Hamburg - TUI Group and its longstanding partner Royal Caribbean Cruises are planning to expand their luxury, expedition and premium cruise segment and to attract new target audiences for luxury cruise products. The expansion of the Hapag-Lloyd Cruises brand will be at the core of this strategy. The former TUI Group subsidiary will be integrated into the TUI Cruises joint venture, a successful structure having been established by TUI and Royal Caribbean since 2008.
A contract signed in Hamburg today values Hapag-Lloyd Cruises at 1.2 billion euros. The closing of the transaction is expected for this summer. Under the joint venture profit-sharing agreement TUI will report 50 percent of Hapag-Lloyd Cruises’ earnings. With the transaction, TUI and Royal Caribbean Cruises Ltd. have agreed to further expand their partnership by using the proven joint venture structure of TUI Cruises also for the luxury and expedition cruise segment. The transaction is in line with TUI’s previously stated objective to deliver additional profitable growth at a lower level of capital intensity.
TUI Group’s plans for the expansion of the Cruises segment will be expedited by the transaction. As a result of limited global shipbuilding capacity, TUI Cruises’ Mein Schiff fleet are not scheduled for the next three new build deliveries until 2023, 2024 and 2026.
The integration of Hapag-Lloyd Cruises in the joint venture will allow TUI to participate in global cruise industry growth at a low level of capital expenditure.