Army cuts room rates for overseas lodging, but resort hotels rise
SEOUL, South Korea — The Army has cut guest-lodging prices by 15 percent to 40 percent at bases in South Korea and Germany due to savings from the privatization of facilities in the United States.
However, room rates increased at full-service resort hotels like the Dragon Hill Lodge at Yongsan Garrison in Seoul.
The Army has turned over most of its U.S. hotels to large companies in an effort to save money and modernize facilities under a program called Privatization of Army Lodging, or PAL. But it maintains control of guest lodges on overseas installations because of arrangements with the host countries.
Before the privatization program, $15 of every night’s stay went to capitalization, said Marc Jannsen, hospitality operations manager at Installation Management Command headquarters in Texas.
“Since we’ve closed down all Army lodging in the U.S. we have an excess of cash reserves,” he said Wednesday by telephone.
The price cuts, which took effect Oct. 1, are based on operating expenses and vary according to hotel size.
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