Allegiant Travel Co.’s Sunseeker Resort Charlotte Harbor in Florida is currently undergoing major financial challenges. During a recent Q2 earnings call, Allegiant’s executive chairman and outgoing CEO Maurice Gallagher expressed that “all options,” including the potential sale of the property, are being considered. The resort is projected to experience a cash loss of around $15 million this year under the leadership of president Gregory Anderson.
The property’s second-quarter total operating revenues were $16.8 million, but its occupancy rate was only at about 35%, with an average daily rate of $260 per night. Anderson acknowledged that the financial results of Sunseeker are falling short of expectations. To address these issues, the company has engaged Prospect Hotel Advisors to conduct a strategic review of the resort. Given Prospect’s successful track record in managing and selling resort properties, Allegiant is hopeful that their expertise will help turn things around.
Allegiant launched the 785-room Sunseeker Resort Charlotte Harbor as its first venture into the hotel industry in December. The 22-acre waterfront complex features 20 food and beverage options, two pools, a fitness center, spa, retail outlets, and 60,000 square feet of meeting and conference space. Additionally, the property is home to the Aileron Golf Club and golf course. Despite its promising features, the resort has faced numerous setbacks since its inception.
Initially proposed in 2017, construction on the Sunseeker Resort began in 2019 with an expected two-year timeline. However, various challenges, such as the global pandemic and the impact of Hurricane Ian in 2022, significantly prolonged the construction process. This timeline extension has undoubtedly contributed to the financial struggles that the resort is currently facing.
The Sunseeker Resort Charlotte Harbor is grappling with financial difficulties, leading Allegiant Travel Co. to explore various options, including a potential sale of the property. With the appointment of Prospect Hotel Advisors to conduct a strategic review, Allegiant is optimistic about the resort’s future prospects. Despite the setbacks faced during construction and unforeseen challenges, there is hope that the resort can overcome its current financial woes and emerge stronger in the future.