Castlelake, L.P. ("Castlelake"), a global alternative investment manager with 16 years of experience investing in asset-rich opportunities, announced today it has provided a loan to Sunseeker, a wholly-owned subsidiary of Allegiant Travel Company (NASDAQ: ALGT), an integrated travel company with the world's leading ultra-low-cost carrier at its core. The loan will be used to fund construction of Sunseeker Resort Charlotte Harbor, which resumed in August of this year.
Las Vegas-based Allegiant began construction of Sunseeker Resort Charlotte Harbor – a first-of-its-kind destination resort in southwest Florida – in March 2019, before pausing due to the severe impact of the COVID-19 pandemic on the travel and hospitality industry.
"Castlelake is pleased to provide financing to Sunseeker and strengthen our relationship with Allegiant through this project," said Armin Rothauser, Partner and Head of Lending at Castlelake. "This transaction sits at the intersection of Castlelake's deep real asset expertise, aviation experience and solutions-oriented approach."
Sunseeker Resort Charlotte Harbor is expected to have a significant impact on the local economy, eventually employing about 800 construction workers. Once the resort opens, Sunseeker expects to employ approximately 1,150 people, making it a leading employer in Southwest Florida. The resort will feature more than 500 hotel rooms, more than 180 extended stay suites, 55,000 square-feet of meeting and conference space, 19 restaurants and bars, and retail outlets along a scenic harbor walk.
"Sunseeker will not only be a transformational project for Southwest Florida, but also a tremendous catalyst for Allegiant's continued growth as an integrated travel company," said Allegiant President John Redmond. "This unique resort will bring unprecedented value and opportunity to our emerging leisure travel marketplace."
Allegiant Travel Company is focused on linking travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and base airfares less than half the cost of the average domestic roundtrip ticket. The company demonstrated resilience during the COVID-19 pandemic, with the smallest revenue decline of any airline in 2020.
As a top 15 aircraft lessor and more than 16 years of experience investing in, financing and managing aviation assets, Castlelake has a long-standing relationship with Allegiant. Castlelake's lending platform, which provides financial offerings to aviation-related asset owners and buyers, has completed over $2 billion of financings since November 2020. Castlelake also has significant experience structuring and executing land and real estate-centric transactions including acquisition, development & construction (AD&C), land banking, secured debt financing and direct investing.
"Castlelake is a proven, trusted partner with the right expertise to execute on financing the Sunseeker project within its own framework," said Allegiant Executive Vice President and Chief Financial Officer Greg Anderson. "Obtaining this financing affords Allegiant the capital needed to fund the bulk of the remaining cost for the Sunseeker project, in an efficient manner consistent with our fiscal strategy."
View the press release.