XpresSpa (XSPA) Stock Continues Up On COVID-19 Testing Plans

XpresSpa XSPA Stock News

XpresSpa Group Inc (NASDAQ: XSPA) is running for the top in the market this morning, following up on the tremendous gains seen in the stock yesterday. The stock is up more than 40% in the premarket following news that the company plans to convert its airport real estate into COVID-19 testing centers. Here’s what’s going on:

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XSPA Stock Is Up On Plans To Turn Air Port Real Estate To COVID-19 Testing Centers

In the press release, XpresSpa said that it was in discussions with local airport authorities as well as healthcare partners. The goal of these discussions is to begin providing screening and testing for novel coronavirus at United States airportas.

If all goes well, screening and testing will be conducted by converting select existing spa locations to testing facilities on an interim basis. The company also said that it may add separate, standalone airport locations as testing sites.

In the release, XSPA said that it currently has a portfolio of 46 locations across 23 airports that are ready to be redeployed quickly. At the moment, these spas are closed due to local government mandates categorizing its services as non-essential.

Nonetheless, the company said that it is currently in discussions with JFK international Airport, Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport. The goal with these three airports is to pilot COVID-19 screening and testing for airline employees, contractors, TSA agents and other workers.

Moreover, the company said that it is also in the process of recruiting a medical doctor who would work alongside healthcare officials to help design safe and compliant protocols as well as train employees.

In a statemenet, Doug Satzman, CEO at XSPA, had the following to offer:

We are moving forward with our public and private relationships to make COVID-19 screening and testing in U.S. airports a reality and hopefully will be able to begin pilot testing shortly for the benefit and protection of our fellow citizens. Since the onset of this pandemic, we have thought that we can and should play a significant role within the travel sector in the fight against COVID-19 and other highly contagious diseases in the future given our airport relationships, infrastructure, workforce with TSA clearance and strong desire to keep everyone safe.

Why This News Is So Exciting

Interestingly enough, when COVID-19 started to break out, I remember talking to my wife about the opportunity that would be ahead for the company, or companies, that brought testing into airports.

Keep in mind, while the virus started in China, it has spread around the world. Considering that, what XpresSpa is doing here is overwhelmingly important. Think about it, should testing find its way to airports, countries would be able to focus their effort on fighting the pandemic domestically while keeping tabs on international travelers who may bring it home.

The potential here for XSPA and its investors is incredible as it is the first company that has mentioned efforts to bring COVID-19 testing to airport facilities. As such, this is a stock that’s well worth watching.

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