Lend Lease Corp. closed on the third phase of the Army’s Privatization of Army Lodging (PAL) program, securing $465 million in project debt to expand the initiative to 18 new posts, the international property and infrastructure group said Wednesday.
Over the next eight years, Lend Lease will deliver 1,018 new Candlewood Suites brand hotel rooms and renovate 2,745 hotel rooms to Holiday Inn Express brand standards. The 18 installations under phase three cover about 3,800 hotel rooms throughout the United States. In total, the $1 billion PAL program will result in the construction and renovation of 11,637 rooms across 39 installations, according to the company.
Bank of America finalized the long-term $465 million loan, but would not disclose further details about it, reported the Wall Street Journal.
InterContinental Hotels Group operates the PAL hotels under the IHG Army Hotels name. Facilities that can be salvaged are being converted into Holiday Inn Express properties. Buildings that are run-down are being demolished and turned into extended-stay Candlewood Suites and Staybridge Suites, which have full kitchens and common areas, reported USA Today.
The PAL initiative began in 2009, with Lend Lease assuming ownership of hotel facilities at 10 posts. In 2010, the company was asked to implement the second phase of the program, adding 11 installations. Lend Lease was offered the third and final phase in October 2011.