Jump to content

Equity Partner for Genting interested in Crystal - so who will it be?


Stickman1990
 Share

Recommended Posts

Supposedly Genting are in discussions about an equity partner interested in taking an undisclosed stake in Crystal - so who will it be and why? 
 

Reporting results for the first half of 2020, Genting Hong Kong stated it is in the process of seeking additional equity or debt funding from private investors and has received letters from investors, expressing an interest to invest in one of the company’s cruise brands (believed to be Crystal Cruises)”

 

News article @ https://www.cruiseindustrynews.com/cruise-news/23442-genting-seeking-equity-partner-for-brand.html 


I’m thinking about it and can’t see it being the parent of any of the other luxury lines eg Regent, Silverseas, Seabourn as they already have an offering for that market and I don’t believe they climates right for buying another line simply to close it down. Maybe one of the smaller lines aspiring to get a foothold on this market - Ponant, Scenic maybe?
 

Try to stay on topic - there’s already enough threads about refunds, the impending demise of Genting/Crystal and COVID - so if you want to talk about that then pick one of them amd go for your life 

Link to comment
Share on other sites

9 minutes ago, Stickman1990 said:

Supposedly Genting are in discussions about an equity partner interested in taking an undisclosed stake in Crystal - so who will it be and why? 
 

Reporting results for the first half of 2020, Genting Hong Kong stated it is in the process of seeking additional equity or debt funding from private investors and has received letters from investors, expressing an interest to invest in one of the company’s cruise brands (believed to be Crystal Cruises)”

 

News article @ https://www.cruiseindustrynews.com/cruise-news/23442-genting-seeking-equity-partner-for-brand.html 


I’m thinking about it and can’t see it being the parent of any of the other luxury lines eg Regent, Silverseas, Seabourn as they already have an offering for that market and I don’t believe they climates right for buying another line simply to close it down. Maybe one of the smaller lines aspiring to get a foothold on this market - Ponant, Scenic maybe?
 

Try to stay on topic - there’s already enough threads about refunds, the impending demise of Genting/Crystal and COVID - so if you want to talk about that then pick one of them amd go for your life 

 

Actually, I think Scenic would be an intriguing possibility. Endeavor would fit nicely with Eclipse, and the river line is very close in quality to Crystal River. Not quite sure how the Ocean ships would fit in though, unless Scenic was looking to break into that market as well. I have to say that from a TA perspective I would be happy with a Scenic/Crystal hook up as the Scenic Res staff are a pleasure to deal with!!

Link to comment
Share on other sites

Have to concur that it will be some kind of private equity firm.  Note how it says "equity partner" - not an operational one.  Lots of firms have experience in investing in troubled companies, and companies flush with cash are looking to make deals.

  • Like 3
Link to comment
Share on other sites

I have heard only negative things having out on the River cruise board about Scenic. Apparently they are difficult to work with if you are in North America. I know someone who took a Scenic cruise and they were not impressed. Honestly - I thought they were having money issues by the River board comments. They have been even worse in offering refunds than Crystal has. They have refused and called their season "suspended" and not "cancelled" which did not qualify those who sailed this year for refunds. Just credit.

Edited by Coral
  • Like 1
Link to comment
Share on other sites

I concur with the comments above about private equity — that was how I read it as well.  

 

Total opinion and speculation of course, but I don’t see a cruise line in the industry that doesn’t have the same need GHK does, and I don’t see a venture capital firm driving a merger by tying up two cash-strapped lines or conglomerates as doing anything but further distressing both groups at this point.

 

 Vince

  • Like 1
Link to comment
Share on other sites

The part about the financier being interested only in one of the brands--believed to be Crystal--indicates that it's likely someone in the Western world, since that's Crystal's traditional market. I can't see it being another cruise company--they are all seeking cash, not investing it. As others have said, it's likely a private equity firm. Financial writers have been speculating that, if the cruise industry survives, it will be in for a re-alignment. And the money people thinking that through are going to want a ready customer base so that they don't have to re-invent the market, but instead have a stake on a company that can build on the market that survives this period. 

 

Which is all by way of saying that it's likely an entity or people that those of us outside the financial field would not know. It could well be the same as those who propped up NCLH, or it could be others.

 

  • Like 1
Link to comment
Share on other sites

17 minutes ago, wishIweretravelling said:

Which is all by way of saying that it's likely an entity or people that those of us outside the financial field would not know. It could well be the same as those who propped up NCLH, or it could be others.

 

Doubt the latter.  Private equity firms tend to pick one entrant in a field and don't generally like to compete against themselves.

Link to comment
Share on other sites

It’s difficult to predict pathways to recovery in the cruise industry, particularly in the luxury niche where Crystal’s brand name has unique reputational value.  Everyone here seems to hope Crystal’s traditional organizational culture and norms will remain intact. 

 

Although sales remain strong, the retail industry is in turmoil.  Brooks Brothers (a venerable high-end haberdasher), had to close many stores and recently filed for bankruptcy.   They have been acquired by joint venture partners consisting of a large mall proprietor and a brand licensing firm.  Early indications are that the reorganized brand will be located in malls with a line of smart casualwear.  

 

I digressed from the cruise industry merely to illustrate the kind of transformation one sometimes finds when new investors become involved.    Outsiders may alter the pathway forward with limited regard for a brand’s former distinctiveness and focus.  Organizational culture and customer loyalty can be dissipated.  Let’s pray that doesn’t happen to Crystal!

 

 

 

Edited by Jim9310
Link to comment
Share on other sites

25 minutes ago, FlyerTalker said:

 

Doubt the latter.  Private equity firms tend to pick one entrant in a field and don't generally like to compete against themselves.

Obviously I don't know much about the industry. But I seem to recall Apollo Management (admittedly, not fully a private equity firm but definitely having operations in that space) having holdings in both Regent Seven Seas and either Crystal or Genting at some point. But perhaps not concurrently.

 

Link to comment
Share on other sites

Actually it could be anybody, not necessarily from the cruise industry. Now, if I would think of a company from the cruise industry, I would prefer MSC becomes the equity partner instead of Royal or Carnival. 
The reasons are many, but just to mention something: MSC does not have yet a luxury product. They have the yacht club, which is good, but which I would not say that is really comparable to Crystal or Silversea. The main thing for who ever becomes the equity partner is to keep the Crystal product as it is, and maybe enhance it. But not to radically change it. For example if MSC takes the chance, they could run it together with Genting the same way that Crystal is now, and we might get better Italian food, Italian Gelato and once in a while opera performances with excellent Italian singers. I do not think that Royal or Carnival would let Crystal survive because they already have their luxury products. MSC as a company with financial possibilities and owned by a proud Italian family, might contribute to the survival of the Crystal product as we know it, and it could contribute to its expansion with newer ships for this luxury segment. Just my opinion.

Ivi

Edited by travelberlin
  • Like 1
Link to comment
Share on other sites

1 hour ago, FlyerTalker said:

 

Doubt the latter.  Private equity firms tend to pick one entrant in a field and don't generally like to compete against themselves.

 

Agreed...  In the unlikely event that DID happen, it would be an early indicator that the private equity firm was trying to tie the lines together.

 

1 hour ago, gt1man said:

Disney fits well

 

40 minutes ago, Jim9310 said:

You're joking, I hope!!!

 

At least two of Crystal's initial senior execs went on to launch and form Disney's cruise operation, not to mention all the execs they've traded back and forth since.  😉  Both brands might as well be managed by the same ownership group.  (Not saying that's a possibility, just that it's not as crazy as it sounds.)

 

Vince

Edited by BWIVince
  • Like 2
Link to comment
Share on other sites

1 hour ago, gt1man said:

Disney fits well

 

28 minutes ago, Jim9310 said:

You're joking, I hope!!!

 

On my first cruise on the Serenity - I was with people who had traveled all the cruise lines. One of the people I was with immediately recognized the CD from his Disney cruise. And Tom Wobler came from Disney.

 

Disney does run things well. Obviously it would need to be run differently but I don't think it would be bad.

  • Like 1
Link to comment
Share on other sites

5 minutes ago, BWIVince said:

 

At least two of Crystal's initial senior execs went on to launch and form Disney's cruise operation, not to mention all the execs they've traded back and forth since.  😉  Both brands might as well be manage by the same ownership group.  (Not saying that's a possibility, just that it's not as crazy as it sounds.)

 

And they do have money!

  • Like 1
Link to comment
Share on other sites

1 hour ago, travelberlin said:

Actually it could be anybody, not necessarily from the cruise industry. Now, if I would think of a company from the cruise industry, I would prefer MSC becomes the equity partner instead of Royal or Carnival. 

MSC as a company with financial possibilities and owned by a proud Italian family, might contribute to the survival of the Crystal product as we know it, and it could contribute to its expansion with newer ships for this luxury segment. Just my opinion.

Ivi

 

Good points regarding MSC!!   You mentioned a yacht club.  Do they already operate river cruises?

 

Since all of the cruise companies are struggling to survive, I do wonder whether any of them (including Disney) has the financial and managerial wherewithal to participate constructively in this bailout.  They all have a lot of interwoven problems to resolve, so would they really want to add more? 

 

While I don’t know much about MSC, their private family ownership and their entrepreneurial, proactive efforts to resume cruising are noteworthy.  I like your reasons for thinking they would be a suitable match for Crystal and would retain its small ship, luxury business model.

Edited by Jim9310
  • Like 1
Link to comment
Share on other sites

8 minutes ago, Jim9310 said:

 

Good points regarding MSC!!   You mentioned a yacht club.  Do they already operate river cruises?

 

Since all of the cruise companies are struggling to survive, I do wonder whether any of them (including Disney) has the financial and managerial wherewithal to participate constructively in this bailout.  They all have a lot of interwoven problems to resolve, so would they really want to add more? 

 

While I don’t know much about MSC, their private family ownership and their entrepreneurial, proactive efforts to resume cruising are noteworthy.  I like your reasons for thinking they would be a suitable match for Crystal and would retain its small ship, luxury business model.

 

MSC's Yacht Club is actually a "suite enclave" on each of their ships. Essentially a ship within a ship, but once you leave the enclave you are still sailing with 4,000 of "your new best friends"!!

  • Like 1
Link to comment
Share on other sites

24 minutes ago, Jim9310 said:

 

Good points regarding MSC!!   You mentioned a yacht club.  Do they already operate river cruises?

 

Since all of the cruise companies are struggling to survive, I do wonder whether any of them (including Disney) has the financial and managerial wherewithal to participate constructively in this bailout.  They all have a lot of interwoven problems to resolve, so would they really want to add more? 

 

While I don’t know much about MSC, their private family ownership and their entrepreneurial, proactive efforts to resume cruising are noteworthy.  I like your reasons for thinking they would be a suitable match for Crystal and would retain its small ship, luxury business model.

The Yacht Club is an area on their newer ships with better cabins, separate restaurant with higher quality food and drinks, butlers and separate sun decks and pool. MSC does not have smaller ships for river cruises. 
 

https://www.msccruises.com/en-gl/Discover-MSC/MSC-Yacht-Club.aspx

  • Like 1
Link to comment
Share on other sites

2 minutes ago, travelberlin said:

The Yacht Club is an area on their newer ships with better cabins, separate restaurant with higher quality food and drinks, butlers and separate sun decks and pool. MSC does not have smaller ships for river cruises. 
 

https://www.msccruises.com/en-gl/Discover-MSC/MSC-Yacht-Club.aspx

 

 

Thanks.  There seem to be some worthwhile benefits for MSC.

  • Like 1
Link to comment
Share on other sites

10 minutes ago, Jim9310 said:

 

 

Thanks.  There seem to be some worthwhile benefits for MSC.

You are welcome. Here is a link about the history of MSC. Now, like I have said above, I do not think that anyone who becomes equity partner shall try to change the Crystal product. I just hope that first a good partner is found and that this partner has the vision and ambition to keep a luxury brand like Crystal even though it might not be as profitable as other investments.

 

https://www.msccruises.com/en-gl/About-MSC.aspx

  • Like 2
Link to comment
Share on other sites

2 hours ago, Coral said:

And they do have money!

 

Not what you think they might.  The closure of their theme parks and the hits to other divisions has resulted in several billion dollars of losses.  Not just decreased revenue, but losses into the red.

 

Also, note again the "equity partner" aspect.  That would seem to preclude someone who would be on the operational side -- looking for money men.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

  • Forum Jump
    • Categories
      • Thank You for 25 Years - Click for Fun Stuff!
      • Forum Assistance
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Digital Photography & Cruise Technology
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • Canadian Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations
×
×
  • Create New...