Blackstone to Acquire Allegiant’s Troubled Sunseeker Resort for Just $200 Million

Key Points

• Blackstone is acquiring Allegiant Air’s Sunseeker Resort for $200 million, a significant loss after Allegiant invested $720 million in the property.
• The resort faced high construction costs, hurricane damage, low occupancy rates, and was hampered by its location far from beachfront properties.
• Allegiant struggled with financial losses from the resort, leading to the decision to sell after less than two years of operation.

Summary

Blackstone will acquire Allegiant Air's Sunseeker Resort in Florida for $200 million, a steep discount compared to the $720 million Allegiant spent to develop the property. The resort, which opened in late 2023, faced numerous challenges including high construction costs, hurricane damage, low occupancy rates, and a less-than-ideal location away from the beach. These factors contributed to significant financial losses for Allegiant, prompting the sale to Blackstone less than two years after opening.