Allegiant Travel Company (NASDAQ:ALGT) stock climbed 3.2%, while Blackstone Inc (NYSE:BX) shares inched up 0.2%, following a Bloomberg report that Blackstone has agreed to acquire Allegiant’s Sunseeker Resort for around $200 million.
According to Bloomberg, the deal could be announced as soon as Monday. The purchase price represents a steep discount compared to the $720 million Allegiant invested in developing the Florida resort, sources familiar with the matter said on condition of anonymity.
Allegiant has been seeking a buyer for the 785-room Port Charlotte resort for about a year. In July 2024, the company formally appointed an adviser to evaluate strategic options for the property. Originally constructed to broaden Allegiant Airlines’ presence in hospitality, the Sunseeker project encountered multiple obstacles.
Cost overruns and a delayed opening—four years behind schedule—were compounded by the impacts of the COVID-19 pandemic and hurricane damage. These challenges led to financial returns below expectations.
The move to sell the struggling asset has lifted investor confidence in Allegiant, while Blackstone gains a hospitality property at a notable discount to its original development cost, further expanding its real estate holdings.