Oceania Plans Two 1,260-Passenger Newbuilds
Published Thursday, March 15th 2007 - Updated Thursday, December 13th 2007
Oceania Cruises signed a memorandum of agreement to build two 1,260-passenger, 65,000-ton ships for delivery in fall 2010 and summer 2011. The ships -- each valued at $500 million -- would be built at Fincantieri's shipyard in Genoa, Italy. The agreement includes an option for a third vessel for delivery in the second quarter of 2012. The deadline for firming up the orders is mid-May while the option would have to be exercised by September 2009. The agreement was announced Wednesday at the Seatrade Cruise Shipping Convention in Miami Beach.
"This is one of the Top 10 days of my life and one of the top two or three days in the history of Oceania Cruises," said Frank Del Rio, chairman and CEO of Oceania. "We started this company in 2003 with $14 million in capital."
Two weeks ago, equity firm Apollo Management invested $850 million to become the majority shareholder of Oceania, giving the line the capital it needs to expand. Oceania now operates three 684-passenger ships that were originally built by Del Rio's former company, the now-defunct Renaissance Cruises. The new ships will be more than twice the size of the current 30,277-ton ships, but Del Rio said the newbuilds will maintain the "country club atmosphere similar to a high-end European boutique hotel."
Staterooms will be about 50 percent larger, he said, with 96 percent having ocean views and 93 having private balconies. The 438 Concierge-level staterooms will measure about 300 square feet while the 125 Penthouse Suites will be about 500 square feet. Each ship will have two 2,500-square-foot, two-level Owner's Suites with private elevators and outdoor hot tubs. Other accommodations will include six Vista Suites at the front of the ship and 14 new 1,000-square-foot Oceania Suites on the top deck midships. There will be 26 inside cabins. The ships will boast food and wine enrichment centers for "culinary theater," Del Rio said, as well as movies at night.
Despite the size and cost of the ships, Del Rio maintains Oceania will be able to maintain its relatively affordable pricing for what will remain an upper-premium product. The line regularly offers two-for-one pricing and free economy air. "We want to maintain the price point of about $350 per day," Del Rio said. "It's a sweet spot in the industry.…We don't want to be in the luxury category." The new ships will also have six open-seating restaurants -- including a new Pan-Asian eatery and a French bistro -- that will carry no surcharges. Seating in all restaurants will equal 150 percent of the ship's capacity in a single sitting.
"This is one of the Top 10 days of my life and one of the top two or three days in the history of Oceania Cruises," said Frank Del Rio, chairman and CEO of Oceania. "We started this company in 2003 with $14 million in capital."
Two weeks ago, equity firm Apollo Management invested $850 million to become the majority shareholder of Oceania, giving the line the capital it needs to expand. Oceania now operates three 684-passenger ships that were originally built by Del Rio's former company, the now-defunct Renaissance Cruises. The new ships will be more than twice the size of the current 30,277-ton ships, but Del Rio said the newbuilds will maintain the "country club atmosphere similar to a high-end European boutique hotel."
Staterooms will be about 50 percent larger, he said, with 96 percent having ocean views and 93 having private balconies. The 438 Concierge-level staterooms will measure about 300 square feet while the 125 Penthouse Suites will be about 500 square feet. Each ship will have two 2,500-square-foot, two-level Owner's Suites with private elevators and outdoor hot tubs. Other accommodations will include six Vista Suites at the front of the ship and 14 new 1,000-square-foot Oceania Suites on the top deck midships. There will be 26 inside cabins. The ships will boast food and wine enrichment centers for "culinary theater," Del Rio said, as well as movies at night.
Despite the size and cost of the ships, Del Rio maintains Oceania will be able to maintain its relatively affordable pricing for what will remain an upper-premium product. The line regularly offers two-for-one pricing and free economy air. "We want to maintain the price point of about $350 per day," Del Rio said. "It's a sweet spot in the industry.…We don't want to be in the luxury category." The new ships will also have six open-seating restaurants -- including a new Pan-Asian eatery and a French bistro -- that will carry no surcharges. Seating in all restaurants will equal 150 percent of the ship's capacity in a single sitting.
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