Las Vegas-based Allegiant Travel Co. expects to sell Sunseeker Resort Charlotte Harbor, which opened in 2023, to a “high-quality” hotel or resort brand by early summer, Allegiant CEO Greg Anderson revealed during a Feb. 4 conference call.
Anderson said Allegiant has been in talks with “a high single-digit number of investors” who are interested in purchasing Sunseeker, adding that either all of the resort or a majority stake will change hands and a major brand, such as Hilton or Marriott, will fly their flag at the resort.
Interested parties toured the property and are very positive about it, he said during a question-and-answer period with investment firm representatives.
In addition to its 785 hotel rooms including 189 signature Sunsuites, the resort opened with 20 restaurants and bars, including the 25,000-square-foot Harbor Yards Food Hall, two pools, a spa, salon, a 7,100-square-foot fitness center, an adults-only rooftop retreat and 60,000 square feet of meeting space.
The resort was beset with problems shortly after Allegiant broke ground in 2019 on the Charlotte Harbor land it purchased for $30 million.
Slated to open in 2020, Sunseeker suffered numerous setbacks before it opened three years later than planned and some $225 million over budget, for a cost of more than $700 million. Construction was halted for 17 months due to the pandemic, and Hurricane Ian in September 2022 caused giant cranes to crash into the building, causing $35 million in damage. There was an on-site fire in February 2023 that shut down construction again.
The resort opened in mid-December 2023, but in September and October 2024, hurricanes Helene and Milton caused approximately $5.7 million in damage reported as a special charge on Allegiant’s fourth quarter income statement.
The resort’s high construction cost and low occupancy rates affected Allegiant Travel Co.’s bottom line and were reflected in earnings reports.
Sunseeker’s underperformance prompted the company to retain Prospect Hotel Advisors LLC consulting services last summer to conduct a financial review of the resort.
Investors received a note July 31, informing them the review would examine ways to improve Sunseeker Resort’s “financial performance and help accelerate the strategic positioning of the hotel in conjunction with the existing experienced management team.”
Since the fourth quarter, when Sunseeker had an occupancy rate of 54% and an average room rate of $238 per night, results improved in the first quarter of 2025 when occupancy rose to 60% with an average room rate of $320 per night.
Charlotte County officials welcomed Sunseeker from the time the project was announced. It lost hotel and motel rooms during Hurricane Ian, including the Punta Gorda Waterfront Hotel in downtown Punta Gorda.
The county benefits from each hotel night stay, as it receives a TDT tax, a 5% charge on revenue collected on the rental of living quarters or accommodations rented for a period of six months or less.
Because of the loss of Charlotte County hotels, motels, Airbnbs and Vrbos, there had been a lack of rooms for visitors and tourists, especially during special events, such as the Florida International Air Show and sports-related events.
It was projected that Sunseeker would boost the county’s TDT revenue by $1 million or more annually.
Charlotte County Tourism Director Sean Doherty said TDT tax collections improved with the opening of Sunseeker Resort Charlotte Harbor. The resort “mitigated the loss of approximately 250 hotel rooms that we lost to Hurricane Ian,” he said.
Allegiant Travel Co. decided to cut ties with its resort holding to boost its bottom line and earnings for shareholders.
“We finished the year strong with a fourth quarter adjusted airline-only earnings per share of $3,” Anderson said. But an impairment charge of $321.8 million was recorded during the fourth quarter of 2024 due to Sunseeker Resort.
Anderson said that due to the uncertainty of when the resort will be sold, “we will only be providing guidance for Sunseeker on a quarterly basis.”