Occupancy at Port Charlotte's Sunseeker nearly doubles as sale nears

As Allegiant Travel Co. continues to work on selling all or some of its Sunseeker Resort Charlotte Harbor, occupancy at the property in the early months of the year nearly doubled when compared with a year ago.

Allegiant announced late Tuesday that occupancy hit 70% in the first three months of the year. That’s up from the “roughly 40%” it reported just a year ago.

The average daily room rate for the first quarter this year was $284 per night compared with $330 per night during the same period last year.

Micah Richins, the resort’s president, told investors on an earnings call Tuesday evening that the increase in occupancy is “tightly related to how well we do with group business and putting that group business on the books in advance.”

“It’s absolutely sustainable on a go-forward basis. You can always consider (the first quarter) to be the strongest of the quarters in the year for sure,” he says. “That is the model going forward.”

The resort, which opened three years late and $225 million over budget Dec. 15, 2023, struggled its first year in business. The 785-room resort only topped the 40% occupancy rate once in 2024. That was in the fourth quarter where occupancy hit 54% buoyed in part by locals escaping back-to-back hurricanes.

Given its issues at the Sunseeker, Allegiant announced earlier this year that it was looking to sell all or some of the resort.

Greg Anderson, the Las Vegas airlines president and CEO, told investors on Tuesday’s call that negotiations with “the best suited counterparties” are moving along well and that an announcement should come in the summer.

Given “the nature of the discussions we’re in, I should probably just leave it at that,” he says.

“But the positive is we do remain on track.”

The Sunseeker has vexed Allegiant officials for years now. It was first seen as an evolution for the company, but numerous construction shutdowns over the years, including for Covid and because of Hurricane Ian, pushed it far over budget and far past its original deadline.

When it finally opened, visitors didn’t initially flock as expected and then when they did, Hurricanes Helene and Milton late in the year.

The airline recorded a $321.8 million impairment charge on Sunseeker in the fourth quarter of last year.

Given the troubles, Allegiant announced in February that after a strategic review it was selling off selling “at least” a majority of its stake in the resort.

A sale, Anderson reiterated in Tuesday evening’s call with investors, will allow the company to concentrate on air travel.

“We recognize our core competencies lie within the airline business where we see abundant opportunity and long-term success,” Anderson said.

Allegiant’s total revenue for the first quarter, which ended March 31, was up 6.5% to $699.1 million from $656.4 million a year ago.

As for Sunseeker, the company reported its earnings before interest, taxes, depreciation and amortization was $4.8 million compared with a $4.6 million loss during the same period last year.