Westfield Concession Management, LLC has been awarded a 17-year contract to develop, lease and manage food and beverage and retail concessions in three terminals at Los Angeles International Airport.
The Los Angeles Board of Airport Commissioners approved the Terminal Commercial Manager Concession Agreement June 6 for Terminals 1, 3 and 6.
The agreement calls for a two-year development period and a 15-year operational period, with Los Angeles World Airports estimated to receive over $17 million for the first fully developed year and over $180 million over the first 10 years of the term, airport officials said.
Westfield and its concessionaires will be required to invest no less than $78.6 million in initial improvements and $15.7 million in mid-term refurbishment improvements to the three terminals. The agreement covers a minimum of 69,970 square feet of concession area.
“Los Angeles World Airports is undertaking a $4.11-billion modernization program at LAX to improve customer service, safety and security at one of the most significant international gateways in the world,” said LAWA Executive Director Gina Marie Lindsey. “Our selection of Westfield Concession Management will allow us to meet the demands of today’s travelers for quality dining, shopping and other services in a timely, cost-effective manner.”
Under the agreement, Westfield will select concessionaires subject to LAWA approval; design, develop and oversee construction of concession and related spaces; market and promote the concessionaires; and negotiate and administer contracts with each concessionaire. To avoid any potential conflicts of interest, Westfield is not allowed to operate any of the concessions.
“Westfield is very proud to be selected to partner with Los Angeles World Airports in the transformation of Los Angeles International Airport,” said Peter Lowy, Westfield Group chief executive officer. “We are fully committed to bringing our global resources and development expertise to deliver an iconic, world-class airport experience.”
Westfield also previously won a similar 17-year concession agreement in January covering the existing Tom Bradley International Terminal, the new Bradley Terminal, Terminal 2 and the iconic Theme Building at LAX. The forecasted minimum revenue to LAWA in that agreement is $331.1 million, officials said.