Army Hotel Privatization Initiative Reaches Five-Year Milestone

InterContinental Hotels Group (IHG) last week celebrated five years as the hotel operator for the billion dollar Privatization of Army Lodging (PAL) program.

Over the past five years, IHG has brought 77 Army lodging facilities into the IHG Army Hotels portfolio across 39 installations in the United States through three separate phases. This year, IHG has opened 1,300 guest rooms on Army posts. The firm expects to brand an existing 2,000 guest rooms on two posts by the end of 2015, according to a press release.

The PAL program provides a long-term reinvestment plan for renovations and improvements to convert and retrofit existing Army lodging to Holiday Inn Express brand standards, and replace some facilities with newly built Staybridge Suites and Candlewood Suites hotels.

“IHG Army Hotels are delivering excellent guest service experiences, while also improving the quality of on-post lodging for service members, their families, government travelers and military retirees,” said Arthur Holst, vice president of operations for IHG Army Hotels.

Lend Lease is the owner, developer and asset manager for the PAL program. Since the initiative was launched in 2009, Lend Lease has spent more than $380 million on construction and renovation of hotels, according to the firm. New hotels opened to date include:

  • Candlewood Suites hotels — Fort Riley, Kan.; Yuma Proving Ground, Ariz.; Joint Base San Antonio, Texas; Fort Hood, Texas; and Fort Huachuca, Ariz.
  • Holiday Inn Express hotels — Fort Polk, La.; Fort Hood; Fort Sill, Okla.; Fort Rucker, Ala.; Fort Hamilton, N.Y.; Fort Wainwright, Alaska; Fort Buchanan, P.R.; Joint Base San Antonio-Fort Sam Houston; Fort Belvoir, Va.; and Fort Leavenworth, Kan.

The first and only on-post Staybridge Suites hotel is currently under construction at Fort Belvoir, with an opening scheduled for the fall of 2015. The hotel will offer facilities specially designed to cater to the needs of wounded warriors and their families.

Hotel rates average 75 percent of per diem across the portfolio, according to Lend Lease. On average, 39 cents of every dollar spent at IHG Army Hotels is reinvested; total reinvestment over the life of the program is projected to be more than $7.6 billion.

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