Blackstone To Purchase Allegiant Airlines’ Troubled Sunseeker Resort

Las Vegas-based Allegiant Air is selling its under-performing Sunseeker Resort Charlotte Harbor to Blackstone Real Estate for $200 million. The transaction is expected to close in the third quarter of 2025. Blackstone is one of the world’s largest owner of commercial real estate, with $320 billion in investor capital under management, and was one of multiple bidders for the resort property.

Located on 22 acres of waterfront property in Charlotte County, the 785-room resort opened in December 2023 after years of delays and more than $700 million in development costs. Allegiant’s move to divest itself of the property marks the end of its short-lived foray into hospitality as it refocuses on its core airline operations.

The Key Details Of The Deal

Allegiant initially began construction on the troubled Sunseeker property in 2019, but was almost immediately beset by a range of challenges such as the pandemic pausing construction, severe hurricane damage, and even a construction fire. As a result, the luxury resort only opened at the end of 2023, and was significantly over the original construction budget of $600 million. Since then, it has struggled to draw in customers, with the resort barely half-full even during high season.

Part of the challenge is the mismatch between Allegiant, a low-cost airline, and an ultra-exclusive resort that is simply not affordable for most visitors to Florida. But many industry experts have pointed to the location of the property itself as being problematic, with the nearest beach nearly 10 miles away, the nearest retail and restaurants further than that, and the resort not providing any marina access to the surrounding harbor.

Scott Trebilco, senior managing director at Blackstone Real Estate, is confident that his organization has the experience to overcome these challenges and turn things around. Speaking at the announcement of the deal, he said:

“The acquisition of this brand new, highly-amenitized resort demonstrates our strong conviction in hospitality and travel and the continued growth in group-oriented destinations. Allegiant has built a fantastic property, and we look forward to bringing our extensive experience with large-scale resorts to Sunseeker.”

Focusing On Flights To Florida

Sunseeker Resort Charlotte Harbor was intended to be the jewel in the crown for Allegiant’s expansive Florida network. The airline operates 130 aircraft, made up of Airbus A319s and A320s, and a growing number of Boeing 737 MAX aircraft. Outside its network from its home base in Las Vegas, more than 80% of Allegiant flights involve Florida, where the airline now has six operating bases.

The Sunseeker resort is just six miles from Punta Gorda Airport (PGD), near Fort Myers. Allegiant has a large operating base there, with flights to more than 50 destinations and a 96% market share at the airport. The airport has grown rapidly for Allegiant, becoming the fifth-largest in its network with nearly two million passengers last year.

Allegiant dominates at its three largest bases in Florida. It chooses to fly from Sanford in Orlando (with just three routes at MCO), St. Pete-Clearwater rather than TPE, and Punta Gorda rather than the much busier RSW. However, it does face much stronger competition at its other three Floridian bases in Destin, Fort Lauderdale, and Sarasota.

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The Challenges Faced At Sunseeker

Allegiant began construction on Sunseeker in 2019 after acquiring the land for $30 million. Initially slated to open in 2020, the project was beset by setbacks, including a 17-month construction pause during the pandemic. Once work had resumed, the resort took a direct hit from Hurricane Ian in 2022, causing $35 million in damage, and then was subsequently damaged further in a 2023 construction fire.

Despite opening with luxury amenities, including 20 bars and restaurants, a rooftop retreat, a championship golf course, and 60,000 square feet of meeting space, Sunseeker failed to meet financial expectations. For most of 2024, occupancy was in the range of 40%, rising to a 54% occupancy rate in the fourth quarter of 2024.

Year Founded

1997

CEO

Gregory Anderson

While this had improved to 60% in the first quarter of 2025 and the property was reportedly turning a small profit, it was still way off the 80% occupancy rates that are required to start delivering on the substantial investment. This no doubt prompted Allegiant to sell the property, and it is planning to use the $200 million to repay debt and strengthen its balance sheet.