Norwegian in talks to buy Oceania and Regent parent

Norwegian in talks to buy Oceania and Regent parentNorwegian Cruise Line was last night reported to be in “advanced talks” to take over the parent company of luxury lines Oceania and Regent Seven Seas Cruises for around $3 billion.

Reuters cited “people familiar with the matter” and said a deal could be announced as early as this week.

A deal would give Norwegian, a company with a market value of $6.8 billion, access to Prestige Cruise Holdings’ luxury ships and affluent clientele as it competes with larger rivals Carnival Corporation and Royal Caribbean Cruises.

But sources cautioned that the talks could still fall apart. The owner of Prestige Cruises, private equity firm Apollo Global Management, also owns a 20% stake in Norwegian.

Miami-based Norwegian Cruise operates 13 cruise ships in North America, the Mediterranean, the Baltic, Central America and the Caribbean. It had revenues of $2.57 billion in 2013, up 13% from 2012.

Oceania and Regent together have eight cruise ships operating worldwide. Prestige posted revenues of $1.2 billion in 2013, up 6% from the year earlier.

Prestige registered with US regulators for an initial public offering in January. Apollo has been the company’s majority shareholder following an $850 million deal in 2007.

Apollo made a $1 billion investment in Norwegian in 2008 and the company went public in January 2013.

Carnival, Royal Caribbean Cruises and Norwegian together account for 82% of the North American cruise passenger berth capacity, according to Prestige Cruises’ initial public offering registration document.

Norwegian and Prestige representatives did not respond to requests for comment, while an Apollo spokesman declined to comment, according to Reuters.

Cruise lines increasingly onboard with overnights

By Tom Stieghorst
Hong Kong fireworksThe emergence of evening port stays as a defining feature for Azamara Club Cruises has focused a spotlight on the growing use of this alternate deployment strategy.

Traditionally, cruise lines have offered few if any overnight stays and generally leave ports of call before sunset. Large-ship lines in particular have made their vessels into evening playgrounds.

“The shipping industry as a whole has built massively beautiful, stunning ships … but oftentimes in many people’s minds the ship became the destination,” said Azamara President and CEO Larry Pimentel.

A number of lines are flipping that playbook, making the actual destination the evening focal point.

“We have to think not outside the box, but outside the ship,” Pimentel said.

Other lines that have embraced overnight stays include Crystal Cruises, Seabourn, Silversea Cruises and Oceania, whose fleet deploys some of the same type of ships that Azamara does.

By offering more overnight stays in port, cruise lines risk declines in some key sources of onboard revenue, such as casinos, duty-free shops, bars and alternative restaurants.

Almost all the lines pursuing the strategy are upscale, small-ship brands with inclusive amenity policies and worldwide itineraries with a preponderance of longer voyages.

Crystal Cruises, for example, is offering a 14-day Asian cruise next January that overnights both before it departs Singapore and after it terminates in Hong Kong, as well as a mid-cruise overnight in Ho Chi Minh City, Vietnam.

Overnights have practical benefits in addition to giving guests more sightseeing time.

“When you overnight the day you arrive at port, the number of bags that miss the cruise drops to zero,” said Thomas Mazloum, Crystal’s senior vice president for operations.

Crystal is offering some epic holiday port stays, including a 2016 New Year’s Eve overnight in Sydney, Australia, that includes chartered catamarans to see a fireworks display.

Another line that is increasing the number of overnight stays it offers is Silversea Cruises, which for 2014-15 has increased to two days each its overnights in Livorno and Sorrento, Italy; Bordeaux, France; and Leith, the port for Edinburgh, Scotland.

Silversea has also increased late-night departures in cities with desirable night-life scenes, including St. Tropez, Ibiza, Monaco, Portofino, St. Barts and Amsterdam, spokesman Brad Ball said.

Likewise, Oceania Cruises and Regent Seven Seas Cruises have a list of nearly two dozen ports where they conduct overnights, including stays of more than one night in Jerusalem, St. Petersburg, Shanghai and Yangon, Myanmar.

Pimentel said that because several cruise lines have acquired some of the former Renaissance Cruises R-class ships, it is hard to compete by claiming unique hardware. And some competitors have more luxurious vessels.

“I am not naive about the fact that the ships are 13 to 14 years old,” Pimentel conceded. “I do not have new tonnage.“

But as long as he can offer a unique experience, Pimentel said, people will seek it out.

That also is the thinking behind Costa Cruises’ neoCollection, a portfolio of older, smaller ships that Costa is promoting as “slow cruising.”

Many neoCollection itineraries are exclusive to the line’s smaller “neo” ships, which can sail to destinations inaccessible to larger vessels. Itineraries are designed with longer stopovers at each port — often overnight and part of the next day — to allow maximum time on shore.
Museo Picasso
Ships in the collection include the Costa neoRiviera (624 cabins) and Costa neoRomantica (789 cabins).

Pimentel acknowledged that other cruise lines are offering some overnights but said no one else offers at least one on every voyage. “Nobody hits as much of this as we do,” he said.
Building a collection of evening tours has taken time, Pimentel said, because tour operators weren’t accustomed to having ships in port so late.

Azamazing Evenings, Azamara’s first evening product announced last year, included special events such as an operatic recital at a castle in Tuscany.

Each cruise had one such evening, which was included in the base fare and was designed to accommodate all 694 passengers who can be accommodated at dual capacity on an Azamara ship.

Now, beginning with the summer season in Europe, Azamara will roll out Nights and Cool Places. Unlike Azamazing Evenings, they will be fee-extra and are designed for a couple dozen guests at a time.
They will also take place after guests have dined on the ship, making the prices more affordable.

Examples include a visit to the Picasso Museum in Malaga, and a tram ride to a peak for a private concert and to view the laser light show in Hong Kong harbor.

A second program, called Insider Access, will take guests to private homes for immersion experiences or connect them to locals in ways that conventional tours do not.

Prices will start at $120 to $150 and run up to $800 for insider programs with elite personalities.

“There’s a lot of human effort that goes into making this happen,” Pimentel said.

He said that with relatively few slots in each night tour, he expects them to sell out at first. “We will add more because communities have more than one cool thing,” Pimentel said.

One factor that restricts cruise lines at night is that port labor agreements sometimes limit the availability of workers, or make them more expensive. Crystal’s Mazloum said that can make it challenging when a ship overnights pre-cruise and guests arrive after-hours.

By staying in port more days, ships also incur more port charges for dock space, security and services, although that is partly or wholly offset by fuel savings because the ship is not moving, cruise executives said.

5 Great Spaces to Lounge at Sea

Life is sweet in these special areas on cruise ships that invite guests to de-stressBy: Marilyn Green

The Library on Oceania Marina is home to comfy leather armchairs and around 2,000 books and periodicals. // © 2014 Oceania

The Library on Oceania Marina is home to comfy leather armchairs and around 2,000 books and periodicals. // © 2014 Oceania

Vacations are supposed to be relaxing, but by the time our overworked brains get the message the vacation is often nearly over. Understanding this dilemma, cruise lines have devised some outstanding spaces that entice guests to slow down, relax and enjoy. These are the ones I love best.

Library, Oceania Marina 
I immediately fell in love with Oceania Marina’s library, and I had plenty of company. It looks like a P.G. Wodehouse or Agatha Christie setting with guests who are reading, sipping and dozing while sprawled out on huge leather chairs.

Be sure to explore the nooks created by the shelves holding 2,000 books and periodicals to find your perfect place. You have to get up very early on sea days to stake out a chair and a favorite nook. On my cruise, some people come to the library at 4 a.m. to grab a chair near the fireplace. The library’s English country house atmosphere is beyond soothing. With the availability of coffees and snacks at the adjoining Baristas Coffee Bar, and computers for Internet access, some passengers make a day of it.

 

Spa Recovery Room, Costa Luminosa
Most ships’ spa recovery rooms have elegant, minimalistic loungers with a view of the sea, but not onboard Costa Luminosa. Here, guests who have had a massage or other spa treatment can chill out on canopied beds with filmy curtains in a shady, quiet room that seems to inhabit another world altogether. And if you prefer a sunnier spot to let the pampering soak in, you can push open the picket gate to the outside garden from your treatment room, step out and relax in a chair.

 

Explorations Cafe, Nieuw Amsterdam
Explorations Cafe, powered by the New York Times, is my fantasy of what a retreat should be, and guests are constantly saying they need one at home. The ingredients speak for themselves: blissful, squashy leather chairs and couches, Internet stations, pastries, brownies, cupcakes, specialty coffees and thousands of books, magazines, DVDs, newspapers and table games — not to mention vast views of the sea. It’s full of guests from morning to night, sending emails, reading, chatting and playing games.

 

The Hideaway, Celebrity Silhouette
Many ships have comfortable chairs, but Silhouette has nests that for me brought back memories of childhood retreats. Tucked away near an impressive 20-foot live tree that stands over the atrium, the intimate The Hideaway is an irresistible stylized tree house, with comfortable seating and suspended nests where guests can enjoy the peace, read or play with the Apple products from the Celebrity iLounge.

 

Seabourn Square, Seabourn Sojourn
I never thought I’d choose a purser’s desk for relaxation, but Seabourn Sojourn’s Seabourn Square makes dealing with questions both serene and pleasurable. The core of the ship and its collective living room, Seabourn Square includes purser and concierge functions but guests sit across from staff — there is no standing and waiting. And the atmosphere is eons away from a typical front desk. This open space at the heart of the ship is gently divided into areas for Internet access, a very fine library of books and magazines and plenty of seating options, from easy chairs and couches to tables and chairs perfect for enjoying the specialty coffees, teas and pastries that are always readily available.