Blackstone Real Estate Scoops Up Sunseeker Resort From Allegiant In $200 Million Deal

Blackstone (BX) announced on Monday that it has agreed to purchase the Sunseeker Resort from Allegiant Travel (ALGT) for $200 million, less than one-third of the $720 million Allegiant spent to develop the Florida real estate.

Blackstone’s stock was down nearly 2% after the announcement, while Allegiant’s stock took a steeper tumble of more than 6%, as broader markets fell after U.S. President Donald Trump announced 25% tariffs on Japan and South Korea.

On Stocktwits, retail sentiment around Blackstone’s shares improved marginally from a day ago but remained in ‘bearish’ territory. Retail sentiment around Allegiant, on the other hand, surged into ‘extremely bullish’ territory from ‘bullish’ a day ago – marking a year-high for the stock.

Allegiant said the proceeds from the sale will go toward repaying debt. The transaction, using funds affiliated with Blackstone Real Estate, is expected to close in the third quarter (Q3) of the current fiscal year.

The deal marks the end of Allegiant’s foray into hospitality, traditionally known for its airline business. Delays, pandemic-related disruptions, and hurricane damage hampered its efforts. Originally envisioned as a high-end extension of the company’s travel business, the 785-room resort opened over budget and four years behind schedule.

Allegiant CEO Gregory Anderson said the deal with Blackstone should help “realize the full potential of Sunseeker Resort.” 

“Furthermore, it supports Allegiant’s strategy centered around the airline, and we plan to use the proceeds from the sale to repay debt and strengthen our balance sheet,” he added.

Allegiant has been looking to sell the resort for at least a year. The company disclosed that it hired an adviser to evaluate options for the resort, allowing it to focus more on its airline operations back in July 2024. 

Blackstone has a strong existing foothold in the real estate market. Its existing investments include W Fort Lauderdale, the Hyatt Regency Clearwater, the Ritz-Carlton Maui, and Waldorf Astoria’s Grand Wailea in Hawaii.

Allegiant’s stock has fallen 40% this year, while Blackstone’s stock has fallen nearly 12%. 

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