That basic description for the new Labyrinth movie weirdly makes it clear that Fede Alvarez is the right person for this type of job.
This will (if all goes according to plan) allow the new Labyrinth to carve out a sense of individuality for itself while hopefully still welcoming in old fans of the classic.
That is something that the greatest blockbuster franchises have managed to figure out in recent years: don’t directly adapt or recreate something; just recognize what people enjoy and find ways to enhance.