Company overview

Target Hospitality provides places to stay, meals and day-to-day facilities services where customers need to house workers near project sites. Companies pay it to supply and manage accommodation rather than arrange housing and services themselves. Lodging with hospitality services supplies most revenue; construction fees are another substantial source. Its largest business serves natural-resource companies in the Permian Basin of Texas and New Mexico.

The company also builds and runs workforce communities for remote mineral and infrastructure projects. These include Lithium Nevada’s Thacker Pass Project and a regional data center campus in the southwestern United States. Customers pay for construction and ongoing accommodation services. Agreements often run for several years and can require exclusive use of Target’s facilities; some guarantee minimum payments regardless of occupancy, while others depend on use.

A separate government business provides facilities and hospitality services through a government contractor at the Dilley Immigration Processing Center in Texas. That business now relies on one customer. The Dilley contract provides minimum revenue regardless of occupancy, but depends on annual federal funding and can be canceled for convenience on short notice. Across the company, a small group of large customers supplies much of the revenue, with one workforce-housing customer contributing a substantial share. Demand depends on customers’ project spending, timing and workforce deployment.