Portsmouth Square, Inc. Reports Q1 FY2026 Results; Hotel KPIs Up, Continued Stabilization in San Francisco, and ~$10.1 Million in Cash & Restricted Cash

Core Insights - Portsmouth Square, Inc. reported a net loss of $2,585,000 for the three months ended September 30, 2025, compared to a loss of $1,872,000 in the same period last year, indicating a deterioration in financial performance [7] - The company experienced a 5.1% year-over-year increase in hotel revenue, totaling $12,418,000, driven by growth in various revenue categories [7] - Management expressed optimism about the stabilization of the San Francisco hospitality market, citing improvements in convention calendars, tourism indicators, and business travel activity [5] Financial Performance - Hotel operating income before interest, depreciation, and amortization (OIBDA) decreased by 36.0% year-over-year to $1,937,000 [7] - Average Daily Rate (ADR) increased by 3.8% to $218, while Revenue per Available Room (RevPAR) rose by 2.5% to $207; occupancy rates remained steady at 95% [7][11] - Operating expenses, excluding depreciation and amortization, rose by 19.2% to $10,481,000, contributing to the net loss [7] Management Commentary - The CEO noted encouraging signs of market stabilization and emphasized the company's focus on rate discipline and targeted cost controls as demand normalizes in San Francisco [5] - The President highlighted the quarter's performance as a reflection of stabilization, with revenue growth and a focus on merchandising into the convention and group calendar [5] Company Overview - Portsmouth Square, Inc. owns the Hilton San Francisco Financial District, which features 558 rooms and extensive meeting space, and operates under a franchise license with Hilton [13]