THE WOODLANDS, Texas--(BUSINESS WIRE)--Target Hospitality Corp. (“Target Hospitality” or the “Company”) (NASDAQ:TH), the largest provider of vertically-integrated specialty rental accommodations with premium catering and value-added hospitality services in the U.S., today announced plans to add 200 rooms at communities currently under construction in the Delaware Basin – a high-growth area within the Permian Basin. The expansions are being driven by increased customer demand and activity levels in the Permian, reflecting the strength and resiliency of this oil- and gas-producing region.
“Adding 200 additional rooms to our lodging network will further enhance our ability to support our clients’ operations in the Delaware Basin, an expanding hub of production, development and capital investment,” said Brad Archer, President and Chief Executive Officer of Target Hospitality. “The need to expand these recently announced communities even before their initial phases of construction are complete demonstrates the strong demand for our premier lodging and full-turnkey hospitality services in the region. We have a long history of significantly increasing the size of each new community we introduce to our network. These expansions announced today are in keeping with that strong operating history,” concluded Mr. Archer.
The expansions are occurring with the addition of 100 rooms each at the 400-room community in Carlsbad, New Mexico announced in February 2019, and the 200-room community in the Delaware Basin announced in May 2019. The development of each community is underpinned by multi-year, guaranteed contracts with major energy companies, including a major, integrated E&P customer. With these additions, the average available room count across these well-located communities will increase to 800 rooms from an initial 600 rooms. Both expansions are expected to be operational in the fourth quarter of 2019. Construction work continues to progress and as previously announced, both new communities remain on track to be operational with the initial 600 rooms in the third quarter of 2019.
The full-turnkey new communities will feature single-occupancy accommodations complete with private bathrooms, a state-of-the-art commercial kitchen with dining facility, on-premises laundry, and indoor and outdoor recreational areas. Guests will have access to amenities such as 24-hour culinary services, housekeeping, and security. Consistent with the Company’s strong safety culture and like it’s all other communities, the new communities will also stipulate a code of conduct for its guests that includes a “zero tolerance” drug and alcohol policy.
To see a complete list of Target Hospitality’s communities, visit www.targethospitality.com.
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: continued customer demand and activity levels in the Permian Basin; continued expansion to new communities; operational, economic, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry; effective management of our communities; the effect of changes in state building codes on marketing our buildings; changes in demand within a number of key industry end-markets and geographic regions; our reliance on third party manufacturers and suppliers; increases in raw material and labor costs; and our ability to successfully acquire and integrate new operations; global or local economic movements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Target Hospitality
Target Hospitality is the largest provider of vertically integrated specialty rental accommodations and value-added hospitality services in the United States. Target Hospitality builds, owns and operates customized housing communities for a range of end users, and offers a full suite of cost-effective hospitality solutions including culinary, catering, concierge, laundry and security services as well as recreational facilities. Target Hospitality primarily serves the energy and government sectors and its growing network of communities is designed to maximize workforce productivity and satisfaction.