Originally Posted by
PVDtoDEL
He could be saying that the Admiral's Club is not big enough to handle the 500 incremental guests that the AS lounge will be able to serve. There are currently many people flying AS who are entitled to lounge access if there was an AS lounge, but currently wouldn't fit in the Admiral's Club.
Quite possibly, but the context immediately before ("its Admirals Club lounge will likely convert into more food, beverage and retail outlets") and after ("And it's not nearly as dramatic!") led me to read that statement as a justification for why AS picked a new location for their lounge (namely, AC space is too small), instead of renovating the existing AC space into an AS lounge.