v3.26.1
INVESTMENT IN HOTEL, NET
 9 Months Ended
Mar. 31, 2026
Investments, All Other Investments [Abstract]  
INVESTMENT IN HOTEL, NET

NOTE 4 – INVESTMENT IN HOTEL, NET

 

Investment in Hotel consisted of the following as of:

 

       Accumulated   Net Book 
March 31, 2026  Cost   Depreciation   Value 
             
Land  $1,124,000   $-   $1,124,000 
Finance lease ROU assets   1,805,000    (1,749,000)   56,000 
Furniture and equipment   41,065,000    (34,651,000)   6,414,000 
Building and improvements   62,054,000    (36,783,000)   25,271,000 
Investment in Hotel, net  $106,048,000   $(73,183,000)  $32,865,000 

 

       Accumulated   Net Book 
June 30, 2025  Cost   Depreciation   Value 
             
Land  $1,124,000   $-   $1,124,000 
Finance lease ROU assets   1,805,000    (1,665,000)   140,000 
Furniture and equipment   41,195,000    (33,248,000)   7,947,000 
Building and improvements   60,136,000    (35,564,000)   24,572,000 
Investment in Hotel, net  $104,260,000   $(70,477,000)  $33,783,000 

 

Finance lease right-of-use assets related to equipment are recorded at cost and amortized on a straight-line basis over the term. Furniture and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, which generally range from 3 to 7 years. Building and improvements are recorded at cost and depreciated on a straight-line basis over estimated useful lives ranging from 15 to 39 years. Construction-in-progress is not depreciated until the assets are placed in service.

 

 

Depreciation expense for the nine months ended March 31, 2026 and 2025 was $2,705,000 and $2,655,000, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations.

 

As discussed in Note 2 – Liquidity, the Company continued property enhancements during the nine months ended March 31, 2026, including the renovation of 14 guest rooms that were returned to available room inventory upon completion in September 2025.