Portsmouth Square Inc
Business Description
Portsmouths main business is Justice, which it owns in both general and limited partnership. Portsmouth owns about 99.3 percent of Justices voting stock and is the companys sole general partner.
With an effective takeover date of February 3, 2017, Justice entered into a Hotel management agreement ("HMA") with Interstate Management Company, LLC ("Interstate") to operate the Hotel and its five-level parking garage. The management agreement has a ten-year duration that begins on the takeover date and automatically renews for subsequent one-year intervals, up to a maximum of five years in total, subject to specific criteria. The base management fee due to Interstate under the HMA is one and seven-tenths of one percent (1.70 percent) of total Hotel income.
The Partnership entered into a Franchise License Agreement (the ?License Agreement?) with the HLT Existing Franchise Holding LLC (?Hilton?) on December 10, 2004. The term of the License Agreement was for an initial period of fifteen years commencing on the date the Hotel began operating as a Hilton hotel, with an option to extend the License Agreement for another five years, subject to certain conditions. On June 26, 2015, Operating and Hilton entered into an amended franchise agreement that, among other things, extended the License Agreement through 2030, and provided the Partnership with certain key money cash incentives to be earned through 2030.
On February 1, 2017, Justice entered into a Hotel management agreement with Interstate Management Company, LLC to manage the Hotel with an effective takeover date of February 3, 2017. The term of the management agreement is for an initial period of ten years commencing on the takeover date and automatically renews for successive one (1) year periods, not to exceed five years in the aggregate, subject to certain conditions. Under the terms on the HMA, base management fee payable to Interstate shall be one and seven-tenths (1.70%) of total Hotel revenue. On October 25, 2019, Interstate merged with Aimbridge Hospitality, North America?s largest independent hotel management firm.
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