Lotte DF has secured a three-year deal at Guam Airport to extend its existing concession.

Lotte Duty Free has secured a new duty free concession for three years at Guam’s A.B. Won Pat International Airport, the travel retailer has confirmed to TRBusiness.

The new deal with the airport authority, signed on 18 July and running from 21 July 2023 – 20 July 2026, extends the travel retailer’s existing concession – inked in 2013 for 10 years.

Lotte’s Guam Airport store had undergone a major renovation in 2013 over 2,393sq m of retail space, covering fashion, accessories, watches, liquor and tobacco.

Bill ‘signed into law’

A.B. Won Pat International Airport Authority had yet to respond to TRBusiness’ requests for comment at press time, but a report from Pacific Daily News suggests the new concession was awarded to Lotte as airport authorities were authorised to extend it following a bill signed into law earlier this month by Governor Lou Leon Guerrero.

Before 2013, DFS Guam held the concession and the operator has been involved in a lengthy legal feud with Lotte Duty Free and A.B. Won Pat International Airport Authority over the awarding of contracts since.

Lotte Duty Free declined to disclose the specifics of the contract, though Pacific Daily News suggests the terms of the extended deal includes Lotte paying a fixed annual concession rent fee of $2.64 million in advance for the contract year and a set fee for each passenger based on cumulative passenger counts for the term of the contract.

It adds that for the first million passengers, the fee totals $4 per person, rising to $4.50 per person for passengers between one million and 1.5 million, up to $5 per passenger for more than 1.5 million passengers, with a minimum performance guarantee of $8m per year and Lotte agreeing to a minimum capital investment of $2.5m, with approximately $2m dedicated to the Gucci boutique.