The cost to build the Sunseeker Resort Charlotte Harbor has gone up once again and will now come in at more than $175 million than originally projected.
In an earnings report released Wednesday morning, John Redmond, CEO of Las Vegas-based Allegiant Travel Co., says that because of inflationary pressures and supply chain issues “we expect the final capital expenditure budget to be $695 million.”
“Although we are still working through insurance claims related to Hurricane Ian, we have better line of sight regarding completion and final budget,” Redmond says in the report released ahead of the company’s quarterly earnings call.
The new price tag is at least the third time the company has adjusted the expected cost of the resort in the past 15 months. Sunseeker, which Allegiant is building in Port Charlotte, was originally projected to cost $510 million, but in February 2022 the company said the cost had gone up to $585 million and that rose again later in the year to $618 million.
That the price of building the resort is going up is not a surprise given the changing economic realities since construction began in early 2019 and the fact that work on the project has been delayed twice in the past year, delaying the opening by months. The two delays, once because of damage from Hurricane Ian and once because of a fire on the site, pale in comparison to a 17-month shut down due to COVID.
The newest figure, according to Redmond’s statement, includes the construction of a new golf club that will be part of the resort. It is unclear if the cost of the club, which has been part of the plan since near the beginning but not announced until about a week ago, was included in previous cost disclosures. Allegiant did not immediately respond to a request for comment.
As of now, the resort is scheduled to open in mid-October and Redmond says, “as we enter the final stages of construction, we could not be happier with how the property is progressing.”
When complete, the 785-room resort will have 20 restaurants and bars, two pools, a spa and salon, a 117,000-square-foot “ground level experience,” adults-only rooftop retreat, 60,000 square feet of meeting space, a harbor walk and the 18-hole golf course.
Allegiant reported it first quarter operating revenue was up 29.9% from a year ago to $649.7 million.