Genting Hong Kong to sell 35% stake in Dream Cruise to North American investors

Genting Hong Kong, the largest cruise shipping group headquartered in Asia, said it would sell 35% of its Dream Cruises premium market unit to TPG Capital Asia, TPG Growth and Ontario Teachers’ Pension Plan.

“The consideration for the 35% equity interest is US$489 million, valuing Dream Cruises total equity at US$1,397 million. With assumption of net debt of US$1,871 million, the enterprise value of the transaction is US$3,268 million. The transaction will result in a gain of approximately US$470 million, which will increase the net asset value of each GHK shares by US 5.5 cents or HK 43 cents,” Genting Hong Kong said in a statement

The purchase will be made in two tranches, with the first guaranteed tranche of at least 24.5% for US$342 million expected in September, and a second tranche of up to 35% in total expected by December of 2019. Additional incentive payments will be paid on achievement of certain profitability level of Dream Cruises and delivery of each of the Global Class ships.

"Dream Cruises is the premium brand for the fast growing Asian-sourced cruise passenger, with the vision that they will be able to cruise globally in all regions of the world with Dream Cruises,” said Tan Sri KT Lim, Chairman and CEO of GHK.

“The investment by TPG and Ontario Teachers’ will help Dream Cruises to have the youngest and technologically most advanced fleet of quality German built cruise ships with legendary Asian service. And we are delighted to partner again with TPG as we did on Norwegian Cruise Line Holdings Ltd. in 2008,” he added.

 

The two Global class ships will be of 204,000 gross tons and they are on order at MV Werften, which is also owned by Genting Hong Kong.

Color Line takes delivery plug-in hybrid ferry from Ulstein Werft

Color Line has taken delivery of the world’s largest plug-in hybrid ship Color Hybrid. The ship sets a global standard for environmentally friendly ships, and represents a significant upgrade of the shopping and adventure offerings for travellers between Norway and Sweden. The maiden voyage goes from Sandefjord to Strømstad on August 9.

Color Hybrid employs new solutions to reduce noise and emissions. The ship is a plug-in hybrid, and its five-megawatt hour batteries are charged via a power cable with environmentally friendly power from shore power plants on the quay in Sandefjord. The ship will sail in and out of the Sandefjord fjord virtually silently and without emissions of harmful environmental gases, or nitrogen and sulfur compounds to the air in the area.

The battery pack weighs 65 tons and can be charged in one hour. In addition, the ship has a large heating reservoir of 5 megawatt-hour capacity that utilizes waste heat from both the engine cooling water cycle and exhaust gases for heating purposes onboard. This, together with an optimal hull construction, helps to make the ship energy efficient and environmentally friendly.

Color Line bases its investments on the efforts of the authorities and the international community to reduce greenhouse gas emissions. "Construction of the world's largest plug-in hybrid ship is in line with the company's ambitions for further development of sustainable and environmentally friendly solutions for Norwegian shipping," says Trond Kleivdal, CEO of Color Line. Over 70% of the suppliers are from the maritime cluster in Norway, representing the very best of the Norwegian maritime industry.

With its innovative and environmentally friendly solutions, the ship is an important project for Ulstein Verft and the maritime cluster. "We would like to thank Color Line for a very good and constructive collaboration throughout the construction period," says Gunvor Ulstein, CEO of Ulstein Group.

The new ship will provide an improved travel experience and set a new standard for comfort. Shopping and service offerings onboard will be expanded and improved, with large stores and three great eateries with a rich variety of food and drink. On deck there will be a greenhouse powered by residual heat where herbs and vegetables, among other things, will be grown and served on board. Guests with a love of the sea will surely seek out the additional ”bridge” wing at the stern, built for passengers. A glass floor will allow guests to follow the waves and the ship's rhythm with a direct view to the open sea.

The world's largest plug-in hybrid ship is 160 meters long, with a capacity of 2,000 passengers and around 500 cars. The ship will provide significantly increased capacity on the route between Norway and Sweden.

Miami Dolphins cheerleaders cruise onboard MSC Seaside and Meraviglia for their annual photo shoot

Photo credit: Miami Dolphins

The Miami Dolphins Cheerleaders, one of the most beloved cheer organizations in the National Football League, have officially wrapped up their 2019 annual photo shoot sailing aboard MSC Cruises’ innovative smart ships, MSC Seaside in the Caribbean and MSC Meraviglia in Northern Europe. More than 13 of the Miami Dolphins Cheerleaders participated in this year’s photo shoot, themed “Dance Unites the World,” set to be released in Fall 2019.

This marks the second year that MSC Seaside, MSC Cruises sun-seeking ship sailing year-round from Miami to the Caribbean, hosted the cheerleaders for their annual photo shoot. The ship’s iconic “beach condo” architecture and wealth of outdoor space are what the ship has become known for, ideal for vacationers looking to spend their getaways under the sun. A handful of the cheerleaders took their cruise overseas, traveling to Northern Europe on board the stunning MSC Meraviglia, the ship for all seasons, getting a preview of the ship before she arrives to North America for the first time this October.

“MSC Cruises is proud to offer its guests enriching and authentic cruise experiences both on board and ashore, which is why MSC Seaside and MSC Meraviglia served as the perfect backdrop for this year’s photo shoot, which focused on immersive cultural learning,” said Ken Muskat EVP and Chief Operating Officer of MSC Cruises USA. “Our partnership with the Miami Dolphins continues to be a natural fit, since both of our brands value discovery, connecting with people from all over the world, and engaging in educational and cultural experiences.”

On both sailings, the cheer squad enjoyed an enriching on board experience, inspired by MSC Cruises’ European heritage, as well as being immersed in the local culture of the ships’ iconic ports of call. On board, the ladies dined on gourmet, international cuisine including Spanish bites at Hola! Tapas on board MSC Meraviglia, created by two Michelin-starred chef Ramón Freixa; and, a fusion of pan-Asian cuisine on board MSC Seaside’s Asian Market Kitchen, from its pioneer, celebrity chef Roy Yamaguchi.

While in port, the Cheerleaders experienced the Caribbean destinations of Ocho Rios, Jamaica; Cozumel, Mexico; George Town, Cayman Islands; and Nassau, Bahamas. And, in Northern Europe, the cheerleaders visited Kiel, Germany; Copenhagen, Denmark; and cities in Norway, including Helleysylt, Molde Fjord, and Flaam. With this year’s photo shoot theme, “Dance Unites the World,” the images focused on movement and dance, with the backdrop of scenic locations within each city. In addition to the photos, the cheerleaders placed a priority on reaching out to the locals, hosting cross-cultural dance classes and partaking in a traditional lunch reflective of the local culture.

A few highlights of the cheerleaders’ in-port experiences include:

– Ocho Rios, Jamaica: The cheerleaders hosted a cross-cultural dance class with Too Kool Dance Crew . Then, the team headed to Dunn’s River Falls to capture photos of the cheerleaders at the iconic locale. The ladies finished the day with a meal of traditional Jamaican jerk.

– Cozumel, Mexico: The team began the day at a local school, Escuela Secundaria General “Carlos Monsivais,” for a dance lesson with the students. Then completed their photo shoot at the Mayan Ruins before enjoying a seafood lunch at a Cozumel staple with beautiful ocean views.

– George Town, Cayman Islands: The Miami Dolphins cheerleaders hosted a dance clinic with Dreamchasers, a local dance troupe, at the Harquail Theatre. The team took photos at the Cayman Turtle Centre, a local conservation center, and enjoyed lunch.

– Copenhagen, Denmark: The squad hosted a clinic with Global Kidz and visited the iconic sites of Rosenborg Castle and Nyhayn Harbor.

– Kiel, Germany: The cheerleaders enjoyed a dance clinic with Ballet-in-Kiel and Kiel Baltic Hurricanes Cheerleaders as well as captured images throughout the week of the signature locale.

Beyond the photo shoot, the Miami Dolphins also held their second annual Dolphins Fan Cruise on board MSC Seaside in March. Dolphin fans sailed the sunny Caribbean while also getting up close and personal with Dolphins alumni including Kim Bokamper, Troy Drayton, Mark Duper, Nat Moore, John Offerdahl and Joe Rose. The legends participated in meet and greets, photo opportunities and autograph sessions with fans, and also shared insider stories from their time on the team.

The Miami Dolphins Fan Cruise is the result of a three-year, one-of-a-kind partnership between MSC Cruises and the world-renowned NFL team. The third themed Fan Cruise will be hosted annually in 2020, where guests can continue taking advantage of exciting activities and opportunities to interact with the Dolphins’ alumni.

RCCL’s Fain challenges overcapacity concerns

Concerns over possible overcapacity at a time when the cruise industry as a whole and Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, itself are both experiencing strong supply growth miss an important point, said Richard Fain, Chairman and CEO of the Miami based company.

There are a total of 125 cruise ships on order, according to Shippax Info, a Swedish cruise and ferry business publication.

Speaking at a conference call on 25 July, when the company unveiled its second quarter interim results, Fain said that instead of overcapacity, people should talk about supply/demand balance.

“Overcapacity implies static demand and variable supply. But the opposite is true,” he said. While a hotel operator in Dallas, Texas, can only grow its business by trying to grab a larger slice of the market there, the cruise industry enjoys a far greater degree of elasticity.

Fain mentioned “Perfect Day at CoCo Cay,” a private island experience in the Bahamas as an example: the concept has attracted very strong demand that has driven prices of cruises calling here up faster than at the Caribbean programmes of the group as a whole. Yet the driver of this development has mostly come from people who have not taken a cruise before, rather than from other cruise lines.

Whereas Carnival Corporation & plc, the world’s largest cruise shipping group, recently pointed out to weakness in some of its Continental European businesses in the second quarter of its financial year to 31 May, RCCL was more optimistic. Jason Liberty, CFO, said that the group had experienced “modest violatility” from its European guests, but this had been more than offset by strong demand in North America. In the UK, bookings had accelerated at double digit percentage rate in the past three months after a slow start of the year.

RCCL increased its net income to $472.8 million in the second quarter of this year from $466.3 million in the same period last year. Operating income rose to $573.6 million from $456.9 million and total revenues to $2.81 billion from $2.34 billion, RCCL said in a statement.

 

 

 

Michael Goh named new President of Dream Cruises

Genting Hong Kong Limited has announced the appointment of Michael Goh as the President of Dream Cruises and Head of International Sales for Genting Cruise Lines. Michael Goh will continue to be based in Singapore, reporting to Kent Zhu, President of Genting Cruise Lines.

Michael Goh joined Genting Hong Kong 20 years ago and was the Senior Vice President of International Sales for Dream Cruises, Star Cruises and Asian sales and marketing for Crystal Cruises. With over 30 years of extensive experience in the Asian hospitality industry, Michael Goh is well placed as the President of Dream Cruises to lead the cruise line into its next chapter of growth.

“Michael’s long experience developing the Asian cruise industry with Genting HK and as a key member in the start-up of Dream Cruises will further strengthen the brand with his appointment as President of Dream Cruises. With his strong relationships in the travel industry, he will lay the sales and marketing strategies for the successful arrival of the first of two 204,000 gross ton Global Class ships in 2021,” says Tan Sri KT Lim, Chairman and Chief Executive Officer of Genting Hong Kong.

On his appointment, Michael Goh says: “When I look back over the past 20 years developing the cruise business with Genting HK, I am proud of our collective team efforts and the challenges we have overcome along the way. I look forward to this next chapter as President of Dream Cruises and the possibilities that lie ahead.”

“On behalf of Dream Cruises, I thank our trade partners, government representatives, tourist promotion boards and the media for their continued support, and look forward to working together over the coming years to further develop our brand and the cruise industry as a whole,” he added.

Of the present Dream Cruises fleet, two “Dream Class” ships have homeports in Hong Kong, Guangzhou and Singapore, with some additional deployment to Taiwan. The third ship, Explorer Dream is currently on her summer seasonal deployment in Shanghai, Dalian and Tianjin. During the winter, Explorer Dream will embark on her maiden voyage outside of Asia with deployment to Australia and New Zealand.

Two Global Class ships of 204,000 gross tons each are currently being built at MV Werften, renowned for its quality German engineering and construction, and have been designed with cutting edge technology for a uniquely immersive and “better-than-world-class” digital experience for Asian cruise guests, who are leading the trend in digital adoption. The official launch of the Global Class ships will be made during IBTM China, the leading event for the MICE industry in China, on August 28 and 29 this year in Beijing and ITB Asia, the largest tourism trade show in Asia, on October 16 to 18 this year in Singapore.