Royal Caribbean Cruises Ltd is selling its Azamara brand to private equity firm Sycamore Partners, the latest example of a cruise company shedding assets during the COVID-19 pandemic.
The US$201-million cash deal includes Azamara’s entire three-ship fleet and intellectual property, Royal Caribbean said in a statement Tuesday.
Royal Caribbean Chief Executive Officer Richard Fain said the company will focus its growth on its Royal Caribbean International, Celebrity Cruises, and Silversea brands.
For the better part of a year, the coronavirus has mostly shuttered the cruise industry, prompting companies to reassess their fleets and raise billions of dollars in debt to stay solvent. Carnival Corp, the world’s biggest cruise company, is speeding up the removal of 19 ships.
Royal Caribbean shares were up 1.7 per cent to US$74.14 at 9:37 am in New York. The stock tumbled 44 per cent last year.