Allegiant Travel Company has announced plans to sell at least a majority stake in its Sunseeker Resort Charlotte Harbor, citing financial underperformance since the resort’s opening in late 2023.
Despite efforts to improve operations, the 785-room Florida luxury resort has struggled to meet revenue expectations, prompting Allegiant to seek investor interest.
This move aligns with broader Florida tourism and hospitality trends, as outlined by the Florida Department of Economic Opportunity (DEO) and the Florida Tourism Industry Marketing Corporation, both of which track market performance and investment opportunities in the state’s tourism sector.
Sunseeker Resort’s Financial ChallengesIn its Q4 2024 earnings report, Allegiant reported a $322.8 million impairment charge for Sunseeker Resort Charlotte Harbor, leading to an overall net loss of $216.2 million.
This loss contrasts sharply with the company’s airline operations, which generated an operating income of $78.1 million in Q4.
During a Q2 earnings call, Allegiant’s leadership acknowledged that the resort’s financial results were not meeting expectations. Key performance indicators highlighted its underperformance:
Occupancy Rate (Q2 2024): 35%Average Room Rate (Q2 2024): $260 per nightWhile the resort improved to 54% occupancy and lowered its average room rate to $238 per night in late 2024, it remained below company targets.
Hurricane Impact on Resort OperationsAdding to its financial struggles, Sunseeker Resort Charlotte Harbor suffered nearly $6 million in damages from Hurricanes Helene and Milton in 2024.
The Florida hospitality industry has been significantly affected by climate-related disruptions, prompting state agencies such as Florida’s Division of Emergency Management (FDEM) to implement disaster recovery strategies for businesses impacted by severe weather events.
Investor Interest & Future of Sunseeker ResortAllegiant stated that it has begun reviewing promising indications of interest from potential investors.
The company’s move to sell a majority stake in Sunseeker aligns with trends in the Florida real estate and hospitality investment sector, where luxury resorts are attracting institutional and private equity investors.
The sale of Sunseeker Resort Charlotte Harbor is expected to reshape Allegiant’s financial strategy, allowing the company to focus on its core airline operations while ensuring the resort remains viable under new ownership or investment structures.
