Hotel company is in the Army now
The parent company of Holiday Inn this week opened two new properties in an unusual location: the Army base on the Presidio in Monterey, CA.
InterContinental Hotels Group is embarking on the third and final phase of a privatization program that will bring its IHG Army Hotels portfolio to 76 properties on 39 Army bases.
The military teamed with IHG after an internal survey found the Army’s lodging for families and guests was in desperate need of repair, and renovations would take 25 years and cost $1 billion.
IHG’s marching orders are to take over the management of those properties that can be renovated, and tear down and rebuild those that cannot.
The Privatization of Army Lodging program gives IHG 50-year leases to maintain and renovate the properties.
Guest lodging is used by servicemembers between assignments, trainees, government workers, and visiting family members.
IHG will bring new amenities like fitness centers, high-speed Internet, weekly social hours, and free shuttle service, and give guests points in the IHG loyalty program.
Room rates at the new hotel rates will be based on 75% of the federal government’s per diem allowance for lodging, somewhere between $134 and $149 this fiscal year.
The money used to refurbish the Army hotels will come from IHG and real estate company Lend Lease, according to The New York Times.
Next on the list for renovations are hotels at Fort Bragg in North Carolina, Aberdeen Proving Ground and Fort Meade in Maryland, West Point in New York, and Fort Stewart in Georgia.
By Cheryl Rosen
Cheryl
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