Air Force Seeks to Modernize Lodging with Privatization Initiative
The Air Force is embarking on a significant shift in its approach to managing on-base accommodations. In an effort to modernize and improve the quality of its lodging facilities, the service is seeking a private company to take over its aging hotel chain at military bases worldwide.
Currently, service-operated hotels at 58 military bases are under consideration for privatization. The plan involves a company signing a long-term lease, potentially spanning 50 years, to update and manage the facilities that primarily serve troops and their families for travel and temporary-duty assignments.
Challenges facing Air Force inns have become more pronounced since 2018, as they were stripped of taxpayer funding, leading to notable closures in 2022. This move aligns with Defense Secretary Pete Hegseth’s broader strategy to privatize military services that are “not inherently governmental,” which includes base exchanges and commissaries, as outlined in a recent memo.
“A 2023 analysis by [Department of the Air Force] leadership determined that commercialization of DAF lodging offers the best path to sustainment,” the Air Force stated in a news release. The shift to a fully nonappropriated funds model has presented challenges for facility maintenance and upgrades.
Mike Waltz, the current U.S. ambassador to the United Nations nominee and former National Security Adviser, has also emphasized the need for the military to exit the hotel management business, echoing similar sentiments during his time as a congressman.
Plans are in motion for the Department of the Air Force, which includes the Space Force, to begin accepting proposals this summer. The initial phase targets 23 installations, including Altus Air Force Base in Oklahoma, Barksdale Air Force Base in Louisiana, and Beale Air Force Base in California.
According to Robert Moriarty, deputy assistant secretary of the Air Force for installations, “Quality lodging is critical for airmen, Guardians, and their families. Whether for training, relocation, or temporary duty assignments, ensuring reliable, well-maintained lodging is vital to readiness, mission success, and resilience.”
Benjamin Kindt, chief of the Commercial On-Base Lodging Program Management Office, emphasized the urgency and thoroughness of the selection process, stating that the service is “focused on swiftly, yet effectively, selecting an industry leader as a lease applicant.”
The Air Force aims to finalize the selection of a company by summer 2026 and complete the transition of operations and management by fall 2027.
This initiative follows the Army’s successful privatization of its hotels, which began in 2009. The Intercontinental Hotels Group now manages and operates 41 domestic lodging locations, as noted by the Defense Travel Management Office.
In October, the Air Force announced its intention to commercialize its lodging program, taking cues from the successful Privatized Army Lodging (PAL) program, which has led to “greatly improved guest satisfaction scores across the program.”
