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Privatization of Army Lodging (PAL) – A Foreign Owned Monopoly

The intent of PAL was to improve the quality of life for Soldiers and their families through the renovation and new construction of privately run temporary lodging facilities on 42 Army bases. Unfortunately, an In-License Agreement was obtained by foreign run corporations in order to guarantee occupancy and increase their investment rating on the bond market. US Soldiers are now being forced to stay in Intercontinental Hotels Group (IHG) Hotels on Army bases; Only after 100% occupancy is reached can service members stay at local U.S. owned hotels off base.

The PAL In-License Agreement

PAL provides no guarantee of occupancy to Lend Lease, but they needed a guarantee to get a favorable bond rating to privately finance the project. Going against the contract, a controversial In-License Agreement was signed to secure this guarantee. Moody's bond rating states: “50% of annual Room Nights Sold are expected to be generated from the In-License Agreement”. Without this In-License Agreement, the PAL program would fail.

Is Your Business Affected?

Are you a business owner affected by the PAL? Hotels, homes, and apartment communities are going into foreclosure as a result of PAL. This In-License Agreement creates many non-compete and anti-trust issues. Veteran owned businesses are being lost to these foreign owned companies which have a sole source monopoly. Join Our Cause to save jobs within American based companies and stop sending these profits overseas.

Take Action!

Contact your Congressional Representatives. Take a stand against this foreign owned monopoly which has been awarded a 50 year multi-Billion dollar contract. Put the choice of where to stay back in the hands of the soldiers and their family.