Allegiant Travel Co. lists Sunseeker Resort Charlotte Harbor for sale
Allegiant Travel Co. has decided to put its Sunseeker Resort in Charlotte County on the market for sale, as revealed in recent filings with the Securities and Exchange Commission. The luxury resort, encompassing 785 rooms and spanning 22 acres on the beautiful Charlotte Harbor, faced numerous challenges during its construction phase, which commenced in 2019. Delays and unexpected cost overruns plagued the project, leading to interruptions that caused the five-year construction timeline to extend significantly. The COVID-19 pandemic in 2020 forced a temporary halt, and further setbacks followed when Hurricane Ian caused damage to the property in September 2022.
Despite these obstacles, Allegiant Travel Co. completed the ambitious development less than 15 months ago. With the resort now operational, the company recently released its fourth-quarter and annual earnings report, signifying a decision to explore selling a majority interest in the property through a competitive process. CEO Gregory Anderson highlighted in the report that Sunseeker Resort is expected to contribute approximately $2 million in earnings for the first quarter of 2025, reflecting a substantial $7 million improvement compared to the same period in the previous year.
The resort currently maintains a 54% occupancy rate, with guest bookings driving an average daily rate of $238. However, the company also disclosed a notable $321.8 million impairment charge associated with the Sunseeker Charlotte Harbor property. This financial adjustment follows significant damages incurred by the resort due to the impacts of recent hurricanes Helene and Milton, totaling $5.7 million in repair costs. Despite these challenges, Allegiant Travel Co. remains committed to maximizing the resort’s value and ensuring a successful transition to new ownership.
The decision to sell Sunseeker Resort marks a strategic move by Allegiant Travel Co. to secure optimal returns on its investment in the luxury hospitality sector. By initiating a competitive sales process for the property, the company aims to attract potential buyers that recognize the long-term potential and value of the resort. The upcoming transaction presents an opportunity for interested investors to acquire a stake in a premier waterfront destination with a strong revenue-generating capacity and a solid foundation for future growth.
As the resort enters a new phase of its development journey, Allegiant Travel Co. remains focused on navigating the complexities of the real estate market and capitalizing on emerging opportunities within the hospitality industry. The decision to divest from Sunseeker Resort underscores the company’s commitment to strategic portfolio management and financial prudence, aligning with its broader objectives of enhancing shareholder value and driving sustainable growth across its diverse business ventures.
