Miami-based leading cruise company,
Royal Caribbean Cruises Ltd.
), is set to add a new ship to its Quantum cruise line. In this
regard, the company has inked a construction agreement with the
German shipbuilding company, Meyer Werft GmbH.
Quantum is an upcoming new series of passenger cruise ships
which is slated to debut in 2014 with its first ship, Quantum of
the Seas, followed by the launch of another vessel, Anthem of the
Sea in 2015. Meyer Werft will also be responsible for the
construction of these two ships. The new vessel, which is
scheduled to be delivered in mid-2016, will be the third Quantum
Royal Caribbean did not disclose the exact price of the new
ship, but it has hinted that the price will be nearly same as the
other two Quantum class cruise ships. The company's contract with
Meyer Werft is subject to the fulfillment of certain financial
terms and conditions.
Post launch, Quantum will be one of the leading cruise lines
with the second biggest cruise ships in the world. All of these
ships will feature 16 decks and 2,090 staterooms with a capacity
to accommodate 4,180 passengers. These ships will introduce a new
era for the cruise vacation industry with various additional
facilities. Now, with the addition of this vessel under the
Quantum line, the company will be able to further enhance its
cruise services and attract more customers.
Royal Caribbean now expects its capital expenditures (all
contracts are included) to be $700 million, $1.2 billion, $1.2
billion and $2.1 billion for 2013, 2014, 2015 and 2016,
respectively. Following the launch of the third Quantum ship, the
company's capacity will grow 4% annually over the next five
Royal Caribbean's ship, Grandeur of the Seas, caught fire on
May 27, 2013, following a similar incident with another cruise
). Royal Caribbean assured a refund to the passengers booked for
the May 31 sailing along with the transportation expenses
incurred. Although there were no casualties in the disaster, it
might shatter passenger confidence in the industry, especially
that of first-time cruisers and result in subdued bookings. In
this circumstance, the decision of adding a new ship in its
Quantum cruise lines comes as a positive for the company.
Royal Caribbean currently retains a Zacks Rank #3 (Hold). Some
companies from the leisure and recreational services industry
that are worth a look include
The Madison Square Garden Company
Regal Entertainment Group
), both carrying a Zacks Rank #2 (Buy).
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