Blackstone said to be in talks to buy embattled Allegiant resort

BLACKSTONE is in talks to purchase Allegiant Travel’s Sunseeker resort, moving the parent of Allegiant Airlines closer to shedding the beleaguered retreat that had been a drag on earnings, according to people with knowledge of the matter.

The two companies are still negotiating and talks could fall apart, said the people, who asked not to be identified because the information is not public. It was not immediately clear what price is being discussed. 

Representatives for Allegiant and Blackstone declined to comment.

Blackstone last month registered an entity named Sunseeker Resort Owner LLC with the Florida Division of Corporations, along with others named Sunseeker Expansion I LLC, Sunseeker Expansion II LLC and Sunseeker Golf Owner LLC.

Allegiant built the resort in Port Charlotte, Florida, as part of an effort by former chief executive officer John Redmond to extend Allegiant Travel’s hold on consumers beyond arranging trips and flying passengers. 

The 785-room compound was troubled from the start, with construction suspended during the coronavirus pandemic and damage from hurricanes that further delayed work. 

The resort was finished four years late and US$200 million over budget, and occupancy rates did not meet projections. Overall, the campus cost US$720 million to build.   

Allegiant said in July it had hired Prospect Hotel Advisors LLC to advise it on options for the resort, including a sale of all or part of the sprawling property. 

Blackstone is a longtime lodging industry investor. Last year, the company struck deals for the W Fort Lauderdale and the Hyatt Regency Clearwater. It often makes significant investments to upgrade hotels after it buys them. BLOOMBERG