Neptune Owners Reverse Course. Rebuild is Off

In December of 2024, the Fort Myers Beach Town Council voted 4-1 to approve a new 148-unit Neptune Resort at 2310 Estero Boulevard. Continental Hospitality Group had purchased the property in 2021 for $27 million. Then in 2022 Hurricane Ian destroyed it. 

During the Town Council vote in December of 2024, Mayor Dan Allers voted against the project because it would have increased the density of the hotel by 100%. The approval of the 130,000 square foot development included a 51 foot high building, 148 units (compared to 71 before the storm), 6 floors, a restaurant and 164 parking spaces.

About the property now going up for sale, Allers said, “Decisions like this are never easy, especially for a property that holds so many memories for residents, visitors, and generations of families who have enjoyed our community. As we continue to recover and rebuild, change is an inevitable part of that process, and it often comes with mixed emotions. As with any property transaction, the Town will follow its established processes and ensure that any plans for the site comply with our codes, regulations, and community standards. Our focus remains on balancing responsible redevelopment with the preservation of the character, history, and quality of life that make Fort Myers Beach special.”

Vice Mayor Scott Safford commented, “Although I am saddened by this, their decision to sell appears to be a business decision driven by timing, capital allocation, and risk tolerance rather than a signal about the long-term viability of Fort Myers Beach. Post-hurricane redevelopment requires significant upfront investment and much longer timelines, and not every owner is positioned or willing to take that on. For the beach community, this likely means a transition period rather than a setback. Properties changing hands can bring in new owners with fresh capital and different redevelopment visions, which is often part of post-storm recovery cycles. Fort Myers Beach continues to attract investor interest, and decisions like this reflect differing strategies—not a loss of confidence in the destination itself.”

The LPA approved the project unanimously in November of 2024 even after the owners came back and requested 8 more units, pushing the total to 148. LPA Chair Anita Cereceda commented to Beach Talk Radio about the situation. “It’s a shame that the Neptune group could not find a way forward to complete the project we all worked hard on to approve.  In a small community like Ft. Myers Beach, the relationships we build with our business partners are extremely important. The entitlements granted on the projects that are currently “on the books”, Arches, Myerside, Pink Shell and Neptune, were, in part, approvals based upon the relationships that have been built with those individuals over the years.  Trust is a two way street and the progress we need to see on this island will depend upon everyone fulfilling their promises.”

LPA Member Jim Boan is hopeful a new partner can be found. “We are all disappointed to hear that Neptune ownership decided to put the property on the market. Since the project and associated entitlements have been approved, I believe the current financial/capital markets loan requirements are the cause for their decision. Hopefully, they find a qualified buyer who is ready to move the project forward with the original plans.”

LPA Member John McLean said he’s disappointed that the Neptune owners have decided to sell, as this will likely delay the project further. “They mentioned that their original plan when they purchased the Neptune prior to Hurricane Ian was to make incremental investments and improvements. Building from scratch was a significant departure from their core strategy. Perhaps the next owner will have more experience in developing resorts from the ground up.”

Tom Brady, who’s applied for the open Town Council seat (along with Boan and McLean) said, “I won’t speculate on Neptune’s reasoning, but I can say unequivocally that the Town of Fort Myers Beach went above and beyond to accommodate the developer’s requests. The Town worked in good faith as a partner, even without unanimous community support. Given the limited amount of developable land on barrier islands, if Neptune decides not to move forward, another developer will.”

Boykin Management Company President Bill Waichulis runs the Pink Shell Resort on Fort Myers Beach. He’s also a member of the Lee County Tourist Development Council. “As a hotelier who has been operating in this market for the past 22 years, and as a TDC member, I believe the decision for the Neptune to sell is driven (mostly) by financial realities—not politics. When you look at the current environment, the challenges become fairly clear. Beach resorts in Lee County are averaging roughly 50% occupancy for 2025, construction costs remain approximately 30% higher than the national average, and operating expenses—minimum wage increases and insurance being two of the usual suspects—continue to climb. Add in the current cost of capital, and it’s no surprise developers are developing heartburn trying to make returns pencil out. Until occupancy improves beyond current performance levels, which would also support stronger average daily rates, it will be extremely difficult for projects to meet investment expectations. The island is a blend of constituencies; residents, and commercial and the town has the difficult task of managing both. To disadvantage commercial growth will rebound to a possible negative impact for all in providing a budget for town operations. Balance is the key. As we continue to stack hurricane-free years and rebuild confidence in our destination (always helpful in the hospitality business), I believe we will see occupancy and rates trend upward over time.”

Continental Hospitality Group’s Adam Valente sent Beach Talk Radio the following statement: “We’ve decided to market the Neptune for sale. The most critical factor is that the property was purchased before the hurricane never with an intention of redeveloping and not initially capitalized to do so. We pursued the approvals for a project we believe is in the best interest of all stakeholders, very much including local residents. The project represents a beautiful, appropriately sized/scaled boutique resort that would celebrate the former Neptune albeit a new, more modern and grander version. Its hallmark would be a one-of-a-kind beachfront restaurant and bar that we’d hope locals would love and enjoy for decades to come. Over a year after we received approvals, the determination has been made to market the site and see if a better suited developer has sincere interest in bringing the project to fruition. There are a lot of factors that go into this decision, and no one factor such as the local political environment persuaded us to make this decision.”

LSI Companies is now listing the property for sale and issued the following statement: “The decision to sell and formerly market the property comes following the acquisition of the previously existing “Neptune Inn” by the current ownership in 2021, a quaint Old Florida style inn, which was then severely damaged less than 1 year into ownership by the effects of Hurricane Ian. Post-Hurricane, the owners diligently pursued and obtained entitlements for a re-imagined and improved concept for the property, which includes zoning for up to 148 lodging units and accessory uses. This group has now determined that the ground-up development of what will be a transformative hospitality project for the island is not consistent with their investment strategy within the region. Now, they have set the stage for a new group to capitalize and deliver the project with a majority of the heavy permitting legwork completed, allowing a quicker route to shovel-in-ground and vertical development of the project.”

Justin Thibaut at LSI told Beach Talk Radio the listing is a call for offers, there is not an asking price. 

The town of Fort Myers Beach issued the following statement to Beach Talk Radio: “The Town of Fort Myers Beach has not been in direct contact with Neptune; however, we have reviewed their public statement. From the Town’s perspective, because the project plans went through the appropriate committee process and were ultimately approved by Town Council, the political and policy considerations surrounding the project were resolved at that time through democratic processes. Based on what we understand, the current challenge appears to be related to financing and funding. The Town supports development on the island that has been democratically approved, and we hope Neptune is able to resolve its financing issues so the project can move forward as voted on and planned.”

Since the 1960’s the old Neptune had been a magnet for families visiting Fort Myers Beach, despite the fact it didn’t have a restaurant on the property. 

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