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Target Hospitality Announces 5-year Contract Award Reactivating South Texas Assets
TGTTarget(TGT) Prnewswire·2025-03-06 11:45

Core Viewpoint - Target Hospitality Corp has entered into a five-year lease and services agreement with CoreCivic to reactivate operations at the Dilley Facility in Texas, which will support up to 2,400 individuals and is expected to generate over 246millioninrevenueoveritsterm[1][4][3]CompanyOverview−TargetHospitalityisoneofNorthAmerica′slargestprovidersofverticallyintegratedmodularaccommodationsandvalue−addedhospitalityservices,offeringarangeofsolutionsincludingfoodservicemanagement,concierge,laundry,logistics,security,andrecreationalfacilities[8]ContractDetails−TheDilleyContractwillmaintainasimilareconomicstructuretothepreviousagreementwithCoreCivic,includingfixedminimumrevenueregardlessofoccupancy,withananticipatedrevenueofapproximately246 million in revenue over its term [1][4][3] Company Overview - Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, offering a range of solutions including food service management, concierge, laundry, logistics, security, and recreational facilities [8] Contract Details - The Dilley Contract will maintain a similar economic structure to the previous agreement with CoreCivic, including fixed minimum revenue regardless of occupancy, with an anticipated revenue of approximately 30 million in 2025 [4][6] - The Dilley Facility previously operated from September 2014 to August 2024 as the South Texas Family Residential Center, and its reactivation will require no capital investment due to the consistency of the community layout [2][3] Strategic Importance - The reactivation of the Dilley Facility highlights Target's flexible operating model and unique capabilities, positioning the company to respond effectively to customer demand and pursue additional growth opportunities aligned with U.S. government immigration policies [5][6] - The Dilley Contract is supported by an amended intergovernmental services agreement with U.S. Immigration and Customs Enforcement, subject to annual appropriations and potential cancellation with 60 days' notice [7]