Long-Term Agreement Kicks Off With $175 Million in Committed Capital for Sunseeker Resort Charlotte Harbor
LAS VEGAS and SAN FRANCISCO, March 18, 2019 /PRNewswire/ -- Allegiant Travel Company (ALGT) and TPG Sixth Street Partners (TSSP), the global finance and investment firm in a strategic partnership with TPG, today announced 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 which served more than 1.5 million passengers in 2018, Sunseeker Resorts Charlotte Harbor will be the largest and most unique 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 8 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 in its success as an industry-leading, low-cost airline with a unique focus on leisure travel.
"We are so pleased to partner with TSSP – not only for strategic capital to construct our inaugural resort in Charlotte Harbor, but also to develop the Sunseeker Resorts brand, where we share a vision for tremendous opportunity in the future," said John Redmond, president, Allegiant Travel Company. "We look forward to working with TSSP to develop a premier leisure destination that brings great value, world-class facilities and innovative service to our customers, brings jobs and economic opportunity to the region, and supports the evolution of Allegiant as a multi-faceted leisure travel company."
"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.
Las Vegas-based Allegiant (NASDAQ: ALGT) is focused on linking travelers in small-to-medium cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms and rental cars. All can be purchased only through the company website, Allegiant.com. Beginning with one aircraft and one route in 1999, the company has grown to more than 80 aircraft and 425 routes across the country with base airfares less than half the cost of the average domestic roundtrip ticket. For downloadable press kit, including photos, visit http://gofly.us/iiFa303wrtF.
About TPG Sixth Street Partners (TSSP)
TPG Sixth Street Partners (TSSP) is a global finance and investment business with over $30 billion in assets under management. Co-founded in 2009 by Managing Partner Alan Waxman and TSSP's management team, the firm's long-term oriented, highly flexible capital base allows it to invest across industries, geographies, capital structures and asset classes. TSSP focuses on partnering with businesses and management teams to create fully committed financing solutions. The firm also makes investments in both private and public companies and assets. TSSP is in a strategic partnership with TPG, the global alternative asset firm. For more information, visit www.tssp.com.
TPG is a leading global alternative asset firm founded in 1992 with approximately $103 billion of assets under management. TPG's investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information please visit www.tpg.com.
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