FX.co ★ Target Hospitality : U.S. Plans To End Services Agreement For South Texas Family Residential Center

Target Hospitality Corp. (TH) has announced that it received a notification from the U.S. government regarding its intention to terminate the existing services agreement for the South Texas Family Residential Center (STFRC). This termination, affecting Target Hospitality’s migrant programming partner, is expected to take effect around August 9, 2024.

Target Hospitality provides facility and hospitality solutions to this partner through a lease and services agreement, which utilizes Target’s owned modular assets. The STFRC Partner has informed Target of their intention to terminate the contract concurrently with the effective date.

Despite this change, Target Hospitality will retain ownership of the assets, allowing the company to continue leveraging these modular solutions to meet customer demand across its current operating segments and explore other potential growth opportunities.