RCL to Sell Century to CTRIP

[FIRELT5]

http://www.rclinvestor.com/mobile.view?c=103045&v=203&d=1&id=1963102

[cruisestitch]

Wow!

 

Celebrity Century will complete its scheduled sailings through the March 22, 2015, itinerary. The 15-night, Dubai to Rome sailing on April 5, 2015 is being redeployed to a 14-night sailing from Dubai to Singapore. Guests with affected individual bookings and named group bookings on Celebrity Century's April 5, 2015 sailing from Dubai to Rome have the option to either cancel their booking and receive a full refund or move to an alternative sailing and receive a re-accommodation onboard credit as well as compensation to cover air change fees. Guests with reservations affected by the transition will be proactively contacted by Celebrity Cruises. Guests and Travel Agents with specific questions are welcome to call 1-888-283-7275.

[cruisestitch]

Here's the whole article:

 

Royal Caribbean Cruises Ltd. to Sell Celebrity Century to Ctrip

 

MIAMI, Sept. 2, 2014 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) announced today that it has entered into an agreement to sell its cruise ship Celebrity Century to Exquisite Marine Ltd., a holding company led by Ctrip.com International Ltd. (NASDAQ: CTRP). The sale will result in a non-cash loss of approximately $20 million dollars. This loss will be excluded from our adjusted net income in our third quarter results. Royal Caribbean Cruises Ltd. will continue to operate Celebrity Century until April 2015.

 

"Since its inaugural sailing, Celebrity Century has created many wonderful memories for hundreds of thousands of guests, and we expect this successful history to continue as she transitions to the Chinese cruise market," said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd. "The vessel's sale is an excellent business opportunity for both Royal Caribbean and Ctrip, and will generate strong value for both companies' shareholders."

 

Celebrity Century will complete its scheduled sailings through the March 22, 2015, itinerary. The 15-night, Dubai to Rome sailing on April 5, 2015 is being redeployed to a 14-night sailing from Dubai to Singapore. Guests with affected individual bookings and named group bookings on Celebrity Century's April 5, 2015 sailing from Dubai to Rome have the option to either cancel their booking and receive a full refund or move to an alternative sailing and receive a re-accommodation onboard credit as well as compensation to cover air change fees. Guests with reservations affected by the transition will be proactively contacted by Celebrity Cruises. Guests and Travel Agents with specific questions are welcome to call 1-888-283-7275.

 

Celebrity Century joined the Celebrity Cruises fleet in December 1995, and was built by Meyer Werft in Papenburg, Germany. The 71,545-ton ship carries 1,814 guests (double occupancy) and 860 crew.

 

Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) is a global cruise vacation company that owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined total of 41 ships with an additional 8 under construction contracts. They operate diverse itineraries around the world that call on approximately 490 destinations on all seven continents. Additional information can be found on http://www.royalcaribbean.com, http://www.celebritycruises.com, http://www.pullmantur.es, http://www.azamaraclubcruises.com, http://www.cdfcroisieresdefrance.com or http://www.rclinvestor.com.

 

Ctrip.com International, Ltd. is a leading travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. Ctrip aggregates accommodation and transportation information to enable business and leisure travelers to make informed and cost-effective bookings. Ctrip also helps customers book vacation packages and guided tours. In addition, Ctrip corporate travel management services help corporate clients effectively manage their travel requirements. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel brands in China.

 

SOURCE Royal Caribbean Cruises Ltd.

 

Rob Zeiger, 305-539-6012, rzeiger@rccl.com, Investor Contact: Laura J. Hodges, 305-982-2625, lhodges@rccl.com

[WestLakeGirl]

Is this for real?

[gold1953]

Now I don't feel so bad about cancelling this cruise.

[eroller]

Seems odd to essentially arm the competition with new tonnage. Royal Caribbean is attempting to enter China in a big way, and now is their chance to make a footprint before the market really explodes and perhaps even becomes temporarily saturated. Selling off tonnage to what amounts to your future competition seems counterproductive.

[Orator]

Seems odd to essentially arm the competition with new tonnage. Royal Caribbean is attempting to enter China in a big way, and now is their chance to make a footprint before the market really explodes and perhaps even becomes temporarily saturated. Selling off tonnage to what amounts to your future competition seems counterproductive.

 

Perhaps there's more to the deal than we will ever know. Perhaps the China market was a consideration in selling to a company based in China? I don't see why there would be a loss since they are the sellers and will no longer be responsible for the ship. It was affine ship, but it's glory was in the past. It was time to let it go.

[WestLakeGirl]

But wasn't it all set up to move it to their French line? Wha' happened?

[Andy]

Seems odd to essentially arm the competition with new tonnage. Royal Caribbean is attempting to enter China in a big way, and now is their chance to make a footprint before the market really explodes and perhaps even becomes temporarily saturated. Selling off tonnage to what amounts to your future competition seems counterproductive.

 

Hi Eroller,

 

I agree to an extent. As RCCL is putting relatively newer tonnage in the region, they may feel that Century may not be a huge threat to their future plans. As much as I love the ship, she's 19 years old.

 

As TUI just ordered new ships, I'm not at all surprised that Century is going elsewhere.

[cruisestitch]

I seem to remember that a few Cruise Critic regulars are booked on the cancelled cruise. I'm surprised that we haven't heard from any of them. Something seems very wrong about all of this….:confused::confused:

[Andy]

But wasn't it all set up to move it to their French line? Wha' happened?

 

Hi WestLakeGirl,

 

There were all sorts of rumors about Century. I believe many thought she was headed to Pullmantur. I remember stories of Pullmantur execs onboard, taking measurements ! It's another lesson on why not to believe the rumors, and to wait until the ink on the contract is dry :)

[Happy Cruiser 6143]

What happened to the sale to CDF which was announced a long time ago?

 

[Andy]

What happened to the sale to CDF which was announced a long time ago?

 

 

Hi Linda,

 

One can only presume it fell through. I'm somewhat surprised that CDF passed - as Century is a wonderful ship, but we'll probably never know the backstory.

 

If it was THAT difficult selling her, and, they are taking a non cash loss of 20 million dollars... IMO, it's too bad that Celebrity didn't keep her around for another couple of years, or give her to Azamara. Either way, they could have made a lot of guests very happy.

[claymour]

What happened to the sale to CDF which was announced a long time ago?

 

 

That is what they said, if this is true, I am sad. Would rather see her go to CDF.

[Cruising89143]

According to this article there may be another ship or two go. While it doesn't state a specific cruise line possibly the Legend and Splendour of the Seas? Fain did mention several months ago that they were looking at the older tonnage.

 

http://www.cruiseindustrynews.com/cruise-news/11515.html

Edited September 2, 2014 by cruisingator2

[eroller]

Hi Eroller,

 

I agree to an extent. As RCCL is putting relatively newer tonnage in the region, they may feel that Century may not be a huge threat to their future plans. As much as I love the ship, she's 19 years old.

 

As TUI just ordered new ships, I'm not at all surprised that Century is going elsewhere.

 

 

It is a shame she could not be kept in the "family" so to speak. CDF, TUI, or Pulmantur. Better yet, I would have loved to see her redone from stem to stern and sent to Azamara. I guess in the end RCCL decided that selling her was the most economic thing to do.

 

Well Celebrity is now rid of the trio of original newbuilds that were essentially the foundation of the brand.

[Cruising89143]

It is a shame she could not be kept in the "family" so to speak. CDF, TUI, or Pulmantur. Better yet, I would have loved to see her redone from stem to stern and sent to Azamara. I guess in the end RCCL decided that selling her was the most economic thing to do.

 

Well Celebrity is now rid of the trio of original newbuilds that were essentially the foundation of the brand.

 

Ernie one has to wonder about the future of CDF and Pullmantur. Carnival has decided to do away with the Iberocruceros brand for now and use the Costa brand that has newer ships to focus on that market. RCCL is trying to compete with second hand tonnage. Those ships are also very expensive to operate so maybe the decision has been made to start divesting themselves of the older ships.

[WestLakeGirl]

I have feeling that the Presidents Cruise might be a tad uncomfortable this coming year. For the President. A $20 million loss? Yikes!

[vulcan1971]

I seem to remember that a few Cruise Critic regulars are booked on the cancelled cruise. I'm surprised that we haven't heard from any of them. Something seems very wrong about all of this….:confused::confused:

 

Curt is on the Summit this week going to Bermuda. I think he was booked on the cancelled cruise.

 

Sent from my Samsung Note 2 on the T-Mobile 4G LTE Network

[ECCruise]

Curt is on the Summit this week going to Bermuda. I think he was booked on the cancelled cruise.

 

Sent from my Samsung Note 2 on the T-Mobile 4G LTE Network

 

Yes, Curt is definitely booked on the Dubai to Rome leg and was really looking forward to it.

[Celebrity Cruises]

Hi all,

 

Just got a copy of the press release. It may be an identical copy, but for transparency, and since Cruise Critic doesn't like duplicate threads we thought that some might want to see us "officially" post it.

 

Royal Caribbean Cruises Ltd. to Sell Celebrity Century to Ctrip

 

MIAMI – September 2, 2014 – Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) announced today that it has entered into an agreement to sell its cruise ship Celebrity Century to Exquisite Marine Ltd., a holding company led by Ctrip.com International Ltd. (NASDAQ: CTRP). The sale will result in a non-cash loss of approximately $20 million dollars. This loss will be excluded from our adjusted net income in our third quarter results. Royal Caribbean Cruises Ltd. will continue to operate Celebrity Century until April 2015.

 

“Since its inaugural sailing, Celebrity Century has created many wonderful memories for hundreds of thousands of guests, and we expect this successful history to continue as she transitions to the Chinese cruise market,” said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd. “The vessel’s sale is an excellent business opportunity for both Royal Caribbean and Ctrip, and will generate strong value for both companies’ shareholders.”

 

Celebrity Century will complete its scheduled sailings through the March 22, 2015, itinerary. The 15-night, Dubai to Rome sailing on April 5, 2015, is being redeployed to a 14-night sailing from Dubai to Singapore. Guests with affected individual bookings and named group bookings on Celebrity Century’s April 5, 2015 sailing from Dubai to Rome have the option to either cancel their booking and receive a full refund or move to an alternative sailing and receive a re-accommodation onboard credit as well as compensation to cover air change fees. Guests with reservations affected by the transition will be proactively contacted by Celebrity Cruises.

 

Guests and Travel Agents with specific questions are welcome to call 1-888-283-7275. Celebrity Century joined the Celebrity Cruises fleet in December 1995, and was built by Meyer Werft in Papenburg, Germany. The 71,545-ton ship carries 1,814 guests (double occupancy) and 860 crew.

 

Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL) is a global cruise vacation company that owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisières de France, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined total of 41 ships with an additional 8 under construction contracts. They operate diverse itineraries around the world that call on approximately 490 destinations on all seven continents.

[Northern Aurora]

We were booked on one of the Millennium 2015 cruises which was cancelled (due to being chartered), in addition to the preceding TP which had a significant itinerary change. At least for those of us booked on those Millennium cruises no one had been able to book air yet. Given that this is an April 2015 sailing passengers on that cruise must have booked air and hotels. Hope that no one booked non-refundable air, and also hope Celebrity handles their situation with compassion.

[Orator]

I really loved Century and it holds many special memories. The news I'm waiting for is when Celebrity announces a new ship to love and create new special memories.

Edited September 3, 2014 by Orator

[cruisestitch]

I'm rather stunned that the decision was not made to take the ship to Rome as scheduled and then bring her back empty to the Far East, or even add another "farewell special" cruise eastward again. Leaving all those passengers with (presumably) non refundable air arrangements home from Rome is astonishing.

[eroller]

Ernie one has to wonder about the future of CDF and Pullmantur. Carnival has decided to do away with the Iberocruceros brand for now and use the Costa brand that has newer ships to focus on that market. RCCL is trying to compete with second hand tonnage. Those ships are also very expensive to operate so maybe the decision has been made to start divesting themselves of the older ships.

 

 

Could be, although I would not compare CDF or Pullmantur to Iberocruceros. Royal Caribbean has done a pretty good job of diversifying Pullmantur into not just a Spanish brand, but a Latin America brand as well. I think this is key to the brands future success. This is where Iberocruceros truly failed, and frankly they were poorly managed with some crappy ships. Sending one or more of these clapped out vessels to Costa seems like a desperate move simply because Carnival has no where else to send them, and it's doubtful there are many interested buyers. These original Carnival vessels do not even remotely fit the Costa brand and I'm guessing Costa had no choice but to take one (maybe two). My understanding is that CDF is actually doing pretty well, but apparently not well enough to claim CENTURY??

 

Unlike lots of other 2nd hand tonnage, I look at CENTURY as truly a world class vessel that can and has stood the test of time. I can't speak for her mechanics, but her passengers areas are wonderful and she was my first and still favorite ship in the Celebrity fleet. Something about her is very unique and special, and she was well liked from the onset.

 

I shutter to think what the Chinese will do to her. She will have a large casino that is for sure, and plenty of tacky and garish spaces to go along with it. :-(