Allegiant Travel Company is selling the Sunseeker Resort Charlotte Harbor to Blackstone Real Estate for $200 million. The deal is expected to close in this year's third quarter.
The 785-room Florida resort, Allegiant's first hotel venture, has underperformed since it opened in December 2023. Allegiant's main business is budget airline Allegiant Air.
Since its opening, the property has struggled with low occupancy. During Allegiant's Q2 earnings call in 2024, executives disclosed that the resort was operating at approximately 35% occupancy with an average daily rate of $260. While occupancy improved to 54% by late 2024, performance has continued to fall short of targets.
The company has been exploring strategic options for the resort since mid-2024.
Allegiant CEO Gregory Anderson said Allegiant will use the proceeds from the sale to repay debt and strengthen its balance sheet.
Located on 22 acres along Florida's Gulf Coast, the Sunseeker is home to multiple dining venues, two pools, a spa, a fitness center, a rooftop adult pool and bar, a golf course and more than 60,000 square feet of meeting space.