Tag Archives: Royal Caribbean

Royal Caribbean To Sell Azamara Brand To Sycamore Partners

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Azamara Quest.

Royal Caribbean Group today announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners, a private equity firm specializing in consumer, retail and distribution investments, in an all-cash carve-out transaction for $201 million, subject to certain adjustments and closing conditions.

Sycamore Partners will acquire the entire Azamara brand, including its three-ship fleet and associated intellectual property. The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. Royal Caribbean Group noted the transaction allows it to focus on expanding its Royal Caribbean International, Celebrity Cruises and Silversea brands.

“Our strategy has evolved into placing more of our resources behind three global brands, Royal Caribbean International, Celebrity Cruises and Silversea, and working to grow them as we emerge from this unprecedented period,” said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean Group. “Even so, Azamara remains a strong brand with its own tremendous potential for growth, and Sycamore’s track record demonstrates that they will be good stewards of what the Azamara team has built over the past 13 years.”

“We are pleased that Royal Caribbean Group has entrusted Sycamore to support Azamara in its next phase of growth,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We are excited to partner with the Azamara team and build on their many years of success serving the brand’s loyal customers. We believe Azamara will remain a top choice for discerning travellers as the cruising industry recovers over time.”

Azamara’s value proposition and operations will remain consistent under the new arrangement, and Royal Caribbean Group will work in close collaboration on a seamless transition for Azamara employees, customers and other stakeholders. In conjunction with the transaction, Azamara Chief Operating Officer Carol Cabezas has been appointed President of the brand.

The transaction will result in a one-time, non-cash impairment charge of approximately $170 million. The sale of Azamara is not expected to have a material impact on the Royal Caribbean Group’s future financial results. Perella Weinberg Partners LP served as financial advisor to Royal Caribbean Group and  Freshfields Bruckhaus Deringer LLP provided legal counsel. Kirkland & Ellis LLP provided legal advice to Sycamore Partners.

Cruise lines will need agents “more than ever”

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Cruise lines will need agents “more than ever” as the sector emerges from the Covid-19 pandemic over the next year.

Martin Alcock, director at Travel Trade Consultancy, said that cruise “would take a bit longer to bounce back” from the crisis than other parts of the travel industry.

But he added there was significant growth potential as cruise still represents just a “small portion” of the overall holiday market.

“It’s always been a complicated product to sell and cruise lines will need agents more than ever,” said Alcock during Barclays’ Travel Industry State of the Nation online event. “There will be more commission and more in the way of overrides.”

Alcock said that one of the “upsides” to this year’s crisis was that it had “accelerated” the retirement of older vessels which would reduce worldwide cruise capacity by 8%-10% in 2021. Fleets will also be more efficient and sustainable as they comprise more modern ships.

“The 10% reduction in capacity will help from a price perspective,” he added. “There’s plenty of opportunities to grow.”

Alcock said that while the cruise industry’s core demographic had been “more affected” by the pandemic than other age groups, they were also likely to be “inoculated more quickly than other demographics”.


“Cruise has unfairly had a disproportionate share of bad press but I don’t think it’s terrible news. It’s not a total disaster,” he added.

Alistair Pritchard, travel and aviation lead partner at Deloitte, said the extra complexities created by a combination of Covid and Brexit would lead to more consumers looking to the trade for advice and support.

“They [agents] will need to help support customers across the whole journey – not just when booking,” he added. “They [customers] want advice just before travelling and whilst they are abroad. That’s where the consumer wants to support.”

New Royal Caribbean Ship Leaves the Building Hall

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There is more construction progress on the Odyssey of the Seas as Royal Caribbean International’s latest megaship left the covered building hall at Meyer Werft on Saturday.

This is a key milestone in the construction progress of the Quantum-Ultra class ship, as now the ship will be positioned at the yard’s outfitting pier and most work will now turn to finishing hotel items aboard the ship.

The Odyssey of the Seas is a sister to the China-based Spectrum of the Seas and is due for delivery from Royal Caribbean this coming spring.