Regent Line Sold, Market Shake-Out?

[TLCOhio]

Some news items have been moving on the wires to indicate that Regent Seven Seas will have a new owner that is connected with those controlling Wynham Hotels, Oceania Cruises, part of NCL, etc. You can see some of the news highlights below. For the mega rich Carlson family and its huge hospitality empire, their Minneapolis newspaper gives some highlights below on an ugly mother-son family battle with alcohol tossed in the wild mix. It all sounds like a TV soap opera, super family feud!!!

 

What does this mean for cruise lines? Our first cruise was last summer on Seabourn in the Greek Isles and Turkish Coast. Loved it!!! We are doing Crystal next summer for the Baltics. Have had friends do Regent Seven Seas and they loved it. We would look forward to trying them in the future. BUT, as a non-insider in the travel business, I read these shifts and changes to mean more "consolidation" and maybe a deeper pocket challenge/competition to the Carnival empire, etc. It could make it more interesting for higher-end lines such as Crystal, Seabourn, etc. in the competition and selling. Building quarter to one billion dollar boats takes deep pockets and financial depth that is hard to do if you are needing to play stock leverage games, from what I have read over time.

 

Any other reactions and insights from more experienced business and travel minds?

 

Thanks! Terry in Ohio

 

 

FROM CRUISE CRITIC NEWSWIRE TODAY:

Has Regent Seven Seas Cruises Been Sold?

As the luxury cruise market becomes an increasingly attractive investment, rumors about which lines may be up for acquisition are becoming rampant in the cruise industry. The fact that Regent Seven Seas Cruises is ripe for just such an acquisition may be one of the worst-kept secrets. Now, the rumors seem closer to reality -- a report on cfo.com says that Apollo, a private equity firm based in Purchase, New York, won an auction to acquire Regent from Minneapolis-based Carlson Hospitality Worldwide, one of the travel industry's largest hospitality companies.

 

Apollo, which invests heavily in hotel organizations such as Wyndham International and Miraval (an upscale spa destination), made its first foray into the cruise arena when it acquired Oceania for $850 million in February of this year. Even more recently, it made a deal with Star Cruises to acquire half of NCL.

 

FROM NOV. 3, 2007 MINNEAPOLIS STAR TRIBUNE:

A lawsuit between Nelson and his mother and Carlson Companies contends that Nelson, 43, was wrongfully denied the job of CEO and a slice of the family's considerable fortune, which is held in trust. A countersuit by Marilyn Carlson Nelson and the company contends that Nelson was not capable of running the large, international business. Before he left the company, Nelson rose to president and chief operating officer. In 2006, a restructuring of the executive team by his mother left Nelson without a front-line job. He eventually left the company, and in May he sued. Meanwhile, Nelson has struggled with a previously acknowledged alcohol problem.

[Iamboatman]

For some reason you also posted this on the Seabourn board. I don't know if you did it elsewhere. That is not supposed to happen. In any event, there is already a thread on this subject.

 

Further, as stated on the Seabourn board, it is not a shake out. It is, plain and simple, the sale of the cruise line to another player that now has much more to do with the industry than Carlson did.

[Jancruz]

OP posted on Oceania Board also....Wait until Apollo and Oceania make the announcement and then all will be clear..

Jan

*****

[Frandick]

OP posted on Crystal Board also.