Lodging Privatization on Track to Upgrade Army Hotels

The Army’s lodging privatization partner has renovated six hotels and broken ground on two new ones, keeping the service on track to meet its goal of completing development of 14,300 hotel rooms at 42 posts by the spring of 2020.

The six renovated facilities are located at Fort Polk, La., Fort Hood, Texas, Fort Sill, Okla., Fort Rucker, Ala., Fort Wainwright, Alaska, and Fort Hamilton, N.Y.; the two still in the process of being built are at Fort Sam Houston, Texas, and Fort Riley, Kan., reported the Army News Service.

Turning to the private sector for capital is allowing the Army to overcome an estimated $1.2 billion in new construction and renovation needed to bring its hotels up to standard, according to Rhonda Hayes, chief of the Army’s capital ventures office.

The Privatization of Army Lodging (PAL) program began in 2009, with Lend Lease (U.S.) Public Partnerships 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. That phase is expected to close next year.

InterContinental Hotels Group 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.

Dan Cohen
Dan Cohen
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