PORTSMOUTH SQUARE Business Summary

Portsmouth Square Inc. (PRSI) operates as a specialized hospitality and investment holding company, generating the vast majority of its revenue through the ownership and operation of the Hilton San Francisco Financial District hotel. The company’s business model is bifurcated into two primary segments: Hotel Operations, which derives income from room rentals, food and beverage services, and a five-level underground parking facility; and Investment Transactions, which manages a portfolio of marketable securities, corporate debt, and equity instruments. As of February 2026, the company has successfully navigated post-refinancing stabilization, reporting significant year-over-year improvements in key performance indicators, including an Average Daily Rate (ADR) of $234 and occupancy levels exceeding 90%. Within the competitive landscape, PRSI competes directly with hospitality-focused Real Estate Investment Trusts (REITs) such as Pebblebrook Hotel Trust, RLJ Lodging Trust, and Xenia Hotels & Resorts. Unlike these diversified peers, PRSI occupies a high-risk, high-reward niche as a micro-cap entity with extreme asset concentration in the San Francisco urban core, positioning it as a pure-play proxy for the city’s financial district recovery. The leadership team is characterized by a long-standing interlocking relationship with its parent organization, The InterGroup Corporation, which holds a 75.9% controlling interest. John V. Winfield serves as Chairman of the Board and Chief Executive Officer, bringing decades of experience in real estate and capital markets as the primary architect of the company’s strategic direction. He is supported by David C. Gonzalez, who serves as President and concurrently holds the role of Chief Operating Officer at InterGroup, and Ann Marie Blair, the Principal Financial Officer and Treasurer. The executive pedigree is rooted in disciplined expense management and complex debt restructuring, evidenced by the successful 2025 refinancing that alleviated previous going-concern uncertainties. The Board of Directors includes seasoned industry veterans such as William J. Nance and Steve Grunwald, following the January 2026 resignation of long-time director John C. Love. This lean management structure ensures tight operational alignment between PRSI’s single-asset hospitality focus and InterGroup’s broader investment objectives.