Parent of Oceania and Regent files for $250M IPO

By Tom Stieghorst

Prestige Cruise International Inc., a holding company that controls Regent Seven Seas Cruises and Oceania Cruises, has filed a registration statement with the Securities & Exchange Commission to sell up to $250 million in stock to the public.

The company, now known as Prestige Cruise Holdings, is controlled by private equity fund Apollo Global Management. Apollo also controls Norwegian Cruise Line Holdings, which went public in early 2013.

Prior to the offering, Apollo owns 59% of Prestige, the filing says.

Financial data in the filing shows that Prestige had revenue of $1.17 billion in the 12 months ended Sept. 30 and net income of $18.7 million.

It also shows the company reported net losses in 2010, 2011 and 2012 of $62.1 million, $69.7 million and $2.6 million, respectively.

The balance sheet shows long-term debt of $1.6 billion on Sept. 30.

The filing lists occupancy for the 12 months ended Sept. 30 at 94%, with a net per diem of $400 and net yield of $376.

In the prospectus, Prestige said it has more than 300,000 households in its loyalty program, and that past guests accounted for 41% of its passengers in the nine months ended Sept. 30.

Prestige said that its sales effort through travel agents is complemented by other programs, including an outbound call center in Miami with 34 sales agents focused on optimizing leads created by other marketing programs.

The filing says Prestige CEO Frank Del Rio’s base salary was $1.6 million in 2013 and will rise to $1.75 million this year.

Prestige Cruise said it intends to use proceeds from the stock offering to pay down debt.

Oceania schedules second world cruise for 2015

By Tom Stieghorst
Oceania Cruises said it will launch a second 180-day around-the-world voyage in 2015, immediately after its inaugural world voyage returns to Miami.

The Insignia will leave July 8 and visit 100 ports of call, starting in New England and Canada. Oceania said the unusual summer start of the cruise will allow for a unique global itinerary. Included in the voyage are overnight stays in 14 cities ranging from Abu Dhabi to Walvis Bay, Namibia.

An early-booking incentive includes free first-class air. Bookings open Dec. 4.

Oceania said the first 180-day trip on the 684-passenger ship sold out in eight hours.

Viking unveils ocean cruise plans

Viking unveils ocean cruise plans

By Tom Stieghorst
Viking Star renderingBEVERLY HILLS, Calif. — Viking Cruises has taken the wraps off a two-ship ocean cruise subsidiary that will launch in 2015 and complement its extensive river cruise operation.

The first ship in the Viking Ocean Cruises fleet will be called the Viking Star and will launch in May 2015 on itineraries in Scandinavia, the Baltic and the eastern and western Mediterranean. (Click here or on the photos for a slideshow of renderings of what the ship will look like.)

The 928-passenger ship will compete in size and emphasis with lines such as Azamara Club Cruises, Oceania Cruises, Regent Seven Seas Cruises and Crystal Cruises.

Viking Ocean Cruises has a firm order for a second ship to be delivered in 2016 and conditional orders and options for four additional ships. The Viking Star will be built by Italy’s Fincantieri.

Viking Cruises Chairman Torstein Hagen unveiled the details of the new product, itineraries and amenities at a function for travel agents and media here.

Viking Star Explorers Lounge renderingViking will straddle the ocean and river cruise markets, an unusual feat; most firms tend to compete in one style or the other.

“With our new ocean cruises, we are applying the same principles behind our award-winning river cruises to our itinerary and ship design, privileged-access excursions and onboard experiences to make destinations the true focus,” Hagen said.

The fare on the Viking Star will include shore excursions, beer and wine with lunch and dinner, WiFi, self-service laundry and 24-hour room service, along with port charges and government taxes.

Designed with the experienced traveler in mind, Viking Ocean cruises will maximize time in port, often with late evening departures or overnight stays.

Similar to Viking’s river ships, the interior design of the Viking Star will be understated and Scandinavian modern.

Viking Star Main Pool renderingThe all-balcony ship will have five cabin categories, ranging from a 270-square-foot model to a 1,448-square-foot suite. There will be two pools, one with a retractable dome, the other a glass-backed infinity pool at the ship’s stern.

Another unusual feature will be a “snow grotto” in the spa in which “snowflakes gently descend from the ceiling through chilled air,” according to a Viking description.

Dining options include a main dining room called the Restaurant, an intimate Chef’s Table, an Italian Grill, a Viking Deli with Scandinavian specialties, a World Cafe and a cooking school and intimate restaurant called the Kitchen Table.

Pricing for the 10-day cruises starts at $2,999 per person, with discounted airfares from $695 per person.

The 2015 maiden season is initially being offered only in the U.S.; Viking will begin marketing the ocean cruises in the U.K., Australia and New Zealand later this year.