The cruise line Royal Caribbean International has announced the sale of its Azamara brand to private equity firm Sycamore Partners. The deal consists of $201 million in cash compensation in exchange for Azamara’s three ship fleet.
While the $201 million cash infusion is good news for the cruise line which has had the vast majority of its fleet docked for nearly a year, Royal will also recognize a $170 million impairment on the sale.
Unfortunately, in the company’s current state, the cash won’t go very far. The cruise line has reported cash burn between $250 and $290 million a month, so the Azamara proceeds provide only a small cushion.
In the company’s statement on the sale, it signaled that RCI’s constrained resources need to be focused on preserving Silversea, Celebrity, and Royal Caribbean Cruise Lines, rather than supporting smaller brands.