Saturday, May 10, 2025
Allegiant Air is on track to sell the Sunseeker Resort in Charlotte Harbor, Florida, by September 2025. Spanning 22 acres, the resort is located about 30 miles north of Cape Coral and 50 miles south of Sarasota, making it a prime destination for travelers arriving at Punta Gorda Airport (PGD). Despite its desirable location, the resort has faced various challenges that have hindered its success since opening its doors in December 2023.
Allegiant, known for its budget-friendly airline services, plans to divest a majority stake in the Sunseeker Resort as part of a strategic move to streamline operations and refocus on its core aviation business. The decision to sell marks a shift away from the resort, despite Allegiant’s longstanding ties to the southwest Florida region. For over a decade, Allegiant has been a key player at Punta Gorda Airport, contributing to significant growth in both air traffic and regional development. The Sunseeker Resort was originally envisioned as an extension of Allegiant’s services, offering a luxurious accommodation option for travelers flying into the area. However, the resort has struggled with several operational issues that have affected its profitability.
The Sunseeker Resort project was initiated as a $650 million development, but its path to completion was far from smooth. The project, which began in 2019, experienced numerous delays, cost overruns, and setbacks. The COVID-19 pandemic had a substantial impact, causing construction to come to a halt in 2020 as the country faced widespread lockdowns and restrictions. Additionally, Hurricane Ian hit the region in September 2022, inflicting significant damage to the property and delaying the resort’s opening. Despite these hurdles, the resort finally opened in late 2023, only to be further impacted by hurricanes that caused additional damage in 2024.
Hurricanes Helene and Milton resulted in nearly $6 million in damages in 2024, further straining the resort’s ability to turn a profit. However, the 785-room resort has seen some improvement in occupancy rates. By the first quarter of 2025, the resort’s occupancy rate reached 70%, a notable increase from earlier months. In 2024, occupancy remained relatively low, averaging around 40%, before climbing to 54% later in the year. While the resort’s occupancy rates are still improving, it has yet to reach its full potential.
In terms of revenue, the resort’s financials show a mixed picture. The Sunseeker Resort generated $31 million in revenue in the first quarter of 2025, an increase from $24 million in the previous year. Operating expenses, however, remain high, amounting to $27 million in Q1 2025, down from $33 million in the same period in 2024. These figures underscore the challenges that come with running a large-scale luxury resort, particularly one that has faced construction delays, natural disasters, and other disruptions.
The decision to sell the Sunseeker Resort aligns with Allegiant’s broader business strategy. The airline company has experienced steady growth in recent years, with its overall earnings increasing by more than 6% year over year. By selling the resort, Allegiant aims to refocus its efforts on the airline segment of its business, which has proven to be the most successful and profitable part of its portfolio. Allegiant has established itself as a low-cost carrier with an expanding network of flights, and the sale of the resort will allow the company to concentrate resources on growing its airline services.
Allegiant’s decision to divest the resort also reflects the company’s commitment to aligning its investments with its core competencies. The Sunseeker Resort, while strategically located near Punta Gorda Airport, has not proven to be as profitable as initially anticipated. The resort’s remote location, far from the beach, has been cited as a key disadvantage by some guests. While the resort is within a short distance of the airport, its appeal is limited for travelers who prefer beachfront properties. However, the Sunseeker Resort does offer all-inclusive vacation packages that cater to guests who prefer to stay on-site and enjoy the resort’s amenities, rather than exploring the surrounding area.
For Allegiant, the Sunseeker Resort represents a non-core asset that is no longer aligned with its long-term goals. The company is focused on expanding its low-cost flight network, and selling the resort will allow it to concentrate on its core aviation business. The decision to move forward with the sale of the property is part of Allegiant’s broader strategy to streamline its operations and invest more heavily in its airline services, which have driven the company’s success.
While Allegiant moves forward with its plans to divest the Sunseeker Resort, the future of the property is uncertain. Allegiant has already put the resort up for sale, and several potential buyers have expressed interest. The sale process is expected to be competitive, with multiple parties vying for ownership of the resort. Allegiant aims to finalize the sale by September 2025, and the outcome will determine the next chapter for the property.
As Allegiant focuses on its airline business, the Sunseeker Resort will likely see a change in ownership, and its future direction will depend on the vision of its new owners. The resort has shown some positive signs in recent months, with increasing occupancy rates and revenue growth. However, it has yet to achieve the level of success that Allegiant had hoped for when it embarked on the ambitious project. With new ownership, the resort could potentially thrive and address some of the operational issues that have hindered its performance thus far.
In conclusion, Allegiant’s decision to sell the Sunseeker Resort represents a shift in the company’s focus from its real estate investments to its airline services. Despite significant challenges during its construction and early operation, the resort has shown signs of recovery, with increasing occupancy and revenue. However, it remains clear that the resort is not a core asset for Allegiant, and the company is now seeking to divest it to focus on its airline business. As the sale process unfolds, the future of the Sunseeker Resort will be determined by the next owner, who will have the opportunity to realize its potential and overcome the obstacles that have thus far limited its success.
