Allegiant, TSSP Enter into Potential $1B Development Deal for Sunseeker

LAS VEGAS—Allegiant Travel Company and TPG Sixth Street Partners (TSSP), the global finance and investment firm in a strategic partnership with TPG, have entered into an agreement to finance the development of Sunseeker Resorts Charlotte Harbor, the company’s planned resort in the Charlotte County/Punta Gorda area in southwest Florida.

Under the agreement, TSSP has committed $175 million in initial funding to support construction of this inaugural hotel development under Allegiant’s Sunseeker Resorts brand. This initial commitment represents the first piece of a long-term, potential $1-billion partnership to develop the Sunseeker Resorts imprint, and will provide opportunities to develop future phases for Sunseeker Resorts Charlotte Harbor, additional properties or related ventures at the discretion of both companies.

Located near the Punta Gorda Airport (PGD), a base of operations for Allegiant Air that served more than 1.5 million passengers in 2018, Sunseeker Resorts Charlotte Harbor will be the largest resort in the region. Phase I of the resort is anticipated to include an estimated 510 hotel rooms, 189 extended-stay suite units, meeting and conference space, as well as a variety of restaurants, bars and retail outlets along a scenic harbor walk.

In addition to its service to Punta Gorda, Allegiant Air currently operates flights from nearby St. Pete-Clearwater International Airport (PIE), Orlando Sanford International Airport (SFB) and Sarasota-Bradenton International Airport (SRQ)—all within a two-hour drive of Charlotte Harbor. In total, Allegiant Air currently moves nearly eight million leisure travelers in and out of Florida every year. This nexus between air transportation and hospitality will afford easy access to the resort location, while capitalizing on the direct-to-customer sales model which has been Allegiant’s hallmark as a low-cost airline with a focus on leisure travel, the company reports.

“Allegiant manages a highly profitable, cost-efficient operation that has been at the cutting edge of developing new markets and offering ancillary leisure services since its founding nearly two decades ago,” said Clint Kollar, a TSSP partner. “We are pleased to be financing the introduction of a unique resort brand that integrates the strength of a proven airline operation with a tremendous existing customer base and a highly successful direct-sales model. The seasoned team of hospitality industry and large-scale development veterans Sunseeker has attracted to this project is another indication of how innovative and special this brand can be. We look forward to a successful partnership in supporting the Sunseeker brand over the coming years.”

Goldman Sachs acted as sole financial advisor in this transaction.

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