Assa Abloy

TUI, Royal Caribbean Enlarge JV to Include Hapag-Lloyd

Hanseatic Inspiration

With the acquisition of Hapag-Lloyd Cruises by TUI Cruises, TUI Group and its partner Royal Caribbean Cruises are planning to grow their luxury, expedition and premium cruise segments and to attract new target audiences for luxury cruise products, the companies announced today as TUI Cruises acquired Hapag-Lloyd.

The expansion of the Hapag-Lloyd Cruises brand will be at the core of this strategy, according to a statement

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. 

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, according to a press release.

With the transaction, TUI and Royal Caribbean Cruises 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 ships’ identities, service, quality and customer experience will remain as individual and unique as they are today. This will create significant advantages for the Group, for our expansion and for our investments,” explained TUI CEO Fritz Joussen.

Hapag-Lloyd Cruises is part of the TUI Group’s cruise businesses and is the leading provider of luxury and expedition cruises in German-speaking markets. Its fleet currently consists of two luxury ships within the five star plus category and three expedition cruise ships. A further expedition cruise ship has been ordered and will be added to Hapag-Lloyd Cruises’ fleet in 2021 to replace Bremen. In light of the transaction it is possible that the luxury and expedition fleet will grow in the coming years, the companies announced.

“Products and brands such as MS Europa and MS Europa 2 have international potential and appeal. Going forward, this will enable us as shareholders to take a capital-light approach to financing the ships and international growth within a joint venture framework. TUI and Royal Caribbean Cruises have developed the joint venture company on the basis of a strong partnership over the past ten years. The expansion decision is the next big step of growth for us – from a strategic and a commercial perspective,” said Fritz Joussen. Each partner will continue to leverage its core strengths: TUI’s strong brand and selling power combined with Royal Caribbean’s shipbuilding, operational and digital expertise.

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