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COVID Briefs: U.S. flips to positive profit | Italian hotels attract foreign investors

U.S. flips to positive hotel profit as Europe backslides

The U.S. in October recorded a positive month of profitability since the start of the COVID-19 pandemic. The country finally reached gross operating profit per available room (GOPPAR) above US$0, but at US$5.43, it was still down 95.5% compared with the same time last year, according to data from HotStats. And though the U.S. climbed back into the black, Europe regressed, backsliding to minus €5.06 (minus US$6.05) after two consecutive positive months, as the Middle East and Asia Pacific remained above water. Still, positive momentum heading into the fourth quarter is threatened to be upended by escalating COVID cases combined with more countries and municipalities reinstituting protective measures to contain the virus, steps that are typically anti-movement and anti-business.

Italian hotels attract foreign investors during pandemic 

The coronavirus pandemic is spurring deal opportunities in Italy’s luxury hotel sector as international travel restrictions aggravate financial woes. Italy is the only European country with more than 1 million hotel rooms, and big chains account for only 5% of them, with the rest of the market dominated by family-owned businesses. Industry experts believe foreign investors have been deterred by small sizes and fragmented ownership that have undermined profitability. But the crisis threatens to change things as it ravages a sector that was already laboring under heavy debt loads.

More from The Financial Times

COVID-19 spike expected to prolong U.S. recovery

Continued political uncertainty leading up to the presidential inauguration, the speed of the business traveler’s return after a vaccine, and the length and severity of a resurgence of the virus in Q4 and into 2021 are impacting lodging’s recovery in the U.S., according to a new report from PWC. In May, the data firm had assumed the then consensus view that the daily number of new COVID-19 cases in the U.S. peaked in late April. However, that was inaccurate and now the current daily number is over four times that level. This has significantly impacted the recovery timeline, PWC says.

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Relief ‘can’t wait’

The COVID Relief Now Coalition, a group of more than 300 major public and private sector U.S. groups, including the American Hotel & Lodging Association (AHLA), released a new ad, “Economic Relief Can’t Wait,” imploring U.S. Congress to pass additional economic relief during the current lame duck session. Additionally, in a recent letter sent to Congress, the coalition highlighted the millions of jobs, small businesses and vital government services that are on the line. The letter stated, “If Congress fails to act, millions of employees will be furloughed or terminated; millions of unemployed Americans will lose their unemployment insurance pandemic benefits; hundreds of thousands of companies will be at risk of closing their doors forever; and the vast majority of state and local governments will have to curtail critical services in order to balance budgets due to a decline in tax revenue.”

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The Como bubble

With the new 60-day tourist visa recently launched to restart the Thai tourism economy, Singapore-based Como Hotels and Resorts has introduced the “Como Bubble,” designed for a stay of at least 21 nights at its two Thai properties, Como Metropolitan Bangkok and Como Point Yamu Phuket. Complying fully with Thailand’s quarantine rules for international visitors, the package includes an airport pick-up, followed by a 15-night stay at the Como Metropolitan Bangkok. Then guests will be transferred to the island of Phuket and the Como Point Yamu Phuket. Complimentary yoga and guided meditation classes are on offer throughout the stay.

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