The companies recommended by review teams as part of the concessions overhaul planned at George Bush Intercontinental (IAH) and William P. Hobby (HOU) include a Turkish-based duty-free company making its entry into North America and the airport system’s first Airport Concessions Disadvantaged Business Enterprise prime operator in LaTrelle’s Management Corp.
LaTrelle’s also was selected as a subcontractor in one other package and as a joint venture partner in two additional packages.
The review teams made recommendations on nine packages: three retail, two specialty coffee and two food and beverage packages at IAH and two retail packages at HOU, according to Houston Airport System documents.
There were 26 new ACDBE program participants who were involved in proposals, seven of which were selected. Participation in the winning proposals, which came in both the joint venture and sub-contracting format, ranged from 26 percent to 56 percent.
The Houston Airport System projects that revenue generated by the selected concessionaire teams will rise above $1.5 billion during the life of the 10-year contracts, with 39 percent, or $585 million, generated by ACDBE firms.
“Minority participation was in the forefront of our expectation for success,” says Mario Diaz, director of the HAS, says in a memo.
This process marks the first time, Diaz adds, that the Houston Airport System has selected an ACDBE as a prime developer responsible for multiple locations.
HG Houston Retailers JV received the highest score during initial evaluations on IAH Retail Package 1, but the evaluation committee asked that firm and WDFG North America LLC, made up of World Duty Free Group and joint-venture partner The Houston 8 Team, to take part in oral interviews and answer a series of questions. After the follow up, evaluators decided to recommend WDFG North America.
Paradies – IAH, which includes Paradies and five joint-venture partners, was recommended for IAH Retail Package 2. The joint venture partners are LaTrelle’s Galley, the Law Office of Darryl Carter, Branch/McGowen Ventures, PMG Group and H&G Consulting and Publishing.
ATU Americas, a joint venture between Turkey-based ATU Turizm Isletmeciligi A.S. and Air Ventures, was selected from five respondents who submitted proposals for the IAH Retail Package 3. Air Ventures will have 26 percent participation in the venture.
HMSHost Corp. and joint-venture partner Blue Ginger Ventures Inc. were recommended for IAH Specialty Coffee Package 1. Blue Ginger was proposed at 37 percent participation. LaTrelle’s Galley was selected as the prime contractor for IAH Specialty Coffee Package 2. Because of the company’s ACDBE status, that package will result in 100 percent minority participation.
HMSHost was recommended for IAH Food and Beverage Package 1. The Houston 8 Team, which includes local NBA legend Clyde Drexler, will provide 38 percent participation as Host’s ACDBE joint-venture partner.
SSP America was recommended for IAH Food and Beverage Package 2. The company has seven ACDBE joint-venture partners (Azteca, Cafe Adobe Investments, JDDA Concession Management, Charles Bush Consulting, Branch McGowen Ventures, Creative Concourse Concessions and KHG Consulting) and four ACDBE subtenants (LaTrelle’s, Express NSB, JDDA and Bergeron Management Services) as part of its bid.
World Duty Free Group, with joint-venture partner Branch/McGowen providing 36 percent minority participation, was selected for Hobby’s first retail package. Paradies, with joint-venture partners LaTrelle’s, Law Office of Darryl Carter, Creative Concourse Concessions, TBK Food LLC and Cediel Concessions Management providing 35 percent ACDBE participation.
The recommendations have been forwarded to the Houston City Council, which must vote to approve them.
