Key Points
- Blackstone has acquired Allegiant Air’s Sunseeker Resort, which Allegiant had invested $720 millions in. This is a substantial loss for Allegiant after they had invested so much money.
- The resort was plagued by high construction costs, damage from hurricanes, low occupancy rates and its distance from beachfront properties.
- Allegiant’s financial struggles with the resort led to its decision to sell it after only two years.
The following is a summary of the information that you will find on this website:
Blackstone has agreed to purchase Allegiant Air’s Sunseeker Resort, located in Florida. The resort was developed for $720 million by Allegiant. Blackstone is paying $200 million to acquire the resort. This represents a significant discount to what Allegiant had spent on the development. The resort was opened in late 2023 but faced many challenges such as high construction costs and hurricane damage. It also had low occupancy rates and an unfavorable location. Allegiant suffered from significant financial losses as a result of these factors. The resort was sold to Blackstone just two years after it opened.
