HMSHost Wins Food/Beverage Contract at LAX Terminal 8

(Los Angeles, California -- August 22, 2000) Passengers at Los Angeles International Airport (LAX) will soon enjoy new upscale, brand-name food and beverage services at Terminal 8 (United Express commuter service) under a six-year contract awarded today to HMSHost (sic) by the Los Angeles Board of Airport Commissioners.

HMSHost (formerly known as Host Marriott Services) plans to develop a L.A. Roadhouse 66 Bar & Grill, an innovative casual-dining restaurant and bar with a unique Los Angeles-themed atmosphere reminescent of one of America’s most famous roadways. The restaurant will be located in the center of the terminal in 1,860 square feet of space.

In addition, a new 1,680-square-foot food court at the south end of the terminal will contain Boudin Sourdough Bakery (freshly baked breads and pastries, soups, and salads), Gordon Biersch Microbrewery, and Starbucks Coffee.

The new eateries are scheduled to open by this year’s Thanksgiving holiday. Installation of these new concessions follows a major remodeling and renovation of Terminal 8 performed by tenant United Airlines.

"Today’s contract award continues the renaissance we began in 1995 to transition our entire food, beverage and retail merchandise services at LAX to brand-name, upscale offerings that reflect the diversity of Los Angeles while meeting the needs of today’s air travelers," said

Los Angeles World Airports Executive Director Lydia H. Kennard.

Les Cappetta, HMSHost senior vice-president North America Business Development, said, "We are pleased to expand our long-standing partnership with Los Angeles World Airports and are excited to be introducing several new and exciting concepts to the airport."

Cappetta reported that HMSHost is projecting $26.6 million in revenues over the term of this new contract, with an estimated $4.3 million in sales for the first year. The contract calls for HMSHost to invest a minimum $1,210,000 in capital development, as well as pay to LAWA the greater of a minimum annual guarantee of $350,000 (combined for both spaces) or 14 percent of food and non-alcoholic beverage sales and 20 percent of alcohol and logo merchandise sales.

The four new concessions at Terminal 8 will bring to 66 the number of food and beverage outlets at LAX. During Fiscal Year 1999-2000 ending June 30, 2000, LAX food and beverage concessions generated $15.6 million in revenue, up 2.6 percent from $15.2 million a year earlier.