Allegiant Plans Majority Sale of Sunseeker Resort Due to Financial Struggles

Allegiant Travel Co. has announced plans to sell a majority stake in its Sunseeker Resort in Port Charlotte, Florida, less than 15 months after its opening. The resort, which cost over $650 million to develop, has struggled with financial performance, reporting a $322.8 million impairment charge and a net loss of $216.2 million in its latest earnings report. Despite an occupancy increase to 54% and an average nightly rate of $238, the resort's financial results have consistently fallen short of expectations, with initial occupancy rates plummeting as low as 34%. The company has already received interest from several potential investors and expects to conclude the sale by summer. Allegiant's CEO, Gregory Anderson, noted that the property is projected to generate $2 million in earnings for the first quarter of 2025. The resort faced numerous challenges during construction, including pandemic-related delays and hurricanes, which ultimately contributed to its financial woes.