Royal Caribbean makes a $1 billion bet on luxury cruises

The deal by Royal Caribbean Cruises to take a majority stake in Silversea Cruises allows the company to enter the luxury along with expedition space, Royal Caribbean’s chairman along with CEO, Richard Fain, told CNBC.

“in which’s definitely a growth opportunity. in which’s a part of the market in which we haven’t definitely been addressing,” Fain said Thursday on “Power Lunch.”

“We had This particular one gap within the ultra-luxury along with expedition area,” he said. “We definitely needed to fill in in which space.”

On Thursday, Royal Caribbean announced in which was purchasing a controlling stake — nearly 67 percent — in Silversea Cruises, a private company, for $1 billion. Silversea sails to all seven continents, including locales such as the Galapagos Islands, Antarctica along with Russia’s Far East. The cost of a cruise on Silversea can be well over $10,000.

The deal helps heighten the more affordable Royal Caribbean’s presence within the ultra-luxury space along with makes in which easier for in which to compete with rivals like Carnival Cruise Lines along with Norwegian Cruise Line.

Fain said short term the acquisition won’t have a big impact on business.

“however longer term — along with we’re a long-term business — This particular is usually where we ought to be,” he said.

Royal Caribbean’s stock was up more than 5 percent late afternoon Thursday.

The deal is usually supposed to close later This particular year.

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