Cost of Allegiant Resort in Charlotte Harbor Jumps Again, Now Surpassing $600 Million | Business Observer
The construction price of the Sunseeker Resort Charlotte Harbor has increased again.
After saying earlier this year that the price of the resort had risen to $585 million, Allegiant Travel Co. revealed in an SEC filing on Tuesday afternoon, May 4, that the price now stands at $618 million.
The company says in the filing — its first-quarter earnings report — that the increase was “primarily due to inflationary pressures on materials as well as supply chain delays.”
The increased cost to build the complex bumps the originally planned price of $510 million by more than $100 million.
According to the filing, the total amount spent on the project as of March 31 is $275 million, with $87 million financed through debt and the remaining $188 million from the airline. The resort’s capital expenditures in the first quarter were $64 million, 100% of which came from debt, the company said.
But the news wasn’t all bad. In the filing, Allegiant, which began accepting bookings for the hotel in March, says that “although it is too early to determine trends, the average daily rate for bookings to date is more than $50 higher. % to the average daily rate that we used in our model.
Overall, the company said its total operating revenue for the quarter was $500.1 million, up 10.7% over a three-year period.
The Sunseeker, which is expected to open mid next year, is expected to have 785 rooms as well as 19 restaurants and bars, two pools, a spa and salon, a 117,000 square foot “ground level experience”. an adults-only rooftop retreat, 60,000 square feet of meeting space, a harbor promenade, and an 18-hole golf course.
The room mix will include 189 one- to three-bedroom luxury suites ranging in size from 875 square feet to 1,700 square feet and will include chef-level kitchens, private balconies and separate check-in, services and private lounges . The company calls this hotel concept a Sunsuites hotel.