Latam Airlines to expand its MIA VIP club

A new lease proposed for the VIP club for Latam Airlines Group at Miami International Airport would add substantially to the club’s space, the club’s use, and the airport’s revenues.

The group would spend $4 million to $5 million to build out its new space, growing the current 10,264-square-foot space of the club on the third floor of Concourse J to 17,884 square feet.

Documents for a county committee vote on the lease this week say that the Latam VIP Club currently averages 180,000 visitors yearly from passengers of the six-airline alliance. “With the additional space, it is estimated that passenger traffic will surpass 1.1 million passengers during its first five years,” documents say.

Commissioners were told that growing use of the club led the airlines to seek more space. After long and complex negotiations, the county documents say, the new lease comes considerably after the former lease expired last November, so the lease is to be signed retroactive to Nov. 1.

A number of set payments including the rent are to bring the airport just short of $1.4 million from Latam. An additional concession fee will pay the airport 18% of monthly gross revenues from liquor sales and “10% of the monthly gross revenues generated from the sale of all other amenities such as VIP conference room rentals.”

In addition, Latam is to pay an “opportunity fee” of 35% of the airport’s base club fee for non-member passengers who purchase a day pass at the VIP Club.

For just the lease items, excluding the opportunity fees and percentages of the club’s sales, the lease is expected to generate more than $36.2 million in revenues to the airport over the five-year lease and two five-year renewal options.