Lodging divestiture, right-sizing underway to ensure future mission success

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  • AFIMSC Public Affairs

JOINT BASE SAN ANTONIO-LACKLAND, Texas -- The Department of the Air Force is divesting lodging operations at nine installations and right-sizing facility capacity at others to meet a Defense Department requirement that all lodging is self-sustaining without taxpayer funding. 

In a 2020 memorandum, DoD directed the conversion of temporary duty and permanent change of station lodging to fully non-appropriated fund (NAF) operations. While not-for-profit, this means AF Lodging operations are required to be self-sustaining without the support of appropriated, or taxpayer, funds. 

The Air Force Services Center, who manages the lodging program, conducted a review of lodging operations across the DAF and identified for closure lodging facilities at Los Angeles AFB, California; Arnold AFB, Tennessee; Hanscom AFB, Massachusetts; Tinker AFB and Vance AFB, Oklahoma; Grand Forks AFB, North Dakota; Offutt AFB, Nebraska; Homestead Air Reserve Base, Florida; and Pittsburg ARB, Pennsylvania. 

Timelines for divestitures will vary based on installation circumstances.

"Over the past two decades, declining appropriated fund support drove resourcing decisions, deferring higher-cost facility sustainment and maintenance items for buildings throughout the lodging portfolio," said Victoria Fragomeli, AFSVC Business Operations director. 

At Offutt, only the Malmstrom Inn is currently being used after the O’Malley Inn was closed in August 2019. The current plan is for the Malmstrom Inn to remain open until at least September 2023.

We are in a really unique situation compared to some of the other installations. With reconstruction efforts ongoing due to the March 2019 flood, our timeline is a moving target, but we’ll remain open for at least another 10 months if not longer.
Lt. Col. Ryan Davis, 55th Force Support Squadron commander

Currently, the Air Force Lodging inventory consists of 977 buildings (24,546 rooms) across 87 installations. Through divestiture of facilities or right-sizing capacity to operational demand, it will be transitioning to 921 buildings (23,810 rooms) across 78 installations. 

"When complete, the overall inventory will enable substantial facility, sustainment, restoration and modernization savings," said Janae Sergio, Air Force Lodging chief. "In order to maintain quality and meet standards, we must continue to evaluate lodging facilities at all installations. Certain lodging operations will be reduced in size or closed to ensure the DAF can maintain its lodging portfolio and reinvest to meet current and future program needs."  

The DAF-wide evaluation assessed each installation's lodging, current inventory conditions, historical occupancy rates and projected future needs. Assessments included: actual usage data by active-duty military temporary duty and permanent-change-of -station members and families; age and condition of facilities; costs to maintain and replace facilities; and the availability of off-base hotels. 

Installations that may not have met the business model criteria evaluated but have a mission requirement in addition to a lack of off-base lodging options, will remain open. Properties identified for closure have historically low occupancy during non-COVID years; have aging room inventories with high facility, sustainment, recapitalization and modernization repair costs; or are small operations with fewer than 85 rooms, Sergio said. The AFSVC continues its review for additional installation lodging operations for possible divestiture. 

Business operations at the remaining DAF Lodging properties will continue as usual, and reservations can be made online via https://www.dodlodging.net. Alternate accommodations on the DOD Preferred Commercial Properties List can be found at https://www.defensetravel.dod.mil/site/lodging.cfm or through the Defense Travel System.