Portsmouth Square, Inc. Reports Second Quarter Fiscal 2026 Results; Hotel Performance Improves Year-Over-Year as Market Stabilization Continues

Core Insights - Portsmouth Square, Inc. reported financial results for the fiscal second quarter ended December 31, 2025, highlighting improvements in hotel performance despite ongoing challenges in the San Francisco lodging market [1][5]. Financial Performance - Hotel revenues for Q2 2026 reached $12.661 million, an increase from $9.965 million in the prior-year quarter, reflecting a year-over-year growth [6]. - The net loss for Q2 2026 was $2.291 million, or $3.12 per share, compared to a net loss of $4.036 million, or $5.50 per share, in the same quarter last year, indicating a reduction in losses [6]. - Income from operations was $1.004 million, a significant improvement from a loss of $0.264 million in the prior-year quarter [6]. - Average Daily Rate (ADR) increased to $234 from $190, with average occupancy rising to 92% from 88%, and Revenue Per Available Room (RevPAR) improved to $215 from $168 [6]. Year-to-Date Highlights - For the six months ended December 31, 2025, hotel revenues totaled $25.079 million, up from $21.785 million in the prior-year period [6]. - The net loss for the six-month period was $4.876 million, or $6.64 per share, compared to a net loss of $5.908 million, or $8.05 per share, in the previous year [6]. - Income from operations for the six months was $1.801 million, compared to $1.506 million in the prior-year period [6]. - ADR for the six-month period was $226, up from $200, with average occupancy at 94% compared to 92%, and RevPAR at $211 versus $184 [6]. Capital Expenditures - Capital expenditures for the six months ended December 31, 2025, were approximately $1.431 million, primarily for guest-room renovations and returning 14 rooms to available inventory [6]. Management Commentary - The President of Portsmouth noted that the company benefited from higher room revenues due to increased room availability and improved rate and occupancy dynamics, with 14 additional guestrooms returned to service in September 2025 [5]. - The CEO expressed cautious optimism regarding the gradual recovery of the San Francisco market, highlighting ongoing efforts to enhance the city's appeal for business and leisure travel [6].