Royal Caribbean to Buy 23% of Global Dream Cruises Stake for $250 Million

Royal Caribbean has agreed to buy a 23.4% stake in Genting Hong Kong’s Dream Cruises for $250 million, marking the entry of the world’s largest cruise operator into the lucrative Chinese cruise market.The deal, announced Monday, will see Royal Caribbean acquire 66.67% of Dream Cruises’ parent company, Genting Cruise Lines, from Genting Hong Kong for $163 million. Royal Caribbean also agreed to buy the remaining 33.33% of Genting Cruise Lines from Genting Malaysia for $87 million.Royal Caribbean Chairman and CEO Richard Fain said the investment in Dream Cruises would allow Royal Caribbean to expand its presence in China, the world’s second-largest cruise market after the United States.Founded in 2015, Dream Cruises is the only cruise line in the world that focuses exclusively on the Chinese market. The company currently operates three ships, with two more on order for delivery in 2022 and 2023.Dream Cruises’ ships are designed to appeal to the Chinese market, with features such as Chinese-language entertainment and dining options. The company also offers a loyalty program that rewards passengers for spending on board its ships.Royal Caribbean’s investment in Dream Cruises is a sign of the growing importance of the Chinese cruise market. The number of Chinese cruise passengers has been growing rapidly in recent years, and is expected to continue to grow in the coming years.In 2019, more than 10 million Chinese passengers took a cruise, according to the China Cruise and Yacht Industry Association. That number is expected to grow to 16 million by 2025.Royal Caribbean’s investment in Dream Cruises is a major step for the company, which has been looking to expand its presence in China for several years. In 2017, Royal Caribbean launched its first ship in China, the Quantum of the Seas. The company has since added two more ships to its Chinese fleet, the Spectrum of the Seas and the Voyager of the Seas.Royal Caribbean’s investment in Dream Cruises will give the company a strong foothold in the Chinese cruise market. The deal will also allow Royal Caribbean to benefit from Dream Cruises’ expertise in the Chinese market.Dream Cruises is expected to continue to operate as a separate brand from Royal Caribbean. The company will continue to be headquartered in Hong Kong.Royal Caribbean’s investment in Dream Cruises is a major vote of confidence in the Chinese cruise market. The deal is also a significant step for Royal Caribbean, which is looking to expand its global reach..

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