Silversea Cruises Now Sailing Under Royal Caribbean Flag

Royal Caribbean Cruises today announced it is increasing its position in  the luxury cruise market. They will purchase 66.7%  of Silversea Cruises for $ 1,000,000,000 (billion)  and assume $ 500,000,000 (million)  in debt. 


The ships and the cruise line will be under Royal's control and flag.   The  three largest cruise lines all have super luxury lines to complement the main stream lines they operate.


Look for Royal to be sending more of the Silversea fleet to Asia and targeting Crystal Cruises, taking guests away from that line.  

Tags: Silversea Cruises

4 Answers

Having an upper luxury brand in the family is a great move by Royal Caribbean. Won’t be surprised if they acquire the remaining 33.3% in the next couple years.

Owning the last third is really not that important. They will have control of the board and management. Therefore they can do anything they want. They can control the flow of income, reduce the profit per share on paper and the stock price. Lowering the cost if they want the balance. But the half a billion plus it would cost to purchase the rest can go to another super ship.

Remember, Royal only put in 500,000 million in cash the balance is loans so use the other shareholders profits to pay things off. Great place for them.

Nice, now my Diamond level from RCI will carry over, if they do it like they do with Azmara and Celebrity Big Smile I like my free drinks and laundry.

But the line offers only "ALL-INCLUSIVE CRUISES" everyone gets free drinks, and Laundry and a Balcony Cabin, so Your Diamond level means? You have a cute little card in your pocket. Maybe great on RCCL but seems to do nothing here.


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