Financial Times: Since its inception, the company has accumulated losses of almost $700 million and does not expect to become profitable until 2027. For several years, the company has been grappling with occupancy rates 

It’s an exciting time for the luxury cruise industry, given how the sector is evolving. It’s particularly interesting to see luxury hotel groups entering the cruising market, even if it’s largely just a licensing deal. In 2022, the Ritz-Carlton Yacht Collection was launched. This year, Four Seasons Yachts and Orient Express Sailing Yachts are also launching, and next year, Aman at Sea will follow.

 An updated look at Ritz-Carlton Yacht Collection’s serious struggles

As the established “hotel” player, it’s interesting to take an updated look at Ritz-Carlton Yacht Collection’s serious struggles with profitability, as covered in a new Financial Times story (thanks to Stephen for bringing this to our attention). The cruise line is set to remain afloat following a decision by its lenders to ease terms. However, it remains to be seen when this endeavour will become profitable, especially given the increased competition. 

Restructured its debt 

 Conversely, The Ritz-Carlton Yacht Collection cruise line has successfully restructured its debt to avoid breaching its financial agreements and to support the development of the ultra-luxury cruise market. However, this requires an additional financial commitment from shareholders

The highest fares in the cruise industry 

It is noteworthy that some of the highest fares in the cruise industry are charged by Ritz-Carlton Yacht Collection, with some voyages costing more than $50,000 per week. Despite being one of the most recognisable names in luxury hospitality, with significant investment backing, the company has incurred losses totalling nearly $700 million and has had to rely on lenders easing debt terms to stay afloat. Despite launching three luxury yachts, spending over $100 million on marketing in 2025 alone and attracting over $1 billion in shareholder support, profitability remains elusive.

Company establishment

The company was founded in 2017 by a group of investors led by Oaktree Capital, which holds a 55% stake. Licensed to use the Ritz-Carlton brand through Marriott, the company aimed to bring the luxury hotel experience of the brand to the sea. However, the project encountered several challenges. The first ship, the Evrima, was not delivered until 2022, over three years later than expected, due to problems at the Spanish shipyard Hijos de J. Barreras, which was responsible for its construction. 

Related: Delivered the third ultra-luxury cruise ship to Ritz Carlton

The company has struggled with lower-than-expected 

The Financial Times has reported that, according to company documents, the company has accumulated losses of almost $700 million since its inception and does not expect to be profitable until 2027. Despite operating in a growing luxury market, the company has struggled with lower-than-expected occupancy rates for several years and has had to invest over $100 million in marketing to stimulate demand.

Related: The induction of Ritzenthaler to the CLIA Hall of Fame for 2026.

Extend loan maturities

The project is to be supported by creditor banks, who have agreed to extend loan maturities. Crédit Agricole, the main lender, has deferred repayments totalling $171 million relating to Ilma and Luminara, and CaixaBank has granted a waiver avoiding the immediate repayment of almost $300 million relating to Evrima. In exchange, shareholders have pledged an additional $275 million in capital, bringing the total infusions since the initiative's inception to over $1 billion. However, the company has warned that further breaches of financial covenants could occur as early as 2026, which would likely require further waivers by banks.

The cruise market

Notwithstanding the challenges, investors continue to have faith in the potential of the ultra-luxury segment. However, competition is increasing rapidly, with prestigious new operators such as Four Seasons, Orient Express and all intent on conquering the most exclusive part of the cruise market.
 #the cruise market #Four Seasons #Crédit Agricole#Hijos de J. Barreras#The Financial Times #Ritz-Carlton Yacht Collection # Orient Express Sailing #financial turmoil #Marriott