The InterGroup Corporation
Moat Score — The InterGroup Corporation
Total Moat Score
3 / 30
| Moat Factor | Score | Analysis |
|---|---|---|
| Intangible Assets Patents, trademarks, brand strength, or regulatory licenses that protect a company's products or services from being freely copied by competitors. | 1 / 5 | InterGroup's main brand-related asset is its Hilton franchise agreement through January 2030, which is a licensed relationship rather than a proprietary intangible InterGroup itself created or controls. |
| Cost Advantage A durable ability to produce goods or services more cheaply than competitors — through scale, unique access to cheap inputs, location, or process — that lets a company undercut rivals or out-earn them at the same price. | 0 / 5 | InterGroup has no structural cost advantage; its single hotel and modest apartment portfolio are run at ordinary market costs, and its heavy debt load (senior mortgage plus mezzanine loan) actually adds a cost burden versus less-leveraged competitors. |
| Pricing Power The ability to raise prices without losing meaningful business, because the product or service is differentiated, mission-critical, or has few good substitutes. | 2 / 5 | The Hotel's post-renovation RevPAR of $214.66 versus its competitive set's $172.84 shows real near-term pricing strength in its San Francisco market, though this reflects a successful renovation cycle more than a durable structural advantage. |
| Network Effect The product or service becomes more valuable to every user as more people or organizations use it, making an established leader harder to displace. | 0 / 5 | Neither the single hotel, the apartment portfolio, nor the securities investments exhibit any network effect; each property's performance depends on its own local market dynamics. |
| Switching Costs The money, time, or operational disruption a customer would face switching to a competitor, which locks in existing customers and supports renewals. | 0 / 5 | Hotel guests and apartment tenants face essentially no switching costs and can readily choose a competing Northern California hotel or a different apartment community based on price, location, and condition. |
| Efficient Scale A market that can only profitably support a small number of players, so incumbents face limited threat from new entrants even without other defenses. | 0 / 5 | With a single hotel property and a 20-property real estate portfolio, InterGroup operates at a scale far too small to deter competition from larger, better-capitalized hotel owners and real estate operators in its San Francisco, Texas, and Los Angeles markets. |