, four were
full-time corporate employees of Portsmouth and the remainder were Hotel employees.
As
of June 30, 2026, approximately 90% of the Hotel employees were represented by one of three labor unions and were covered by collective
bargaining agreements (“CBAs”). Aimbridge, as agent for Justice Operating Company, LLC (“Operating”), administers
the applicable CBAs, and Operating funds the related payroll, employee benefits and other labor costs.
5
The
CBA covering employees represented by Local 2 (Hotel and Restaurant Employees) expires on August 13, 2028. The CBA covering employees
represented by Local 856 (International Brotherhood of Teamsters) expires on December 31, 2028. The CBA covering employees represented
by Local 39 (Stationary Engineers) expires in July 2030.
The
terms of the CBAs affect the Hotel’s wages, employee benefits and other labor-related operating costs. See Item 1A – Risk
Factors.
ADDITIONAL
INFORMATION
The
Company files required annual and quarterly reports on Forms 10-K and 10-Q, current reports on Form 8-K and other information with the
Securities and Exchange Commission (“SEC” or the “Commission”). The SEC no longer operates a public reference
room. The Commission also maintains an Internet site at http://www.sec.gov that contains reports, proxy and information statements,
and other information regarding issuers that file electronically with the Commission.
Other
information about the Company can be found on our parent company’s website www.intgla.com. Reference in this document to that website
address does not constitute incorporation by reference of the information contained on the website. We make our annual reports on Form
10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports available free of charge on our website
as soon as reasonably practicable after such materials are filed with or furnished to the SEC.