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Forbes
02-05-2025
- Business
- Forbes
Norwegian Is Turning Two Regent And Oceania Cruise Ships Into Residences
The Norwegian Sky is one of several ships that Norwegian is repurposing. Cruise lines are finding a new way to attract new customers, optimize their fleets and, they hope, boost profits by transforming ships into permanent residential vessels. Norwegian Cruise Line Holdings has recently executed a significant shift in its fleet management strategy in all three of its cruise brands: Norwegian, Regent Seven Seas, and Oceania, according to Cruise Industry News. After previously indicating to Wall Street in February that there weren't imminent plans for ship sales and suggesting a 35-year service life for its vessels, the company abruptly changed course in March and April. The rapid transformation began on March 21 when Regent Seven Seas Navigator was sold to Crescent Seas. Just two weeks later, on April 3, the same startup acquired Oceania Insignia. The fleet reduction continued when Norwegian Sky and Sun were chartered to Cordelia Cruises, a cruise line based in Mumbai, four days later. These will remain conventional cruise ships. "These agreements are a clear reflection of our disciplined long term approach to fleet optimization," explained Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, during the company's first quarter earnings call on April 30. "By transitioning these ships into markets outside our core business with established operators in their respective areas, we're able to unlock value from these assets while remaining focused on delivering a consistent, high quality experience across the remainder of each fleet in our three brands." But what's really happening behind this corporate speak? The cruise industry has been exploring new business models, and permanent residences at sea represent an intriguing growth opportunity. The moves create a younger overall fleet profile. Before these transactions, Norwegian Cruise Line would have had an average fleet age of 15 years by 2030, with both Oceania and Regent averaging 14 years. The redeployed ships are among the oldest ships for the three brands. Newer ships are more in demand and generally command higher cruise prices due to their more modern amenities and attractions. In the post-pandemic years, cruise demand boomed. Lines raised prices as ships became fully booked for months into the future. But NCL recently missed its projected earnings, noting 'choppiness' in U.S. bookings on European cruises in the last couple of months. Sommer still made the point that times of economic turmoil can actually shift vacationers to cruising because of its value proposition compared to other types of vacation. If demand for cruising continues to soften, reducing the fleet size will help maintain occupancy levels. The concept of living aboard a cruise ship permanently isn't new, but it's gaining momentum. For cruise companies, selling older ships to residential operators makes financial sense. This reduces maintenance costs on aging vessels and free up capital for newer ships that can command higher cruise prices. For consumers with the means and desire for a nomadic lifestyle, these floating residences can offer an appealing alternative to traditional retirement or second-home ownership. Residents get to travel the world without constantly packing and unpacking, maintain social connections with fellow seafarers, and enjoy the amenities and services of luxury cruise living. To date, residential cruise ships haven't always provided smooth sailing for purchasers. Delays have stranded residents in departure ports. One line, Storylines, in 2022 announced its MS Narrative would sail in 2024. It's now scheduled for 2027. Despite many announcements, there are only two residential cruise ships actually sailing today. With the cost of a residence easily hitting a million dollars or more, a potential purchaser might approach investing in a future launch with some trepidation. Russell W. Galbut is Founder and Chairman of Crescent Seas and also Co-Founder & Managing Principal of Crescent Heights, a Miami-based urban development firm with a thirty-year track record. The ships will be managed and staffed by NCL and The Apollo Group, a firm with decades of experience in luxury cruising. The credibility and experience of the players in this new venture will likely give potential residents confidence in the security of their investment. The Crescent Seas Navigator is scheduled to begin cruising December, 2026, with residences costing from $750,000 to $8 million. A total of five ships are planned. A few months ago, NCL said it would keep its oldest ships sailing years into the future. Then, as the cruise market showed signs of possible weakness, it changed course. Two of the ships, the Norwegian Sky and Norwegian Sun, will be chartered to a company that isn't directly competitive with NCL's brands. The Regent Navigator and Oceania Insignia will become part of a potentially high growth company in the nascent residential cruising space. The terms of the deal weren't disclosed, but it appears NCL will have some type of ongoing participation in the venture. This is bold deal-making. If cruise interest sinks, NCL won't miss these older vessels. If the market resumes its growth, newer ships are coming online in the next couple of years for all three NCL brands. The end result will be younger, more attractive fleet. This is a great example of finding new markets for existing products – something every CMO should appreciate. This shift suggests we may be seeing the emergence of two distinct cruise segments: traditional vacation cruises on newer vessels, and residential cruises on repurposed older ships. Both models serve different customer needs and allow cruise companies to optimize their fleets for profitability. I find the high-powered backing for the new Crescent Seas fleet and its five-ship plan particularly interesting. The serious players in that venture could well de-risk and legitimize the still-nascent residential cruise concept. If their first two ships sail on schedule and sell most of their condos, look for other major cruise players to repurpose their older vessels for that market.
Euronews
18-04-2025
- Business
- Euronews
Floating homes and Michelin meals: This new cruise promises a permanent holiday
ADVERTISEMENT If you've ever lamented that your holiday is over too soon, one cruise line has an enticing offer – if you have a few million euros to spare, that is. Newly launched Crescent Seas, founded by former Norwegian Cruise Line Holdings chairman Russell Galbut, is offering 'floating homes' on its forthcoming fleet of residential cruise ships. The first of these ships is due to set sail in 2026. But a permanent residence comes with an eye-watering price tag. The lowest price starts at €570,000. The highest? A jaw-dropping €8.8 million. This cruise travels the world and never ends The company's first ship, a refitted version of the Regent Seven Seas Navigator, will host 210 private residences and embark on a global voyage , starting in December 2026. Forever cruisers can expect four-day port stops in destinations like the Seychelles, Singapore, Iceland and Barcelona, with onshore excursions designed to immerse travellers in local cultures . Three ships have already been confirmed: Navigator, Insignia – a former Oceania Cruises vessel set to relaunch in 2027 – and a new one dubbed The Ocean, expected to be finished in 2032. Two additional ships are in the pipeline for 2028 and 2029. Onboard, Crescent Seas promises all the trappings of ultra-luxury living, from Michelin-inspired restaurants, wellness centres and Starlink-powered co-working spaces to cooking classes and '6-star' service by white-gloved butlers. Related Mayor of Nice vows to ban 'floating hotels': Will he be able to ban cruises by the summer? Why your Caribbean cruise could cost more: Mexico introduces a new tourist tax Residents are also required to purchase around €30,000 worth of annual food and beverage credits. 'As a developer, I know real estate has always been defined by location, location, location, as we say. With Crescent Seas, we've eliminated that limitation,' Galbut told The Telegraph. 'Now, your home isn't bound to a single address – it moves with you, taking you to the world's most breathtaking destinations.' From the seven seas to space, the ultra-rich look beyond Crescent Seas isn't the only venture offering the wealthy a radical rethinking of how – and where – we live. While some opt for floating mansions, others have looked to the stars. From Richard Branson's Virgin Galactic to Jeff Bezos' Blue Origin, billionaire executives have put space tourism on the map for the world's elite. Earlier this year, US-based company Space Perspective opened bookings for its space balloon experience. For around €120,000, travellers can ascend to the stratosphere in a capsule the size of a lounge room, complete with a bar and bathroom. Related From wine-soaked spa treatments to living like a rockstar: Europe's most unusual luxury hotels 'You're guaranteed not to see a soul': Is this forest hideaway Europe's best spa? Elon Musk's Space X , meanwhile, has set sight on Mars. Though a one-way ticket is not yet on sale, applications for future missions have already opened, and some ultra-wealthy pioneers are queuing up to trade beachfront views for an expanse of red dust. Back on Earth, entire islands in places like the Maldives are being sold to buyers seeking the ultimate seclusion – like a gated community surrounded by the ocean. ADVERTISEMENT 'Homes that move with you' Crescent Seas isn't the first floating home for the super-rich, either. The World, a condo-like residential ship, has been circumnavigating the globe since 2002. Then there's Ville Vie's Odyssey. Billed as the world's first perpetual cruise , the ship offers multi-year, residence-style packages starting at around €2 million. Crescent Seas is aiming for a balance of both – privacy and full-time ownership, with the bonus of global adventure. 'Imagine travelling the world without ever leaving the comfort of your own home,' said Marisa Galbut, president of Crescent Seas. ADVERTISEMENT For those with millions to spend, the dream of a home that moves with you, whether through the waves or the stratosphere, is no longer the stuff of fantasy, as the limits of luxury travel drift further from solid ground.
