Apollo preparing for Exit?

[Travelcat2]

I think that most people agree that the current business model has been extremely successful. It is too early to tell if the new concierge program will affect Regent's bottom line. With Crystal's new all-inclusive program and Silversea tightening up their smoking policy, the competition in 2012 will be quite interesting.

[AWED23]

I think that most people agree that the current business model has been extremely successful. It is too early to tell if the new concierge program will affect Regent's bottom line. With Crystal's new all-inclusive program and Silversea tightening up their smoking policy, the competition in 2012 will be quite interesting.

....Interesting indeed...Silverseas was the first cruiseline we sailed on that was all inclusive. That was January of 1999 from Valparaiso to Rio and really was quite nice.... Seabourn, before it was sold to Carnival, was all inclusive except for alcoholic beverages. We were on the Pride when the sale was announced after we had left Boston for a 2 week Fall Colors cruise in 1997..Now Crystal has awakened to reality and discovered that perhaps they are not as perfect as they and their fully "Crystalized" regulars believed...I, for one, am very pleased with Regent and glad to see immitators pop up....On another note, I was just looking at the deck plan of the Mariner and see that the Deck we book on (deck nine) has side by side pictures showing the present cabin clssifications and those that go into effect on April 2, 2012....What was/is E cabins will become a mix of D-E-F going from midship back to the stern...

[Travelcat2]

AWED23: Yes -- they changed categories on all three ships. They even took a "D" category suite on the Navigator and changed it to a Penthouse (601 -- in the front of the ship -- very noisy early in the morning but large).

 

I "think" I'm still happy with Regent. Our January cruise was amazing in every way. Our Silversea cruise last month was also wonderful and I prefer the Whisper to any ship we have been on (especially the separated bathroom -- but that is another issue:-) We will be on a 21 night cruise on the Voyager in November and have no other Regent cruises booked until November, 2012. Actually, we have no cruises booked at all. We are waiting to see how the cruise is later this year. Will it be as good as our January cruise. . . . or, will it be more like the mediocre reviews that I've read lately?

[Threechicks]

It will be good if you expect it to be good. Just go and expect to have a good time and you probably will. Too many on this board go looking for problems and of course they find them. My cruise from Rome to Southampton on the Voyager last month was one of the best I have taken. I know that a few others on this board strongly disagree with me but their opinion does not influence how I feel. They have a right to their opinion and so do I.

[lkakers]

An observation that "small ships are not profitable" and "no one is building them". Silversea brought out the Silver Spirit (540 pax) a year and a half ago. Seabourn has 3 identical new ships (2009-2011) that have 450 pax each. They didn't build these to lose money!

We were on the Wind Surf in January - first time on a WindStar ship. Liked it, but didn't love it. Certainly not a luxury cruise; wouldn't even call it premium (Oceania & Azamara).

 

I, personally, would do just about anything to avoid the large ships, now that I've been on the small ones. I've been on 2 Windstar cruises (both on the smaller ships -- the 148-pax ships rather than on the 350-pax behemoth Wind Surf, LOL) and I'd do several a year if I had more money and a more open schedule. Love them -- they're not exactly "luxury" but to me, they're close... but they're VERY laid back. If that's not your style, they'll diminish in "class" for you. Plus, from my sources, I'm assured that the smaller ships are more charming and, perhaps unsurprisingly, seem more exclusive. They have fewer bells and whistles than the big ship, but it's easier to feel like it's your own private yacht with a large party on it!

 

 

It appears that Seabourn now has too much capacity to fill -- they end up heavily discounting many itineraries. Unfortunately, the Silver Spirit is being shunned by passengers and crew alike (per the Silversea board, passengers and crew that we have spoken with). They took her off of the world cruise and have her doing short itineraries.

 

Regent seems to have the ship size correct -- even though they would like to build a ship with closer to 1,000 passengers. I would think that small ship builds would not be happening if they are not profitable. Think about how many cabins you have to fill on RSSC or Carnival to equal the cost of one suite on Regent.

 

Well, yes. And keep in mind that the Regent ships are all classified as "small."

[Texan1636]

Interesting to speculate, but it's hard to know what the facts are. The NYTimes piece did not seem to me to be the kind of puffery that you typically expect see leading up to an IPO. Del Rio even said that Oceana and Regent compete against each other. Regent cannibalizing Oceania's customers (or vice versa) doesn't sound like a selling point to IPO investors.

 

As for other exit strategies, it does seem doubtful that Carnival is the right fit (given the Seabourn ownership), but I wonder whether Royal Caribbean might be interested in playing in this space (maybe combining Azamara with Oceania) - or might Apollo think there's something to be gained in terms of overall synergies by transferring to Norwegian (where Apollo already has an ownership stake)? The luxury (or near luxury) cruise space sounds like a tough place to make a go if you're a stand-alone operator.

 

Don't know what any of this may mean for Regent's future. We've enjoyed Regent, but we're trying the Seabourn Sojourn to Norway in late July.

[RachelG]

It will be good if you expect it to be good. Just go and expect to have a good time and you probably will. Too many on this board go looking for problems and of course they find them. My cruise from Rome to Southampton on the Voyager last month was one of the best I have taken. I know that a few others on this board strongly disagree with me but their opinion does not influence how I feel. They have a right to their opinion and so do I.

 

You are exactly right!

[countflorida]

When you lay out $500-$600 per day per person for a luxury cruise, you expect NOT to be ripped off. I felt that the extra charges for the specialty restaurant and the Internet on Silversea were excessive, and don't understand why a top-notch cruise line like Silversea (and it is top-notch) would stoop to such tactics to spiff up revenue a little, when they are attempting to present a very high quality experience. It's just bothersome.

 

In another case recently on Oceania, we had a Penthouse suite where the line provided a laptop for our use. Luckily I read the small print AND asked - they charged $.95 CENTS PER MINUTE for any use of that computer! Even just using it to edit your own document, or to play solitaire. And the wine prices on Oceania were just outrageous - up to 4 to 5 times the retail cost in the US; I checked a few when we got back.

 

Today, using the Internet is not an option; for many of us it's essential. To me, it's sort of like charging extra for soap or towels in the bathroom. And gouging a client in a captive situation is a sure-fire way to avoid repeat customers.

 

We've also tried Crystal, Cunard, Holland-American, and Princess, but we keep coming back to Regent. Overall, we think it's the best. We were going to try Crystal, and may yet - we actually liked the idea of having a spending account TO USE AS WE SAW FIT as an alternative to the all-inclusive-near-everything of Regent, and wanted to try it. But now they've gone all-inclusive, and we're too busy this year and next to go anywhere but the four relatively long cruises (15-12-16-27 nights) we've booked on Regent through November 2012.

 

PS: other than in really exceptional circumstances, we don't stay in hotels that charge extra for soap, towels, or Internet access; we consider that a deal-breaker!

[Stevanb]

First of all how can you compare Crystal, Cunard, Holland-American, and Princess, Oceania

 

The prices are so different

 

On the Internet if it was free it would be so slow do to the bandwidth is bad when people are paying I can imagine if it was free

 

Oceania has the highest internet at .80 per minute in bulk

 

Silver Sea cost us .45 in bulk on Holland and Princess we get 100 minutes for free and I use it only for business emails . I need about 5 minutes per day.

 

BUT i use my own laptop.

 

 

To Responder I was talking about Silver Sea not Regent giving On board Credit instead of free excursions if they decide to do it

[Wendy The Wanderer]

W

In another case recently on Oceania, we had a Penthouse suite where the line provided a laptop for our use. Luckily I read the small print AND asked - they charged $.95 CENTS PER MINUTE for any use of that computer! Even just using it to edit your own document, or to play solitaire.

 

Good grief, can that be? How did they charge you by the minute to use the laptop if you weren't connected to the internet?

 

Today, using the Internet is not an option; for many of us it's essential. To me, it's sort of like charging extra for soap or towels in the bathroom. And gouging a client in a captive situation is a sure-fire way to avoid repeat customers.

 

PS: other than in really exceptional circumstances, we don't stay in hotels that charge extra for soap, towels, or Internet access; we consider that a deal-breaker!

 

I agree with you on this. The cruise lines should really get their acts together on this. Yes, I get free internet on Regent, but bandwith is terrible--surely the technology exists now to fix this.

[Stevanb]

I agree with you on this. The cruise lines should really get their acts together on this. Yes, I get free internet on Regent, but bandwith is terrible--surely the technology exists now to fix this

 

 

Bandwidth is a problem using the satellite . Plus if it is free why should they buy more bandwidth.

[Wendy The Wanderer]

Bandwidth is a problem using the satellite . Plus if it is free why should they buy more bandwidth.

 

I agree that bandwidth is probably still a problem for satellite, but I also believe available technology has improved, but I could be wrong.

 

Let me see if I understand you: Regent, because they give away free internet to so many passengers, has no incentive to make it faster. Is that your reasoning?

[Stevanb]

I agree that bandwidth is probably still a problem for satellite, but I also believe available technology has improved, but I could be wrong.

 

Let me see if I understand you: Regent, because they give away free internet to so many passengers, has no incentive to make it faster. Is that your reasoning?

 

 

No what I meant if it is free people will be on line like you do at home all the time and by doing that it makes it slower due to bandwidth on the Satellite. ALso they have no way of making it faster really at the present time

 

And if they allow Skype it makes it worse . Most ships will not allow Skype do to bandwidth

[hondorner]

Good grief, can that be? How did they charge you by the minute to use the laptop if you weren't connected to the internet?.

This did not used to be true. They recently switched internet providers (to the same company that provides a majority of the cruise lines), and that company reset the interface so that connecting to the ship's network is required, and that automatically connects one to the internet.

 

I first experienced it on Marina this past January and February, and frankly, it's terrible. I voiced my opinion firmly, but if they are still doing it, I had no effect. I join Regatta tomorrow for the first time since the new provider took over, and will discover that situation at that time.

 

I bring my own small, lightweight computer to write a journal and play an occasional game of FreeCell; I find I can do very well without internet or email for 12 days; but then, I'm retired and have no pressing need to communicate.

 

However, if I was still in business and needed to connect, I would do so under any conditions and simply bite the bullet. If my business didn't support that, then internet access to the business may not be working as well as some think.

[TheSeaAroundUs]

In addition to the limited bandwidth of the satellite connection, I learned from the computer tech on Mariner in March this year that the ship has only one block of 255 IP addresses to work with. SO, that's why you keep having to re-connect when you get kicked off -- there aren't enough addresses for everyone on board.

 

I don't know how possible, or easy, it is to add a whole 'nother address block. Maybe they'd need an entire additional xmitter/rcvr pair. Maybe maritime regs forbid more than one per ship? Even if not, though, it would surely be expensive, perhaps doubling that cost. And if they needed more hardware, how much would _that_ cost, and do they have a place to mount it, and cabling etc.... Who knows?

[countflorida]

Steranb, you compare similar rooms and services - on Oceania, a Penthouse is about the same sq.ft. as a standard suite on Regent, or as a mini-suite on Princess, or. . . You get the idea. Then you adjust for items and services one includes the other doesn't, such as liquor, Internet access, laundry, excursions, a hotel room the night before embarkation (easy in this case, because if you don't take it, you get a $300 credit), and so forth. Often, it turns out that the all-inclusive luxury cruise is equal or even less expensive. Of course, that assumes that you actually want and use the included items, which is where we have a problem. We drink, but quite moderately. We don't much like excursions; we prefer to get a small group together and make our own arrangements, skipping the shopping and doing only what we want to do. We've tried lots of alternatives to Regent, because we think its food and service gone down from the Radisson days, despite all the included additions. On balance, we keep coming back because we think, for us (not necessarially for everyone), it's the best.

 

Wendy, you had to log in just to use the computer, and once you logged in, the meter began to run. Oceania did have bulk deals, but we were on a 24-day Miami-Amazon-Miami cruise and the “best”1200 minute package cost $540! That to get us less than one hour of “access” per day! And the response was dismal, as slow as the proverbial molasses in July at the South Pole! A TOTAL RIP-OFF! Fortunately, I had brought my laptop, and we used Internet Cafes along the way, and survived. But we won’t be cruising with Oceania again!

[Wendy The Wanderer]

Oh boy, big mistake on Oceania's part. And interesting about the 255 IP addresses--that's certainly not going to cut it on a Regent ship, with many pax having free internet, and smartphones and tablets being de rigeuer these days.

[tombo]

I'm pretty sure Regent ships have moree than one satellite connection. All of the television channels except Fox News come in on one satellite. Fox News shares a different satellite, the same one as the internet and telephone service. I'm sure that for some, having Fox News 24/7 is of prime importance. I'd personally have better internet connectivity.

[Threechicks]

I suggest we start a new thread. This is way off topic now from the original title.

[commodore2010]

Of course Apollo is preparing for an exit. That is what THEY do and I am sure it will be a profitable exit for them.

 

Regent just sold 225M of bonds.

 

"Last week, Seven Seas Cruises S. DE R.L., the indirect owner of Regent Seven Seas’ three luxury cruise vessels successfully issued $225 million of 9 1/8% senior secured notes due in 2019. Due to strong demand the offering, sold at par, was upsized from $200 million to $225 million and priced at the tight end of price talk. The notes were rated B- and B3 respectively by Moody’s and S&P. The issuer is owned by Prestige Cruise Holdings Inc., a holding company which also owns Oceania Cruises and is itself ultimately controlled by Apollo Management."

 

Stong demand, selling at par, and oversold is a good indicator the market believes in the business model.

What they are doing with the money is anyones guess. Maybe a for a new build, maybe to refinance from the prior sale. Who knows, but one thing is certain, Apollo will sell when the market is right and they feel they can maximize the profits. My guess is that it will not be sold to another operator, but Prestige will go public.

[kvisf]

Here is Moody's explanation of a "B" rating

 

"Bonds which are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small."

 

With a coupon over 9%, and a senior secured position, no wonder these sold strongly. Nevertheless, at a B- rating from Moody's, these are certainly "junk" bonds. The fact they were oversubscribed at par is just as likely to indicate a high degree of confidence in the value of the collateral, as it does confidence in the Regent business model.

[evalseraphim]

I noted the interest rate too. If you don't mind the risk, that has the potential to be one of the better returns you can get these days.

[evalseraphim]

This did not used to be true. They recently switched internet providers (to the same company that provides a majority of the cruise lines), and that company reset the interface so that connecting to the ship's network is required, and that automatically connects one to the internet.

 

I would suggest reading your computer's manual to learn how to turn off your WiFi antenna. That will keep you from having to connect when you are not using the internet. Although I have not experienced it myself (yet), I believe you should also be able to decline the connection - although it is possible that a dialog box will continue to pop up asking you to connect (which would be annoying).

[gnld]

I would suggest reading your computer's manual to learn how to turn off your WiFi antenna. That will keep you from having to connect when you are not using the internet. Although I have not experienced it myself (yet), I believe you should also be able to decline the connection - although it is possible that a dialog box will continue to pop up asking you to connect (which would be annoying).

 

My laptop has a little slide switch on the front that I can use to turn on or off the wi-fi signal. When on, a small light glows by the switch.

[Travelcat2]

This thread is already competely off-topic, so I decided to add to it (only a little off topic).

 

Just read that NCL filed for an IPO under the name Norwegian Cruise Lines Holding, Ltd. The interesting thing was the owners of the cruise line that were listed. Apollo's portion is less than I thought:

 

50% Genting HK

37.5% Apollo

12.5% TPG Capital