Lendlease closes on final phase of U.S. Army Lodging Privatization Program
NEW YORK, Oct. 1, 2015 /PRNewswire/ -- Lendlease, an international infrastructure and property solutions provider and leader in public-private community development, has achieved operational and financial closing on the final phase of the Department of the Army's Privatization of Army Lodging (PAL) program by securing $250 million in additional project debt, for a total of $715 million in senior debt financing. Focused on improving the condition of on-post hotel facilities for Military members, their families and all government travelers, this latest closing includes 2,058 hotel rooms located on Fort Lee, VA and Fort Benning, GA. InterContinental Hotels Group (IHG), one of the world's largest hotel groups, is the PAL hotel operator.
The PAL program began in 2009, with Lendlease assuming ownership of hotel facilities on 10 Army posts. In 2010, the company was asked to implement the second phase of the program at an additional 11 posts. Lendlease was offered the third phase of the PAL program in October 2011. Today, Lendlease's privatized hotel portfolio includes 12,492 hotel rooms on 41 military installations.
"Lendlease is honored to lead the Department of Defense's only lodging privatization program," said Claire Johnston, Managing Director, Communities. "Leveraging the government's assets and raising private funds has resulted in exceptional lodging facilities that exceed the needs of today's military and government traveler and which deliver on Lendlease's commitment to sustainability and innovation."
At Redstone Arsenal in Alabama, Lendlease is delivering the Nation's first all-Cross Laminated Timber hotel. The 58,850 square foot, four-story hotel is comprised of 92 guestrooms and is the first development of its kind in the United States. The hotel will be branded Candlewood Suites® and is expected to open its doors by year-end.
To date, 14 Holiday Inn Express® hotels have been delivered through the PAL program with another five currently under renovation. In addition, Lendlease has delivered five new Candlewood Suites® hotels with three under construction. One Staybridge Suites® is under construction at Fort Belvoir, VA.
All excess revenue from the PAL program is reinvested back into the portfolio, ensuring the facilities will remain top-notch for decades to come.
A list of IHG Army Hotels locations can be found by visiting www.ihgarmyhotels.com.
For additional information, contact:
Meryl Exley
Director of Marketing, Public Partnerships
T 615 324 8839 M 615 481 0497
For additional information, contact:
Meryl Exley
Director of Marketing, Public Partnerships
T 615 324 8839 M 615 481 0497
[email protected]
About Lendlease
Lendlease is a leading international property and infrastructure group. Listed on the Australian Securities Exchange and with circa 13,700 (June 2015) employees worldwide, Lendlease's capabilities span the property value chain.
In the US, Lendlease's public partnership business is the nation's leader in public/private community development. With a focus on creating sustainable value, Lendlease creates communities that regenerate our environment, enrich people's lives and foster economic growth. Lendlease has worked extensively with the Department of Defense through the Military Housing Privatization Initiative (MHPI), a program that provides for the transfer of military housing assets to private sector companies. With over 40,000 residential units, 192 apartments and 12,492 hotel rooms in its portfolio, Lendlease will finance, develop, build, renovate and operate these sites for at least 50 years.
We create innovative and sustainable property solutions, forging partnerships and delivering maximum benefits to clients, investors and communities. Safety is our number one priority and Lendlease is committed to operating Incident & Injury Free wherever we have a presence.
SOURCE Lendlease; Lend Lease
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