Nashville Airport Opens Bidding For A Massive Credit Card Lounge — Will Amex, Chase, Or Capital One Win?

I revealed last month that Nashville airport would get a bank lounge, and that the airport said they had discussions about it with both American Express and Chase. (I have to think Capital One is looking at it, too.)

American Airlines is replacing its Nashville airport lounge and Southwest has a Nashville lounge in its pipeline, too.

The airport has released the project for bidding. And the airport’s finance committee deck shows details of what they have planned.

The North Mezzanine space will be 20,600 square feet, and they’re offering a 15 year lease, with a minimum buildout investment of $1,000 per square foot ($20.6 million). At seven years in they require a minimum $250 per square foot ($5.15 million) refresh. Rent is a minimum of $250 per square foot with 3% annual escalation, and they take 18% of any day passes or other sales and require at least $250,000 per year in in-terminal advertising.

The following amenities are required: wifi and ‘business services’, charging, private bathrooms, family friendly or gaming area, and a dedicated conference room, as well as premium beer, wine and liquor and non-alcoholic beverages; breakfast, lunch, dinner and snacks ‘which may include’ gluten-free, vegetarian, and vegan options; menu items for children; quiet spaces.

Optional amenities include showers; spa or massage area; multi-faith room; nursing room; yoga or relaxation room; others items as-proposed.

This space would be the same size as Chase’s Philadelphia lounge. It’s 50% larger than Capital One’s New York JFK lounge, which is their largest to date. So which bank will get the space?

• Capital One’s lounges aren’t as large. This is 50% larger than their current largest lounge at New York JFK. They have the best food program, and they’re the most tailored to a sense of place. I have to consider Capital One the dark horse because their footprint is smaller, and their existing lounges are smaller than this – so it isn’t yet clear whether they’d invest in a lounge this size for what’s a vibrant but still secondary market.

• Chase operates lounges of this size, and the airport may score Priority Pass access (versus limited to a bank’s own customers) highly.

• American Express has the largest lounge footprint.

It’s not clear which issuer has the highest willingness to pay in the market. The RFP has been released, and responses are due August 25, with a planned September selection of the winner. We should find out this year whether Nashville gets a Centurion lounge, Sapphire Lounge, or Capital One lounge.