PORT CHARLOTTE, Fla. — Ahead of the Sunseeker Resort's pending sale, Allegiant Travel Company announced their 2025 second quarter financial results.
The results showed the resort overlooking Charlotte Harbor continued to lose money. In the three months ending on June 30, the Sunseeker had an operating income loss of $110 million.
In the report Chief Executive Officer Gregory Anderson said the company is shifting their focus back to air travel.
"Our team is simplifying the business and focusing on our core strengths, as evidenced by the pending sale of our Sunseeker Resort, which is expected to close shortly." Anderson said.
The company said in the report, second quarter occupancy was at 51 percent with an average daily rate of $225 per night.
This is a big drop from the first quarter where the company reported a 70 percent occupancy rate.
The average room rate was also higher at $284 in Q1.
The company said that during the third quarter, it announced a contract for the sale of Sunseeker Resort for $200 million stating that it was "subject to certain adjustments."
The company did not list the adjustments but did say the transaction is "expected to close" during the third quarter.
To explain their current balance sheet Allegiant said they recorded a special charge of $102.2M due to the pending sale of Sunseeker Resort and Aileron Golf Course.
The company said in the financial report the number reflects a write-down to fair value less estimated costs to sell.
This means the company is recognizing that the $200 million sale price is significantly less than the book value they had been carrying on their balance sheet.
As Fox 4 has previously reported, it cost Allegiant $700 million to build.
The size of this write-down suggests the company invested significantly more in the property than they will recover through the sale.
It hasn't been without difficulty.
This 22-acre luxury resort finally opened in December 2023 after pandemic delays and a construction fire. With 785 rooms, multiple restaurants, three pools, and a golf course, the resort said its goal was to be a tourism magnet for Charlotte Harbor.
But multiple hurricanes have made it difficult.
During Allegiant's earnings call earlier this year, the company reported a $321 million impairment charge -- meaning a value decrease, $5.7 million in damages just from Hurricanes Helene and Milton.
And now, with the company struggling to remain profitable with Sunseeker on the Balance sheet, announced the sale in early July. The buyer is Blackstone Real Estate.
Senior Managing Director Scott Trebilco calls Sunseeker "a brand new, highly-amenitized resort," saying his team will "bring our extensive experience with large scale resorts to Sunseeker."
As Fox 4's Alex Orenczuk has previously reported, experts say Blackstone knows how to operate and "didn't buy this to lose money."
