Supply chain issues are causing the estimated budget of Allegiant’s Sunseeker Resort in Charlotte Harbor to increase by 10-15%.
On a quarterly earnings call Wednesday afternoon, Allegiant Travel Company President John Redmond said that because of price increases and delivery problems caused by delays in the global supply chain, the total budget for Sunseeker could end up being $585 million, which is 15% more than the $510 million budget projected last August.
“After restarting the project and spending some time understanding the impact to the budget due to the unexpected supply chain disruption that impacted price and delivery timeframe, I mentioned in the last call the budget could increase by 10-15%. That estimate has not changed as of today,” Redmond said.
In case you missed it: Allegiant Sunseeker construction in Charlotte Harbor set to resume in August
Las Vegas-based Allegiant, a travel company that operates the dominant airline at nearby Punta Gorda Airport, started work on Sunseeker in late 2018. The airline also has a huge presence at nearby Sarasota-Bradenton International Airport and St. Pete-Clearwater International Airport.
Construction halted after the pandemic hit in 2020, and resumed in August 2021 after Allegiant secured a $350 million construction loan and placed the hotel as collateral.
So far, $211 million has been spent on Sunseeker, including $23 million funded by debt and $188 million from Allegiant. Capital expenditures on the resort for 2021 were $51 million, according to the company.
In order to provide what Redmond referred to as “some level of comfort,” Allegiant has bought out or signed commitments for 74% of the revised budget. By the end of the second quarter 2022, that figure should be close to 100%.
Despite the supply chain delays, Sunseeker is still set to open by 2023, according to the company.
The massive, 785-key resort, which sits on the banks of the Peace River, is designed to put Charlotte Harbor on the map as a vacation destination. It represents Allegiant’s first foray into the resort business.
When it opens, Sunseeker will have a marina, 55,000 square feet of meeting and event space, a state-of-the-art fitness center, restaurants, bars, retail stores, two towers filled with extended stay rooms and a rooftop pool with a restaurant that will only be accessible to hotel guests.
Florida is a huge market for Allegiant. Punta Gorda was its best-performing airport throughout the pandemic, and the airline flies about 8 million leisure travelers in and out of the Sunshine State each year.
Allegiant also flies to 29 destinations from Sarasota-Bradenton International Airport and to nearly 60 from St. Pete-Clearwater International Airport. New service between Sarasota-Bradenton and Austin, Texas is scheduled to begin in April.
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