Allegiant Travel Company will sell "at least a majority interest" in the Sunseeker Resort Charlotte Harbor because of financial underperformance.
Opened in late 2023, the 785-room Florida resort was Allegiant's first hotel. In its Q4 earnings report, Allegiant disclosed a $322.8 million impairment charge for the Sunseeker, which contributed to a net loss of $216.2 million.
The company's airline operations, meanwhile, had operating income of $78.1 million in Q4.
Allegiant said it has begun "reviewing promising indications of interest" from potential investors.
During its Q2 earnings call, Allegiant's leadership revealed that the Sunseeker's "financial results are not meeting expectations." At that time, the resort was operating at just 35% occupancy, with room rates averaging $260 per night.
While the resort has shown recent improvement, with occupancy hitting 54% and room rates averaging $238 per night in late 2024, its performance continues to fall short of the company's targets.
Also, hurricanes Helene and Milton caused nearly $6 million in damage to the property in 2024, said Allegiant.