One of the hardest hit sectors during the COVID-19 pandemic has been the hospitality industry, which included restaurants and hotels. A US congressman could bet on the return of hotels with a recent investment in an LLC that owns hotels.
What happened: Speaker of the Chamber Nancy Pelosi recently added money to the REOF XX SARL in which she has already invested money.
As reported by Congress on Twitter, Pelosi invested between $15,000 and $50,000 in the LLC on August 24. The investment was announced today with a new filing.
The filing indicates that this is an additional investment in the LLC which acquired five Courtyard by Marriott hotels: Fairfax, Virginia (1 hotel); Baltimore, Maryland (2 hotels) and San Antonio, Texas (2 hotels). Courtyard by Marriott hotels are franchised by Marriott International Inc. TUE.
Congresstrading noted that this LLC received $1.4 million in Paycheck Protection Program (PPP) loans under the federal government’s program to help struggling businesses during the COVID-19 pandemic. The PPP loan was forgiven and used for payroll according to another source.
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Why it matters: Pelosi has put money into REOF XX LLC five times since January 2020, according to Capitol Trades.
REOF XX LLC is a commercial real estate investment with ties to Flynn Properties Group, a unit headed by Greg Flynn, owner of the largest restaurant franchising company in the United States, Flynn Restaurant Group.
The five hotels mentioned in Pelosi’s filing are among the hotels listing on the Flynn Properties website.
Several other Pelosi-related companies contracted PPP loans as part of the Small Business Association program to assist with payroll during the COVID-19 pandemic.
Pelosi and her husband have come under scrutiny over large stock and options purchases, the timing of several deals coming close to major government announcements and the perception that internal dealings could occur.
Investing in the hospitality sector could signal that Pelosi has seen the travel industry show continued recovery from COVID-19.