Why Privatize?

Of the almost 17,000 hotel rooms initially operated by the Army in the continental United States, Alaska, Hawaii and Puerto Rico, more than 80% were in need of replacement or major renovation. The cost for this revitalization was close to $1B and the Army estimated that it would take in excess of 20 years to bring the inventory up to an adequate standard through conventional appropriation channels. Additionally, the internal Army plan for revitalization did not provide for adequate reinvestment in lodging facilities over time. The Army's inability to sustain its lodging inventory reinforced the Army leadership's position that owning, operating and maintaining lodging facilities was not a core function of the Army.

IHG Army Hotels. 877-711-TEAM

PAL Goals

  • Improve the quality of transient lodging facilities throughout the continental United States, Alaska, Hawaii and Puerto Rico, supporting soldiers and the Families by privatizing the lodging function

PAL Objectives

  • Improve quality of life for Soldiers and their Families
  • Use of private sector capital and best practices
  • Overcome $1B+ revitalization backlog
  • Provide for long-term sustainment of the facilities
  • Capitalize on success of a proven initiative
  • Transfer a non-core function
  • Offer rooms across the privatized portfolio at a weighted cost of 75% of the prevailing lodging per diem