Actus and U.S. Army Engage in Privatization of Army Lodging Program

In mid-August, Actus Lend Lease assumed ownership and operations of 62 lodging facilities across 10 U.S. Army installations. It marked the first phase of the Privatization of Army Lodging (“PAL”), a three-phase Army- led public-private venture to improve the quality of life for Army Soldiers, their families and government travelers in its hotels.
The first phase of PAL will invest approximately $125 million into the 3,200-room portfolio through the direct placement of institutional debt and equity. Actus will commence a construction and renovation program that will brand hotels under select InterContinental Hotels Group (IHG) brands and eliminate the backlog in deferred maintenance for the existing lodging facilities. IHG started operations August 15, 2009, and immediately began to institute guest service and loyalty programs for travelers to these installations.
“We’re excited to be a part of this landmark initiative,” said Dale Connor, managing director for Actus. “The ability of this Project and Lend Lease’s commercial team to secure private debt and equity in today’s tight and uncertain capital markets is a testament to the attractiveness of these hotel assets and the strength of the public-private venture model. We look forward to continued success throughout the project.”
Actus and IHG were selected by the Army for their demonstrated ability to work well with public and government entities to deliver the best private-sector practices in finance, design, development and operations in the ownership of real estate portfolios. Over the course of their relationship, Actus and IHG will implement a revitalization campaign that will conclude with the majority of the lodging facilities operating under select IHG brands. 
Read more about it here.

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