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Privatization of Army Lodging (PAL)

What is it?
The PAL program is the Army's primary means of revitalizing transient housing facilities and providing for their long-term sustainment. The program is a natural extension of the success achieved in eliminating inadequate Family housing through the Residential Communities Initiative (RCI).

The PAL program leverages government land and on-post lodging assets to obtain private capital and expertise to build, renovate, operate, and maintain adequate transient lodging for the long term. The program conveys existing units and 50-year leases for the underlying ground to a qualified development partner and hotel operator. The PAL program consists of three project groups, each with multiple installations, encompassing all current lodging operations in the continental United States, Alaska, Hawaii, and Puerto Rico, with a projected end state of more than 17,000 hotel rooms.

What has the Army done?
In September 2006 the Army selected Actus Lend Lease—a veteran partner already working with the Army at multiple installations in the RCI program—as the partner for the first (Group A) of the three PAL project groups. Actus chose InterContinental Hotels Group (IHG), as the operator and manager for this project. The Group A project includes Redstone Arsenal, Alabama; Fort Rucker, Alabama; Fort Leavenworth, Kansas; Fort Riley, Kansas; Fort Polk, Louisiana; Fort Sill, Oklahoma; Fort Hood, Texas; Fort Sam Houston, Texas; Yuma Proving Ground, Arizona; Fort Myer, Virginia; Fort McNair, District of Columbia; and Fort Shafter's Tripler Army Medical Center, Hawaii.

What continued efforts does Army have planned for the future?
The Army is currently working with Actus and IHG to develop the Lodging Development and Management Plan (LDMP). The Group A LDMP, which provides the detailed plan for project implementation, was completed for DMP approval in March 2008. Actus will enter into a long-term lease agreement for the operation and management of lodging at the Group A sites. The transfer of operations is expected to occur in 2009.

Why is this important to the Army?
The PAL program is critical to the Army's goal of eliminating inadequate transient housing and sustaining quality facilities for the long term. It allows the Army to leverage its assets to achieve these results more economically than through traditional methods. Quality accommodations for Soldiers and their Families in transit contribute to well-being, readiness, and retention.

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