Lend Lease (U.S.) Public Partnerships has closed on the second phase of the Privatization of Army Lodging (PAL) program and secured $275 million in project debt, the international property and infrastructure group announced Wednesday.
The project’s second phase calls for renovating and developing rooms at lodging facilities at 11 posts. InterContinental Hotels Group, one of the world’s largest hotel groups, operates the PAL hotels under the IHG Army Hotels name. The program now covers 8,200 hotel rooms at 21 installations throughout the United States and Puerto Rico. A map of PAL hotel locations is available on the IHG Army Hotels website.
“Leveraging the government’s assets and raising private funds has resulted in exceptional lodging facilities that meet and exceed the needs of today’s military and government traveler,” Marc Sierra, managing director for Lend Lease (U.S.) Public Partnerships, said in a written statement.
The PAL program began in 2009, with Lend Lease assuming ownership of hotel facilities at 10 Army posts. In 2010, the company was asked to implement the second phase of the program. Lend Lease was offered the third and final phase of the PAL program in October 2011. If the Army and Lend Lease agree to terms and close on the final phase, Lend Lease will oversee more than 15,000 hotel rooms on 42 installations.
Existing facilities will receive extensive renovations and improvements, with some hotels receiving required upgrades to operate under the Holiday Inn Express brand. In addition, five new Candlewood Suites hotels will be developed over the next two years, the first of which is being built on Joint Base San Antonio. Groundbreaking for the 310-room hotel took place in May with completion expected in spring 2014.