Lucy Linet was among the first guests to stay at Sunseeker when it opened a year ago in December. She turned 70 that month and celebrated her birthday in one of the resort’s suites on New Year’s Eve. “It’s absolutely beautiful,” says Linet, who worked nearby as business development director for Punta Gorda’s Military Heritage Museum. “My mouth just dropped when I saw it. We needed something like this.”
Many agree, especially tourism and economic development officials. In Charlotte County, there’s nothing else like it: a $700-million, 22-acre ivory and turquoise-accented resort built, owned and operated by Allegiant Travel Co., a discount airline based in Las Vegas that rocketed to success with its low-cost flights to and from the Punta Gorda Airport (PGD) and other smaller Florida airports. Even if Charlotte County is one of Florida’s lesser-known destinations, PGD has become a regional hub for low-cost vacation travel, fueled almost single-handedly by Allegiant, which continues to expand flight offerings in Florida. PGD accommodated 1.9 million passengers last year and expects to surpass 2 million in 2025, flying to more than 50 cities.
“I think we fit (Allegiant’s) model very well,” says James Parish, the airport’s CEO. “They’re a no-frills airline, and we’re, to be honest, a no-frills airport.”
But the airline belied its discount business model and signature service when it built Sunseeker. There is nothing no-frills about the 785-room resort that aims to compete for group business with all-inclusive destinations in Florida and the Caribbean. Unfortunately, Sunseeker has no beach, some critics point out, but that’s the least of its challenges.
Disruptive forces
When Linet arrived, the resort had finally opened for 2024 over budget, under-booked, behind schedule and headed for a financial tailspin after its development took a one-two punch from the COVID-19 pandemic and Hurricane Ian. It reported a $30 million loss for 2023 due to pre-opening costs.
In a second-quarter earnings call earlier this year, Allegiant’s leadership projected that Sunseeker would lose $25 million in 2024 but would recover $10 million through business interruption insurance. The hotel had only been about 35% full between April and June. Outgoing CEO Maurice Gallagher said that “all options are on the table” to turn Sunseeker’s financial problems around, including selling the property. Allegiant also hired a consulting firm known for selling hotel properties, Prospect Hotel Advisors.
“That hotel was not destined to come out of the gate with really strong financial performance for a variety of reasons,” says Michael D. Collins, an associate professor and interim director of Florida Gulf Coast University’s School of Resort & Hospitality Management in Fort Myers.
Collins, a former hotel and full-service resort property manager, notes that the booking window for large conventions is often two to five years in advance. But the pandemic in 2020 and Hurricane Ian handicapped Sunseeker just when large conventions that need a 785-room hotel might have been looking for one, Collins says. As a result, it opened without that business — and large groups booking now may not pay off for years to come.
Another challenge: Sunseeker doesn’t have brand-name recognition with built-in clients and purchasing power. Moreover, flying large groups to PGD may be a challenge. Allegiant flights are less frequent than major airlines, aimed at leisure travelers whose plans may be more flexible than meeting planners. Southwest Florida International Airport, which is 40 miles away, is a possibility but may not be the most convenient option.
Finally, many hotel properties are owned by deep-pocketed companies that may be willing and able to wait years for a project to become successful. While Allegiant is a thriving airline, it still may not have the resources or desire to wait it out if Sunseeker keeps losing money.
Given these factors, Collins says “no one should be surprised” that Sunseeker didn’t meet its initial financial goals. Allegiant may need to partner with a brand name or sell the property, he suggests. “Sunseeker’s not going anywhere. The question is who is going to own the hotel? (And) does Allegiant have the ability and the cash flow to cover the losses until the market does catch up? It’s not going to happen in a year, two years, three years. It may not fully happen in five years. (It’s) a long way from where it needs to be. Therefore, they’re going to need a partner. They may need a brand to help them catch up faster.”
A brighter long haul
Despite its growing pains, Sunseeker is a major boon for Charlotte County’s tourism industry, airport CEO Parish says. “Honestly, any time someone invests over half a billion in your community, it’s going to be a good thing. … (W)hoever’s brand is on it, it’s going to be a good thing for us.”
Sunseeker has the potential to lift room rates, attract a broader segment of coveted convention business and “create demand” for hotel rooms during the summer, Collins says. “(Y)ou open up Charlotte County to a whole new world of possibilities in terms of the meetings, conferences and events it can support. (And) it will allow the market to become less seasonal. The Sunseeker is one of those properties that’s going to raise the water level, and all boats rise.”
Sunseeker contains more than 30% of the county’s 2,500 hotel rooms and with 60,000 square feet of meeting space can accommodate groups of up to 1,200 people — about the same number that the resort employs. It boasts the county’s largest pool and even its sole escalator. Guests have access to an 18-hole golf course, state-of-the-art fitness center, salon and spa.
It may also have the most expensive steak in town, a $195 prime Tomahawk ribeye (for two) at Maury’s, named for Allegiant’s former CEO Maurice Gallagher.
Charlotte County Commission Chairman Bill Truex concedes that some locals who visited Sunseeker have voiced concerns about the cost of dining at the resort. But he adds, “The level of the culinary experience that’s presented there — it’s really world-class. In some cases, I would consider (Sunseeker) the centerpiece of our community, or it will be the centerpiece of our community. It won’t ever exceed the water and the fishing and all that, but it will accent all those things people come to our community for.”
Allegiant’s and Sunseeker’s leadership did not respond to requests for comment on this story. But in the company’s second-quarter report, incoming Allegiant president and CEO Gregory Anderson stated, “(W)e continue to believe this one-of-a-kind resort holds greater value than currently reflected.” The company is looking for strong convention and group business to help the resort recover in 2025.
There are signs that is happening. Sean Doherty, tourism director for the Punta Gorda and Englewood Beach Visitor & Convention Bureau, says “2025 (looks) very solid as far as group bookings, and that extends to 2026 and 2027.”
At Maury’s steakhouse, a host said that group business helped them stay busy during the summer. The Florida Planning and Zoning Association held its annual conference at Sunseeker in June, the Florida Association of Housing and Redevelopment Officials in August, and the Central States Insulation Association in September. “(The) trade show was a huge success with attendees saying they loved the venue,” the Zoning Association’s website says.
A visit to Sunseeker on a Friday afternoon in September also augured well. Parts of the resort looked deserted — expected this time of year — but it also buzzed with a bridal shower, a trade group, out-of-town travelers and locals.
At the Half Cracked Tiki Shack, an older crowd appeared as if on cue for early dinner. Outside, a lone swimmer cut a clean line through the pool as a couple near a waterfall gazed at distant fishing piers extending over the tannin-tinted water where the Peace River empties into Charlotte Harbor. Inside the 15,000-sq.-ft. Great Egret ballroom that overlooks the harbor, Punta Gorda Chamber of Commerce staff prepared for a ribbon-cutting party. “Allegiant is a very strong airline,” Chamber President Rich Lancette said. “So I think they’re fine, and Sunseeker is going to be fine.”
On the hotel rooftop, guests sipped cocktails at the bar near an empty infinity pool reflecting a grey-orange sky. Soon another Allegiant jet would soar out of PGD beyond cows grazing near Jones Loop Road and the interstate. “It’s probably the most spectacular hotel you’d want to stay in,” said Christian Ivory, a Realtor from Pittsburgh, Pa., who had just flown in on Allegiant to complete a commercial real-estate transaction. “Perfect flight. Very direct.”
A business associate of Ivory’s who’s a longtime Port Charlotte resident told this reporter he appreciates the new resort. “In 40 years, I haven’t seen this kind of lookout,” he remarked, as late rush-hour traffic backed up on the U.S. 41 bridge eight stories below. “I don’t think we need any more of these, but the one we have is pretty nice.”
Allegiant’s Florida Operations
HISTORY: The Las Vegas-based air carrier first launched services in Florida in 2005, with four routes to Orlando Sanford International Airport, providing ultra-low-cost service to Midwesterners vacationing in Florida. Today, it serves 11 Florida cities with more than 260 routes. The company was founded in 1997 as WestJet Express and began its current low-cost model in 2001.
FLORIDA FOOTPRINT: Jacksonville (JAX), Orlando (MCO), Melbourne Orlando (MLB), Orlando Sanford (SFB), Destin-Fort Walton Beach (VPS), Fort Lauderdale-Hollywood (FLL), Palm Beach (PBI), St. Pete-Clearwater (PIE), Sarasota Bradenton (SRQ), Punta Gorda (PGD), Key West (EYW)
BUSINESS MODEL: Allegiant services top vacation destinations but keeps operational costs down by connecting to secondary airports that charge lower fees. In addition to its flights, the company relies on ancillary fees charged for products and services such as seat assignments, carry-on bags, snacks, and booking hotels and rental cars on behalf of third parties for its passengers.
IMPACT: The company says it flies about 8 million travelers to and from Florida annually, generating $2 billion in economic impact for the state and supporting more than 21,000 jobs. St. Pete-Clearwater International Airport (PIE) has embarked on a $110-million terminal expansion to accommodate the boom in passenger travel fueled by Allegiant’s growth. During Allegiant’s first full year at PIE in 2007, the airport accommodated 747,369 passengers and offered flights to 12 cities. In 10 years, it surpassed 2 million passengers and resumed growth after a sharp decrease during the COVID-19 pandemic. In 2023, PIE exceeded 2.4 million passengers with Allegiant flying to 65 cities.