Core Insights - The InterGroup Corporation reported significant improvements in its hotel operations and stable performance in its real estate portfolio for the quarter ended December 31, 2025 [1] - The company completed the sale of a non-core 12-unit multifamily property in Los Angeles County, enhancing liquidity and providing additional working capital [1] Quarterly Highlights - Total revenues increased to $17.3 million from $14.4 million, a rise of $2.9 million (+20%) [10] - Hotel revenues rose to $12.6 million from $9.9 million, an increase of $2.7 million (+27%) [10] - Real estate revenues increased to $4.6 million from $4.5 million, a growth of $0.2 million (+4%) [10] - Income from operations increased to $2.0 million from $0.9 million [10] - Net income was $1.0 million compared to a net loss of $3.7 million [10] Segment Performance - Hotel Operations income increased to $2,234,000 in 2025 from $910,000 in 2024 [3] - Real Estate Operations income was $2,221,000 in 2025 compared to $2,268,000 in 2024 [3] - Investment Transactions reported a loss of $340,000 in 2025, improved from a loss of $901,000 in 2024 [3] Hotel Operating Metrics - Average Daily Rate (ADR) for the Hilton San Francisco Financial District was $234 in 2025, up from $190 in 2024 [4] - Occupancy rate improved to 92% in 2025 from 88% in 2024 [4] - Revenue per Available Room (RevPAR) increased to $215 in 2025 from $168 in 2024 [4] Disposition of Non-Core Property - The sale of the non-core multifamily property was completed for approximately $4.85 million, with net cash proceeds of about $2.58 million after closing costs [5] - The company recognized a GAAP gain on the sale of approximately $3.51 million in the quarter [5] Liquidity and Capital Resources - As of December 31, 2025, the company had cash and cash equivalents of $6.6 million and restricted cash of $8.4 million, totaling $15.0 million [7] - Marketable securities measured at fair value were $0.9 million [7] Management Commentary - The company noted continued progress in hotel and real estate operations, with revenue growth driven by higher room demand and the return of renovated guest rooms to inventory [11] - The management expressed cautious optimism regarding the stabilization and recovery of operating conditions in San Francisco [12]

Core Viewpoint - Billionaire investor Bill Ackman and his team are focusing on the "Magnificent Seven" companies, particularly highlighting their investment in Meta Platforms, while exiting their position in Hilton Hotels due to valuation concerns [3][8][10]. Group 1: Investment Decisions - Pershing Square Capital Management sold its stake in Hilton Hotels after a long-term investment, citing that prospective returns no longer met their high return threshold [3][8]. - The investment in Hilton resulted in a 70% increase in fee revenue and a 150% increase in earnings per share during the holding period [5][7]. - Pershing Square has taken a new position in Meta Platforms, investing approximately $2 billion, which represents 10% of its capital [9][10]. Group 2: Company Performance - Hilton's stock valuation increased from 20 times earnings to approximately 32 times during Pershing's investment, currently trading at around 36 times forward earnings [7]. - Meta Platforms is viewed as a significant beneficiary of artificial intelligence, with expectations of substantial earnings growth following increased capital expenditures [10][14]. - Meta's stock surged after its earnings report, which projected capital expenditures of $115 billion to $135 billion for 2026 [10]. Group 3: Market Trends - Investor concerns regarding high AI-related capital expenditures are seen as overshadowing the long-term potential of companies like Meta [10][14]. - The market is shifting from a broad investment strategy in AI to a more selective approach, focusing on identifying winners and losers in the AI space [15].

Group 1 - Reverend Jesse Jackson, a civil rights icon and two-time Democratic presidential candidate, passed away at the age of 84, leaving behind a legacy of fighting for justice and equality [2][3][4] - Jackson was a key figure in the civil rights movement, known for his work with the Southern Christian Leadership Conference and the Rainbow PUSH coalition [3] - His family emphasized his role as a servant leader and encouraged others to continue advocating for the values he represented [4] Group 2 - Thomas Pritzker, executive chairman of Hyatt Hotels Corp., resigned due to his ties with Jeffrey Epstein, expressing regret over his relationship and acknowledging poor judgment [5][6] - Pritzker's resignation adds to a growing list of business and political leaders stepping down as more details about Epstein's dealings emerge [6] Group 3 - An artificial intelligence summit is taking place in India, featuring prominent tech leaders such as OpenAI's Sam Altman and Alphabet's Sundar Pichai, while Nvidia's Jensen Huang has withdrawn [8] - OpenAI announced the addition of Peter Steinberger, creator of the AI agent OpenClaw, amid increasing competition in the generative AI sector, with Anthropic reporting an 11% growth in daily active users following a recent ad campaign [8] Group 4 - Apple is set to launch an integrated video podcasting experience in the spring, enhancing its offerings to compete with platforms like Spotify and YouTube [10][11] - Snap is introducing creator subscriptions, allowing content creators to earn income directly from followers through paid memberships, similar to models used by Patreon and Substack [12]

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Economic Overview - The UK unemployment rate has risen to 5.2%, the highest level in nearly five years, indicating a potential upward trend in joblessness [14] - Average weekly earnings growth has decreased to 4.2%, down from 4.6% in November, which is below market expectations [14] - The jobs market is showing signs of distress, with private sector wages not keeping pace with inflation for the first time in two and a half years [1][2] Labor Market Insights - The single month jobless rate is currently at 5.4%, with expectations that it could climb higher as redundancies are anticipated [2] - The number of payrolled employees fell by 11,000 month-to-month in January, following a drop of 6,000 in December, which was better than the consensus forecast of a 20,000 decline [15] - Youth unemployment has reached a new high of 16.1%, highlighting ongoing challenges in the labor market [3] Company Performance - Antofagasta reported a 53% increase in pre-tax profits, with earnings per share more than doubling, driven by higher copper prices and disciplined cost control [3] - The final dividend declared by Antofagasta was 48 cents, lower than the consensus estimate of 56.5 cents, while revenue of $8.6 billion was in line with forecasts [4] - InterContinental Hotels announced a 10% increase in its dividend and a $950 million share buyback following a year of record hotel openings [9] Market Reactions - The FTSE 100 opened higher, gaining 39 points, with companies previously affected by the 'AI scare trade' leading the way [7] - Miners, including Antofagasta and Fresnillo, were among the main fallers as copper and precious metals prices declined [8] - The pound has weakened by 0.5% against the dollar, influenced by rising unemployment and softer wage growth, which have increased the likelihood of a Bank of England rate cut [12]

The CNBC app, global market news in one place. Customizable sections and personalized alerts, stocks tracking, interactive charts and market insights, all in your hands. Stay connected, stay informed, download the CNBC app today.Uh, >> a very warm welcome to this Tuesday edition of Squawk Europe European. I'm Steve Sedick with Ben Bulos. Risk Gup will join us as well.Okay, these are your headlines. European equity futures point lower as Wall Street comes back online after the President's Day holiday with th ...

Financial Performance and Key Metrics - The company reported a 1.5% growth in RevPAR, driven by rate and occupancy gains, reflecting a strong global footprint and diversified demand drivers [3][4] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - The fee margin increased by 360 basis points to 64.8%, contributing to a 13% increase in EBIT and a 16% growth in adjusted EPS [4][8][19] - Adjusted Free Cash Flow rose to $893 million, a year-on-year increase of $238 million, with Free Cash Conversion at 115% of adjusted earnings [20] Business Line Performance - Revenue from the fee business was $2.5 billion, with EBIT growing 7% and 13% respectively [8] - The Americas RevPAR grew 0.3% for the year, while EMEA RevPAR increased by 4.6% [10][11] - In Greater China, RevPAR declined by 1.6%, with a notable recovery in Q4 [11][12] Market Performance - The U.S. market saw a gross opening of 156 hotels, with a pipeline of 233 hotels, indicating strong owner confidence [41] - In EMEA, particularly Germany, the company doubled its presence to 190 hotels and signed 25 more into the pipeline [43] - The company celebrated its 50th anniversary in Greater China, reaching 882 open hotels and a pipeline of 582 hotels [42] Company Strategy and Industry Competition - The company launched a new premium collection brand, Noted Collection, and acquired Ruby to strengthen its portfolio in the premium segment [5][30] - The brand portfolio has expanded from 10 to 21 brands over the past decade, capturing a wider customer mix and enhancing loyalty program value [29] - The company aims to achieve fee revenue growth of high single digits while controlling overhead growth to a low single-digit increase per year [19] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting 12%-15% adjusted EPS growth as a compound annual growth rate [60] - The company highlighted the strength of its business model and the resilience demonstrated despite turbulent trading conditions [5][59] - Management noted that the overall margin achievement in 2025 was unusually strong, driven by ancillary fee streams and cost actions [19] Other Important Information - The company announced a new $950 million share buyback program, expected to return over $1.2 billion to shareholders in 2026 [4][27] - The loyalty program, IHG One Rewards, grew to over 160 million members, with loyalty penetration now at approximately 66% of all room nights booked [54][55] - The company is leveraging AI and technology to enhance guest experiences and operational efficiencies [49][51] Q&A Session Summary Question: What are the growth prospects for the new Noted Collection brand? - The company expects Noted Collection to scale rapidly, with initial discussions already underway with multiple owners [36] Question: How is the company managing costs in the current environment? - The company has maintained a disciplined approach to cost management, achieving sustainable savings through process redesign and technology [15][19] Question: What is the outlook for the Greater China market? - Management remains confident in the long-term structural growth drivers in Greater China, with a significant under-penetration of hotels per capita [42]

Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, driven by rate and occupancy gains, reflecting the breadth of the global footprint and diversification of demand drivers [3] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - Adjusted EPS grew by 16%, supported by a $900 million share buyback program [5][9] - Total revenue was $2.5 billion, with EBIT growing by 13% to $1.265 billion [8] Business Line Data and Key Metrics Changes - Fee business revenue and operating profit both increased by 7% and 13% respectively, with fee margin increasing by 360 basis points to 64.8% [8][16] - The company opened a record 443 hotels, adding over 65,000 rooms to the system, with a 10% year-on-year increase in openings [13][29] - The new premium collection brand, Noted Collection, was launched to strengthen the portfolio in the premium segment [5][29] Market Data and Key Metrics Changes - In the Americas, RevPAR grew by 0.3%, with a slight decline in occupancy [10] - EMEA RevPAR grew by 4.6%, with occupancy up 1.6 percentage points and rate up 2.4% [11] - Greater China saw a RevPAR decline of 1.6%, with occupancy slightly up and rate down [11] Company Strategy and Development Direction - The company aims to expand its brand portfolio, having doubled it from 10 to 20 brands over the past decade, with a focus on capturing more guests at various price points [29] - The strategy includes leveraging technology and AI to enhance operational efficiency and guest experience [46][49] - The company is focused on expanding in key growth markets, particularly in the U.S., Europe, and China, with significant growth potential in emerging markets [39][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting high single-digit fee revenue growth and 100-150 basis points of margin expansion annually [6][60] - The company anticipates strong cash flow conversion and sustainable dividend growth, with a commitment to returning capital to shareholders [19][60] Other Important Information - The company plans to return over $1.2 billion to shareholders in 2026 through share buybacks and dividend payments [4][27] - Adjusted free cash flow was $893 million, representing a year-on-year increase of $238 million [19] Q&A Session Summary Question: What are the expectations for future growth in the U.S. market? - Management noted that development momentum in the U.S. continued to pick up, with gross openings growing 11% year-on-year and strong owner confidence in the brand [41] Question: How is the company leveraging technology for operational efficiency? - The company is implementing a new Revenue Management System and enhancing its Guest Reservation System to optimize operations and improve revenue performance for hotel owners [46][48]

Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, driven by rate and occupancy gains, reflecting the breadth of the global footprint and diversification of demand drivers [3][4] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - Adjusted EPS grew by 16%, supported by a $900 million share buyback program [9][54] - Total revenue was $2.5 billion, with EBIT growing by 13% to $1.265 billion [7][54] Business Line Data and Key Metrics Changes - Fee business revenue and operating profit both increased by 7% and 13% respectively, with fee margin increasing by 360 basis points to 64.8% [7][8] - The company opened a record 443 hotels, taking the total estate to over 6,900 hotels and more than 1 million rooms [3][4] - The pipeline now stands at almost 2,300 hotels, representing 33% future rooms growth [4] Market Data and Key Metrics Changes - In the Americas, RevPAR grew by 0.3%, with a slight decline in occupancy [10] - Outside the U.S., RevPAR grew by 4%, with notable growth in Canada, Mexico, and the Latin America and Caribbean sub-region [10] - In EMEA, RevPAR grew by 4.6%, with occupancy up 1.6 percentage points and rate up 2.4% [11] - Greater China saw a RevPAR decline of 1.6%, with occupancy slightly up [11] Company Strategy and Development Direction - The company launched a new premium collection brand, Noted Collection, to strengthen its portfolio in the premium segment [5][27] - The brand portfolio has doubled from 10 to 20 brands over the past decade, capturing more guests at various price points [27] - The company aims to expand fee margin by 100-150 basis points annually while controlling overhead growth to a low single-digit increase [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting high single-digit fee revenue growth and sustainable dividend growth [54][55] - The company remains well-positioned to capture guests in various markets, with a pipeline of hotels in fast-growing economies [36][42] - Management highlighted the strength of the loyalty program, with membership growing to over 160 million, driving increased revenue [49][50] Other Important Information - The company returned over $1.1 billion to shareholders, with a proposed 10% increase in total dividends [5][25] - Adjusted free cash flow was $893 million, representing a year-on-year increase of $238 million [18] - The company is leveraging technology, including AI, to enhance operational efficiency and guest experience [43][45] Q&A Session Summary Question: What are the growth prospects for the new Noted Collection brand? - Management expects Noted Collection to scale rapidly, with initial discussions already underway with multiple owners [33] Question: How is the company managing costs in the current environment? - The company has maintained a disciplined approach to cost management, achieving sustainable savings through process redesign and technology [15][18] Question: What is the outlook for the Greater China market? - Management remains confident in the long-term growth drivers in Greater China, with significant under-penetration of hotels per capita [39][42]

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