You are on page 1of 1


Privatized Army Lodging began in 2009 and now includes a total of 21 installations in which hotels are now owned and operated by a private entity. PAL engages the private sector to manage, build, renovate, maintain and operate transient lodging on Army installations within the continental United States, Alaska, Hawaii and Puerto Rico. The program is modeled after the Army's successful privatized family housing program, the Residential Communities Initiative, known as RCI. Fort Huachuca's lodging operation was transferred to the private sector on Aug. 12, 2011. The decision to privatize and the company selected was not a local decision. The Department of Army worked with Lend Lease and InterContinental Hotels Group to negotiate the terms of the lease, the associated business agreements and the financing structure. In times of scarce resources, it is especially important that the Army partner with private industry to leverage its limited funds, officials said. In PAL the Army has contributed the existing facilities and the private sector has secured loans to recapitalize the inventory. The loans are supported by room rates which are capped at 75% of the prevailing lodging per diem rate as a weighted average across the portfolio. This ensures that the rates are affordable to official travelers and within Army budget expectations. The Army provides no guarantees to the private investors with regard to the loan or occupancy. At Fort Huachuca, IHG is currently operating the 230 rooms previously managed by Army Lodging. IHG plans to build a 244-room hotel on the installation within the next five years, resulting in a total of 478 rooms available on post for Army travelers. Current room rate for person on orders (official travel) with IHG on-post is $65.75 per night. No Tax if they have the tax exempt form with them. For guests without orders (unofficial travel) room rates are $81 to $86 per night PLUS tax. There is no requirement under PAL for TDY or PCS personnel to use the hotel rooms on post. Just as it is with Privatization of Army Housing, use of on post hotel rooms are optional for the military traveler. PAL does not require students to stay on post or to move on post. There is no longer any requirement for Statements of Non-Availability. Local contracts will be solicited for local hoteliers to bid on for housing those military students on temporary duty status who are not able to be accommodated by on-post lodging. Businesses interested in bidding on these contracts, should register online with the Central Contractor Registration at and become familiar with the online process for bidding on a contract at FEDBIZOPS where they can search for open solicitations. The solicitation will include a Point of Contact that should be used as a resource if there are any questions on the solicitation or how to prepare the proposal for bid. For assistance, they may also contact Chuck Collins in the Small Business Office at 533-3001.