Las Vegas-based Allegiant Travel Co. retained Prospect Hotel Advisors LLC consulting services to conduct a financial review of the Allegiant-owned Sunseeker Resort Charlotte Harbor, company officials confirmed.
Investors received a note July 31, informing them the review will examine ways to improve Sunseeker Resort’s “financial performance and help accelerate the strategic positioning of the hotel in conjunction with the existing experienced management team.”
Allegiant Travel President and incoming CEO Gregory C. Anderson, who will succeed longtime CEO Maurice J. Gallager Jr. in September, said Prospect’s input to increase “strategic alternatives will be the key as we identify the right path forward.”
A spokesperson for the company that also owns Allegiant Air didn’t comment on why the outside consulting firm was needed or the current booking status for the upcoming season.
Sunseeker reported total operating revenues of $16.8 million during its second quarter of operation. Occupancy was roughly 35%, with an average daily rate of $260 per night, according to a July 31 earnings call.
“We continue to believe this one-of-a-kind resort holds greater value than currently reflected,” current Allegiant chairman and CEO Maurice J. Gallagher Jr. said during the earnings call. “To realize its full potential, however, we have engaged Prospect Hotel Advisors to conduct a strategic review of the property. Additionally, we now expect to receive up to $10 million of business interruption insurance for the full year 2024 due to delays in opening the resort. This will offset our expected full-year EBITDA loss of $25 million, reducing our cash loss estimate to approximately $15 million.”
Sunseeker Resort Charlotte Harbor suffered numerous setbacks before it opened in December 2023, three years later than planned and about $225 million over budget. The pandemic caused work to come to a halt, and the once-busy construction site soon became void of workers until the state lifted the shutdown of businesses due to COVID-19.
During construction work, there were a couple of contained fires on–site, but the biggest setback came from Hurricane Ian on September 28, 2022. Giant cranes and scaffolding were blown into the south side of the massive structures, causing $35 million in damages. Completion was delayed for three more months.
The resort has 785 hotel rooms, including 189 signature Sunsuites, 20 restaurants and bars, including the 25,000-square-foot Harbor Yards Food Hall, two pools, a spa and salon, a 7,100-square-foot fitness center, an adults-only rooftop retreat and 60,000 square feet of meeting space.
There is also an 18-hole golf course, the Aileron Golf Club located off Kings Highway in Port Charlotte, which is exclusive to members and hotel guests.
The resort encompasses 22 acres and the buildings are nine stories, with 941,922 square feet of total ground-floor area and a 2,300–linear–foot waterfront promenade that winds along the Peace River in Charlotte Harbor.
Other components include a parking structure, conference center and meeting rooms, and there is a design plan for a future marina.
