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[FORT HUACHUCAS PRIVATIZED ARMY LODGING FAQ] September 22, 2011

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 limitedfunds, 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 guestswithout 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 athttps://www.bpn.gov/CCRSearch/Search.aspxand become familiar with the onlineprocess for bidding on a contract at FEDBIZOPShttps://www.fbo.gov/index?cck=1&au=&ck= 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.

https://www.bpn.gov/CCRSearch/Search.aspxhttps://www.bpn.gov/CCRSearch/Search.aspxhttps://www.bpn.gov/CCRSearch/Search.aspxhttps://www.fbo.gov/index?cck=1&au=&ckhttps://www.fbo.gov/index?cck=1&au=&ckhttps://www.fbo.gov/index?cck=1&au=&ckhttps://www.bpn.gov/CCRSearch/Search.aspx