PORT CHARLOTTE, Fla. — On Tuesday Allegiant Travel Company, the owner of the Sunseeker Resort announced it would be selling a majority interest in the property.
It comes after a disappointing 2024 for the hotel overlooking Charlotte Harbor. The hurricane season didn't help.
According to fourth quarter financial results released on Tuesday, Allegiant has estimated property damage related to Hurricanes Helene and Milton at $5.7 Million.
The balance sheet also showed a recorded impairment charge of $321.8 Million dollars. An impairment charge is an accounting term used to describe a reduction or total loss of the recoverable value of an asset.
Is the Sunseeker a total loss? Well, occupancy has been an issue since the beginning. As Fox 4 reported in the summer,the resort was only about 34 percent full in the second quarter. But they have made some headway. The company reported that the fourth quarter occupancy was at 54 percent with an average nightly rate of $238. They expect they will be at 60 percent by the end of the first quarter according to the financial report.
"We have progressed meaningfully with our comprehensive review of Sunseeker Resort. As a result we have launched a competitive process to sell at least a majority interest in the resort and are reviewing promising indications of interest from several investors. Given the uncertainty around the timing of any potential transaction, we will only be providing guidance for Sunseeker on a quarterly basis. That said, we expect the property will earn positive EBITDA of $2 million during the first quarter, a nearly $7 million EBITDA swing compared to the same quarter in 2024." Allegiant said in a press release.
The company did pay off an $250 Million dollar construction loan last quarter related to the Sunseeker. And their revenue was up. They made about $18 Million in the last quarter compared to the previous year's $2.8 Million. But their expenses ballooned to over $360 Million. They finished out the quarter with a $342 Million dollar operating loss.
ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL-YEAR 2024 FINANCIAL RESULTS | Allegiant
Allegiant reported a fourth quarter 2024 GAAP diluted loss per share of $(12.00) .
"Exiting 2024, we have turned a corner, setting the stage for an important year ahead. We are focused on performance and strong execution. The progress we've made through our key initiatives, ancillary revenue growth, and enhanced efficiency further strengthened our foundation." Allegiant said in a press release.
The company is focusing on efficiency in 2025.
