In May $2018,$ Upscale Management Co$.($the $$Company$)$ entered into a contract with

Second City Hotels $($the $$Customer$)$ to provide hotel management services. The contract

was for a five$-$year period at a fixed price of $$10,000$ per day $($total transaction price of

$$18\mathrm{.}26$ million $[$$$10,000$ per day $1,826$ days$]).$ The Company$$s hotel management

services include hiring and managing employees, procuring goods and services, and

advertising and marketing at one hotel property owned by the Customer.

On a given day, the Company might clean guest rooms, perform marketing efforts to

increase occupancy, and operate the concierge desk. The contract provides integrated

hotel management services $($the $$integrated services$)$ over the term of the contract and

not a specific quantity of specified services $($e$.$g$.,$ cleaning $100$ guest rooms per day$).$ The

underlying activities can vary significantly from day to day; however, the daily activities

are required to satisfy the Company$$s obligation to provide the integrated services.

Therefore, the integrated services transferred to the customer are substantially the same

during each period $($i$.$e$.,$ the Customer receives substantially the same benefit each

period$).$

In March $2020,$ the World Health Organization declared COVID$-19$ a global pandemic.

The COVID$-19$ pandemic and related travel restrictions and other containment efforts

had a significant impact on the travel industry. As a result, after providing two years of

integrated services $($for which the Company recognized $$7\mathrm{.}3$ million in revenue $[$$$10,000$

per day $365$ days per year $2$ years$])$ and because of the economic downturn resulting

from the COVID$-19$ pandemic, in May $2020,$ the Company agreed to lower the price for

the remaining three years of integrated services to $$8,000$ per day.

The following is additional information related to the contract:

$$ At inception, the contract met the criteria in ASC $606-10-25-1$ to be accounted for

as a contract with a customer.

$$ Each daily increment of service is distinct, meets the criteria for recognizing

revenue over time, and has the same method for measuring progress. Therefore,

the Company concluded that the integrated services satisfy the requirements of

ASC $606-10-25-14($b$)$ to represent a series of distinct goods or services and to

be accounted for as a single performance obligation.

$$ The change in the price of the contract is approved by both parties to the contract.

There were no other changes to the terms of the contract.

$$ The Company has no history of granting price concessions, and the price

concession is not related to the quality of the services transferred.

$$ The Company believes that the Customer has the intent and ability to pay the

updated agreed$-$upon price when it is due. $1.$ Is the impact of the COVID$-19$ pandemic and the resulting price concession indicative of a significant change in facts and circumstances under ASC $606-10-25-5,$ necessitating reassessment of whether the contract can be accounted for as a contract with a customer under the criteria