Allegiant Travel Co. is facing a tough road ahead when it comes to their Sunseeker Resort Charlotte Harbor in Florida. The company’s executive chairman and outgoing CEO Maurice Gallagher openly admitted during a recent Q2 earnings call that the resort is in deep financial trouble. He mentioned that they are exploring all options, including the possibility of selling the property to alleviate the situation. The resort is expected to experience a considerable cash loss of around $15 million this year, a significant blow to Allegiant’s financial health.
President Gregory Anderson, who is set to take over as Allegiant CEO, expressed his disappointment in the resort’s financial performance. In the second quarter, the property only generated $16.8 million in operating revenues, with an occupancy rate of about 35% and an average daily rate of $260 per night. Anderson made it clear that the resort’s financial results are falling far short of expectations. As a result, the company has brought in hospitality asset management firm Prospect Hotel Advisors to conduct a strategic review of the resort’s operations.
Allegiant opened the 785-room Sunseeker Resort Charlotte Harbor as its first venture into the hotel industry in December. The resort, located on a 22-acre waterfront complex, offers various amenities such as 20 food and beverage outlets, two pools, a fitness center, spa, retail stores, and meeting spaces. It also includes the Aileron Golf Club and golf course. Despite its promising beginnings, the resort has faced numerous challenges since its inception. Originally announced in 2017, the construction of the property faced several setbacks, including delays caused by the pandemic and the impact of 2022’s Hurricane Ian.
As Allegiant grapples with the financial struggles at Sunseeker Resort, the company is hopeful that the strategic review led by Prospect Hotel Advisors will provide a path forward. With the expertise of Prospect’s team in positioning and selling resort properties, Allegiant is counting on their guidance to turn things around. The future of the Sunseeker Resort remains uncertain, but with the right strategies and decisions in place, there is a glimmer of hope for a brighter future.