Airport signs deal with Lotte Duty Free Guam - KUAM.com-KUAM News: On Air. Online. On Demand.

Airport signs deal with Lotte Duty Free Guam

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by Mindy Aguon

Guam - The A.B. Won Pat International Airport has completed negotiations and signed a multi- million dollar deal with Lotte Duty Free Guam, LLC for the speciality retail concession at the airport.  The agreement comes just days after the airport denied a protest filed by DFS Guam L.P.. DFS Guam has held the concession contract for 30 years and filed a protest alleging there were irregularities with the procurement process.  The airport immediately resumed negotiating the terms of the new agreement with Lotte.  


Airport Executive Manager Chuck Ada says the agency was losing out on more than $900,000 a month in additional revenue by not entering into the new agreement.  Lotte Duty Free Guam was awarded the bid after an extensive procurement process.  Under the terms of the agreement, the airport's guaranteed rental revenues increase from the current $4.5 million to $15.4 million with the potential for further increased revenues based on precentage rent. The airport was also able to negotiation additional revenue of 1% of all non-airport sales made by Lotte on Guam.  Ada stated, "This is an exciting time for the Airport and we are eager to move forward with our agreement with Lotte.  The Airport will realize tremendous additional value from this contract with Lotte which will undoubtedly contribute to significant increased revenues for the Airport." 

In addition to the increased rental revenues, Lotte has also agreed to improve the airport's retail concession space by investing a minimum of $23 million in capital improvements as well as renovating the airport food court and restroom facilities at no additional cost to the airport.

DFS Guam meanwhile has not provided any comment on the airport's denial of their protest.  DFS Guam's Jim Beighley says the denial is still under review at this time.

 

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