Allegiant Travel Co.’s Sunseeker Resort Charlotte Harbor in Florida is currently experiencing significant financial challenges. The resort is expected to incur a cash loss of around $15 million this year. The total operating revenues for the property were $16.8 million in the second quarter, with an occupancy rate of only 35% and an average daily rate (ADR) of $260 per night. This financial performance falls short of expectations, as expressed by Allegiant’s president Gregory Anderson during a recent earnings call.
Exploring All Options
During the Q2 earnings call, Allegiant’s executive chairman and outgoing CEO Maurice Gallagher mentioned that “all options” are being considered, including a potential sale of the property. The resort’s financial challenges have prompted the company to take action in order to address the situation. Gregory Anderson, who will be stepping into the role of Allegiant CEO, highlighted the need for a strategic review of the Sunseeker Resort Charlotte Harbor. To facilitate this process, the company has enlisted the expertise of hospitality asset management firm Prospect Hotel Advisors.
Project History and Obstacles
Allegiant’s Sunseeker Resort Charlotte Harbor was inaugurated as the company’s first hotel venture in December of last year. The expansive 22-acre waterfront complex boasts 785 rooms, 20 food and beverage establishments, two pools, a fitness center and spa, retail outlets, and extensive meeting and conference facilities. Additionally, the property features the Aileron Golf Club and golf course. Despite these impressive amenities, the resort has encountered several obstacles since its inception.
Allegiant initially announced plans for the Sunseeker Resort in 2017 and began construction in 2019, anticipating a two-year timeline for completion. However, various challenges, such as the COVID-19 pandemic and the impact of Hurricane Ian in 2022, have significantly delayed the project. These unforeseen circumstances have hindered the resort’s ability to achieve its full potential and have contributed to its current financial struggles.
The Sunseeker Resort Charlotte Harbor is facing significant challenges due to its financial performance and operational difficulties. Allegiant Travel Co. is actively exploring strategic options to address these issues and improve the resort’s overall outlook. Despite the setbacks faced by the property, there is potential for recovery and success with the right initiatives and management strategies in place.