Allegiant announces Sunseeker Resort Charlotte Harbor is up for sale
Allegiant Travel Co. has made the decision to put the Sunseeker Resort in Charlotte County up for sale, not long after completing the ambitious $650 million project less than 15 months ago. The luxurious 785-room resort, situated on 22 acres along Charlotte Harbor, faced numerous setbacks, including delays and budget overruns throughout its construction process. The project, which began in 2019, experienced interruptions twice, firstly amidst the COVID-19 pandemic in 2020, and once more following the destruction caused by Hurricane Ian in September 2022.
The company disclosed its intention to sell off at least a majority interest in the resort through filings with the Securities and Exchange Commission, subsequent to the release of its fourth quarter and annual earnings report. Allegiant Travel Co. CEO Gregory Anderson highlighted in the earnings report that the resort is projected to generate approximately $2 million in earnings for the first quarter of 2025, marking a substantial improvement from the same period in 2024.
Moreover, the company stated that the resort had an occupancy rate of 54% and an average daily rate of $238. However, it also revealed a noteworthy $321.8 million impairment charge linked to the Sunseeker Charlotte Harbor property. This setback followed damages amounting to $5.7 million incurred from the impact of Hurricane Helene and Hurricane Milton during the previous autumn, as outlined in the earnings report.
The decision to sell off the Sunseeker Resort signifies a strategic move by Allegiant Travel Co. as it evaluates its investment portfolio amidst challenging circumstances and unforeseen challenges. While the luxurious resort boasts a prime location and a significant number of rooms, the company is considering divesting its assets to mitigate financial losses and optimize its operational efficiency. It is essential to note that the sale of the resort will have far-reaching implications not only for the company but also for the surrounding community and stakeholders involved in the project.