ALLEGIANT LOOKS TO OFFLOAD TROUBLED SUNSEEKER RESORT THIS SUMMER

(Bloomberg) -- Allegiant Travel Co. expects to wrap up the sale of its troubled Sunseeker Resort this summer after having expressions of interest from potential buyers, including what the company’s chief executive officer called “well-known, high-quality” investors.

A “high-single digit” number of investors are considering making a bid for the resort in Port Charlotte, Florida, Allegiant CEO Greg Anderson told investors on a quarterly conference call Tuesday. Allegiant, the parent of Allegiant Airlines, hired advisers in July for the sale of at least part of the $720 million resort. The 785-room property was built over budget and four years behind schedule, and has struggled to produce sufficient returns. 

“We’re in a more advanced step now than we were a month ago, meaning we’ve narrowed it down and are really focusing on advanced due diligence and discussions,” Anderson said. “We’ve learned that investors want a seat at the table to determine who that distribution partner is, or that flag, the Marriott, the Hiltons and the likes.”

A spokesperson for Allegiant said the CEO was citing examples of hotel chains that could possibly become a branding partner, but that any such relationships would not be decided upon until an agreement is reached with a buyer or outside investor.

The company recorded a $322 million impairment charge from Sunseeker in the final quarter of 2024, which was a $3 drag on its annual per-share earnings. Allegiant wants to sell “at least a majority” stake in the resort, which Anderson expects to produce about $2 million in earnings before interest, taxes, depreciation and amortization this quarter.

Most Read from Bloomberg

©2025 Bloomberg L.P.

2025-02-05T00:15:56Z