Allegiant Travel Co.'s Sunseeker Resort Charlotte Harbor in Florida is facing major financial challenges, with Allegiant's executive chairman and outgoing CEO Maurice Gallagher telling analysts that "all options," including a potential sale of the property, "are on the table" during a Q2 earnings call last week.
According to president Gregory Anderson, who is succeeding Gallagher as Allegiant CEO this year, the resort expects to see a cash loss of approximately $15 million this year.
The property's total operating revenues were $16.8 million in the second quarter, while its second-quarter occupancy was roughly 35%, with an ADR of $260 per night.
"Clearly, Sunseeker's financial results are not meeting expectations," said Anderson, who added that the company has tapped hospitality asset management firm Prospect Hotel Advisors to spearhead a strategic review of the Sunseeker Resort Charlotte Harbor.
"Given Prospect's team's proven track record of positioning and selling many resort properties, we look forward to leaning into their expertise," he added.
Allegiant opened the 785-room Sunseeker Resort Charlotte Harbor as the company's inaugural hotel venture last December. The 22-acre, waterfront complex is also home to 20 food and beverage concepts, two pools, a fitness center and spa, retail outlets and 60,000 square feet of meetings and conference space, as well as the Aileron Golf Club and golf course.
Since its inception, however, the Sunseeker Resort has encountered significant obstacles. Allegiant first unveiled plans for the property in 2017 and broke ground on the project in 2019. While the company originally anticipated a two-year construction period, several challenges, including the pandemic and impact from 2022's Hurricane Ian, substantially extended that timeline.