Azamara’s Fleet Comes Under V.Ships Leisure’s Ship Management

Azamara’s four-ship luxury fleet is now under the ship management of V.Ships Leisure, which has assumed all technical oversight, crewing and port operations, according to Per Bjornsen, CEO, V.Ships Leisure.

After private equity firm, Sycamore Partners’ acquisition of Azamara from the Royal Caribbean Group earlier this year, the Azamara Onward entered V.Ships’ management following the ship’s acquisition, while the company brought the Quest into management on October 23, the Pursuit on October 28 and the Journey on October 31.

Detailed Way

“We’ve been through the plan in the most detailed way to ensure there is no change to the guest experience. That has been the core,” said Bjornsen, noting that while it is rare to decouple brands from a major cruise group, V.Ships has done it several times.

Taking over four sister ships, the crew will stay the same, but be managed by V.Ships, while other new systems have been put in place.

“We are moving toward more data-driven management for planned maintenance, for example,” Bjornsen told Cruise Industry News. “The data is being migrated to our platform, ShipSure, which is the digital platform in the centre of everything we do. There has been detailed planning with Azamara, Royal Caribbean Group and our team to make this smooth.”

“There has been thorough planning of crewing, the procurement hand over and customization of the safety management system – making sure there are no gaps compared to the service which was provided previously. However, we see this as a greenfield opportunity to do things smarter.”

Four Ships

“When you have the opportunity to have four sister ships, it’s quite interesting what you can do, comparing the fleet, how you operate and sharing best practices. There is a tremendous amount of data and if you use it cleverly you can move towards predictive maintenance,” Bjornsen explained.

Moving to V.Ships, Azamara has access to a global network of offices, purchasing power and redundancy of resources.

“It’s important that we share the same culture,” Bjornsen said of Azamara’s and Sycamore’s relationship with V.Ships. “Safety is the number one priority and we are going into this with a long-term horizon working together as partners.”

Cabezas: ‘Azamara Sale is a Win-Win-Win’

The Chief Operating Officer of Azamara, Carol Cabezas, has explained the sale of Azamara to a private equity firm, Sycamore Partners, with increasing the value of the cruise line’s product and driving the brand forward.

“Sycamore Partners, which has invested in many upscale consumer brands, is known for identifying great brands that need flexible funding to grow and succeed,” Cabezas said in a video address published on the brand’s official website.

“Sycamore’s strategy is to partner with existing management to nurture companies for growth and invest in upscale companies. The priority is to increase the value of our product. So, it's a win-win-win,” she added.

This comes a couple of hours since Royal Caribbean Group announced it has entered into a definitive agreement to sell its Azamara brand to Sycamore Partners in an all-cash carve-out transaction for $201 million, “subject to certain adjustments and closing conditions.”

The sale is expected to close in the first quarter of 2021, Cabezas said, after the cruise line receives all the normal regulatory approvals.

The transition will take a couple of months with the help of the Royal Caribbean Group.

According to Cabezas, nothing is currently expected to change for Azamara’s customers.

“There is no impact on your current bookings, future cruise credits, refunds or the availability of your travel advisor. Also, our website and care centre agents remain open for business, and I encourage you to start planning your next cruise with us,” she said, before adding that that the entire team will stay with Azamara, including customer care staff and crew.

“We commit to keeping the brand elements that make us Azamara, your brand of choice with immersive experiences that elevate vacation to lifestyle and superior service throughout the journey. With Sycamore, we intend to rapidly expand these to offer more destinations and portfolio choices at every step along the way. We're only going to get better,” Cabezas stated.

Azamara will adopt the same health and safety protocols as the Royal Caribbean Group, Cabezas said in a statement. These were developed by a group of public health experts at the Healthy Sail Panel.

NCLH hires Goldman Sachs as financing options are explored

NCLH hires Goldman Sachs as financing options are explored

Norwegian Cruise Line Holdings has reportedly hired experts at investment bank Goldman Sachs to explore financing options on its behalf.

The parent of Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania Cruises has tasked Goldman Sachs will looking into options which could include the sale of a stake in the company, according to a report from Reuters.

It comes amid a global pause on cruise operations due to the coronavirus outbreak.

The report suggests NCLH is considering a stake sale known as private investment in public equity (PIPE), with the company said to be in talks with several private equity firms.

Goldman Sachs declined to comment and the Reuters report said NCLH did not immediately respond to a request for comment.

It comes after Carnival Corporation raised $6.25 billion by issuing new debt and equity to investors. It made a share offering to raise $3 billion and said it would issue $1.75 billion in senior convertible notes. It also commenced an underwritten public offering of $1.25 billion of shares of common stock and underwriters were being given an option purchase of up to $187.5 million additional shares.

Earlier this month it was announced that Saudi Arabia’s sovereign wealth fund had acquired a minority stake in Carnival Corp. The Public Investment Fund based in Riyadh disclosed that it had taken an 8.2% shareholding in the world’s largest cruise company, estimated to be valued at around $370 million.

Royal Caribbean Cruises – parent of Royal Caribbean, Azamara, Celebrity Cruises and Silversea, also announced a $2.2 billion loan last month as it looked to shore up cash flow amid the pandemic.

On April 9, the US Centers for Disease Control and Prevention extended its ‘no sail order’ for all cruise ships for up to 100 days.