Matthew Garrett, Executive Vice President, Asset Management at Centinel Public Partnerships
Not long ago, service members traveling on military business often checked into outdated, on-base lodging with rooms that reflected tight budgets, aging infrastructure and limited options.
Today, they check into modern hotels that feel like home. Thanks to the Privatization of Army Lodging (PAL) program, public-private partnership has transformed military lodging nationwide, delivering the quality, efficiency and long-term value that the armed forces and the American people deserve.
As the development partner and property owner behind PAL, Centinel Public Partnerships, alongside IHG® Army Hotels, has set the standard for how privatization can successfully improve government services without taxpayer burden.
For decades, military families and those traveling on official military business often experienced lodging that failed to reflect the respect and comfort they were due. Traditional government-run systems are rightfully focused on the significant task of running the country and maintaining military readiness. It makes sense that these systems struggled to provide consistent quality across installations.
All that changed when the Department of Army introduced the PAL program. By leveraging private-sector innovation and efficiency, PAL is designed to eliminate substandard Army lodging and ensure long-term sustainability. As the program’s first and only developer, Centinel has brought private investment and operational expertise to modernize military lodging—without the use of Army funds or government guarantees. IHG® Army Hotels serves as the hotel operator, delivering trusted brands and consistent hospitality standards.
This public-private partnership is paying off. Since PAL was established in 2009, Centinel has invested $1.3 billion to develop or renovate over 12,000 hotel rooms across 40 installations nationwide. New and renovated hotels feature full kitchens, business centers and fitness facilities and host weekly events to foster community. Guest satisfaction ratings averaged 4.5 stars in 2025.
The work doesn’t end after initial renovations, either. Even after a location is up and running, Centinel reinvests $0.43 of every dollar earned, ensuring sustained improvement over the life of the program. Through efficient operations, PAL saves $85 million in travel costs for the Army every year. All of this is accomplished entirely through private funding—no Army funds or government guarantees—making privatization a fiscally responsible and self-sustainable choice for the military.
Centinel and IHG have created comfortable, welcoming spaces for military personnel and their families to stay, whether it’s for business travel or while they’re awaiting permanent housing on base. But the impacts on the military are greater even than that. Nearly 25% of IHG Army Hotels’ workforce is military spouses, veterans or retirees. The program allowed 2,300 DOD employees to transition to the private sector, with 89% being rehired within PAL properties. Plus, Centinel and IHG have collectively contributed over $4 million to nonprofits that support military members and veterans.
In the last 15-plus years, Centinel and IHG’s PAL portfolio has maintained consistent performance and guest satisfaction, proving the scalability of success across not only the Army, but potentially other branches as well. The Centinel-IHG partnership demonstrates how strategic privatization enhances both mission readiness and morale across the military. By applying the same principles of accountability, reinvestment and hospitality-centered design, the Department of Defense can modernize additional services while maintaining cost efficiency—because all our service members deserve to rest easy.