Blackstone Buys Sunseeker Resort for $200M

Allegiant Travel Company has agreed to sell its underperforming Sunseeker Resort Charlotte Harbor in Florida to Blackstone Real Estate for $200 million, well below the $700-$720 million Allegiant invested in developing the property. The 785-room waterfront resort, which opened in December 2023 after years of delays and cost overruns, struggled with low occupancy and did not fit Allegiant's core airline business. The sale, expected to close in the third quarter, marks Allegiant's exit from the hospitality sector as it shifts focus back to aviation, planning to use the proceeds to reduce debt and strengthen its balance sheet. Blackstone, a major real estate investor, aims to revitalize the resort and sees long-term value in the property and the hospitality sector. The acquisition underscores Blackstone’s confidence in group-oriented destinations. Allegiant's move is viewed as a strategic effort to streamline operations and improve profitability by shedding non-core assets.