Blackstone agrees to buy Allegiant Florida resort for US$200mil
NEW YORK: Blackstone Inc has agreed to purchase Allegiant Travel Co's Sunseeker Resort for US$200mil, far less than the US$720mil that the parent of Allegiant Airlines spent building the beleaguered retreat.
The sale is expected to close in the third quarter of this year, according to a statement Monday that confirmed an earlier Bloomberg News report.
Allegiant will use the proceeds to repay debt. The sale ends Allegiant's effort to extend its travel business into hospitality with the ambitious Port Charlotte, Florida destination resort.
Sunseeker was built over budget and four years behind schedule. Hobbled by the coronavirus pandemic and hurricane damage, the resort struggled to produce sufficient returns.
Blackstone's experience in the hospitality industry should help 'realise the full potential of Sunseeker Resort,' Allegiant chief executive officer Greg Anderson said in the statement. — Bloomberg
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