Port Charlotte's Sunseeker resort sold for $200 million

The Sunseeker Resort Charlotte Harbor has sold for $200 million to Blackstone Real Estate.

The Allegiant Travel Co. announced the sale Monday morning after saying for months that it was looking to either sell of the property or find a partner to operate it with.

The cash sale is expected to close in September.

The $695 million 785-room resort, which opened in December 2023 — three years late and $225 million over budget — was originally seen as an opportunity for the Las Vegas company to diversify. But a slew of issues, from construction delays due to Covid and hurricanes, and low occupancy rates early on, led Allegiant to place it for sale earlier this year.

Gregory C. Anderson, Allegiant’s CEO, says in Monday morning’s statement announcing the sale that the deal supports “Allegiant's strategy centered around the airline and we plan to use the proceeds from the sale to repay debt and strengthen our balance sheet.”

While Allegiant has struggled with the property, Blackstone has bought an asset with a potential to thrive. Local tourism officials have been actively marketing it overseas and believe their efforts will soon show results.

And, in a bit of rare good news that could bode well for the new owners, Allegiant in its May earnings report announced that occupancy hit 70% in the first three months of the year, up from the “roughly 40%” it reported just a year ago. It also reported that Sunseeker earnings before interest, taxes, depreciation and amortization, was $4.8 million compared with a $4.6 million loss during the same period last year.

As for Blackstone, the global firm has $320 billion of investor capital under management with investments in logistics, data centers, residential, office and hospitality.

Allegiant’s total revenue for the first quarter, which ended March 31, was up 6.5% to $699.1 million from $656.4 million a year ago.

The Sunseeker has 785 rooms, two pools, a spa and salon, a 117,000-square-foot “ground level experience,” an adults-only rooftop retreat, 60,000 square feet of meeting space, a harbor walk, 20 restaurants and bars and the 18-hole golf course.