NOTE 9 – OTHER FINANCING TRANSACTIONS

The following summarizes the balances of other notes payable as of June 30, 2026 and 2025, respectively.

 SUMMARY OF OTHER NOTES PAYABLE

Hilton Development Incentive Note

The note payable to Hilton represents an interest-free development incentive note that is reduced by approximately $317,000 annually through 2030, subject to the Hotel remaining a Hilton franchisee. The outstanding balance was $1,267,000 and $1,583,000 as of June 30, 2026 and 2025, respectively.

Aimbridge Key Money

Operating received a $2,000,000 key-money contribution from Aimbridge under the Hotel management arrangement. The contribution is amortized in equal monthly amounts over an eight-year period beginning on the second anniversary of Aimbridge’s commencement of management services and is recognized as a reduction of Hotel operating expenses. The unamortized balance was $146,000 and $396,000 as of June 30, 2026 and 2025, respectively, and is included in other notes payable in the consolidated balance sheets. See Note 11 – Management Agreements.

Contractual Maturities and Scheduled Reductions

Contractual maturities and scheduled reductions of other notes payable as of June 30, 2026 were as follows:

 SUMMARY OF CONTRACTUAL MATURITIES AND SCHEDULED REDUCTIONS OF OTHER NOTES PAYABLE