Smart Buyer's Guide to Residential Cruise Ships

Residential ships are a way to share expensesMillion, or can be completed turn-key in 20 months for
instead of owning your own private yacht. TheUS$130,000,000. Lying in the Eastern Mediterranean.
concept seems reasonable, but there is some priceThe above listed "turn-key" price of $130 million is
gouging going on in the business.based on finishing the ship at the Elefsina Shipyard in
The ship that started the current spate of luxuryGreece. That would not be a wise thing to do with
residential homes aboard cruise ships was "Thethis ship. Greek shipyards get very few new
World," operated and managed by ResidenSea. Allconstruction projects these days, and for good
the residences onboard "The World" are alreadyreason. The trade unionists in Greece are doing a
sold-out, but occasionally an owner puts one up forvery good job of improving pay, benefits, and
sale. If you have to ask the price, you probablyworking conditions of shipyard workers in Greece.
cannot afford it.Unfortunately they also slow down the work, and
Residential Cruise Line, LTD. Is offering 1 bedroom, 1drive up the costs.
bath, 624 sq.ft. apartments on "The Magellan" for aThe asking price for this ship is less than the price for
mere $2,160,000. A 4 bedroom, 4.5 bath, 4334 sq.ft.one large apartment on "The Magellan." The asking
unit will set you back $15,460,000 to buy and anprice and selling price are two different prices. This
annual maintenance fee of $542,000.ship could probably be bought for about 11 million
Not to be outdone, The Four Seasons Oceandollars. It would be foolish to finish this ship in a
Residences has units running from $3.75 million to $39Greek union shipyard. It can be economically towed
million, and sizes range from 797 square feet for aover to the nearby shipyards in Tuzla, Turkey. The
1-bedroom unit to 7,860 square feet for aship can be finished there quicker, and for about half
4-bedroom unit.the price and with better craftsmanship. This ship
The "Orphalese" plans to launch in 2008. They arecould be bought and finished to a high standard equal
offering 200 permanent residences ranging from theto "The Orphalese" for a total cost of much less than
1,000-square-feet, 2-bedroom Pegasus Estate to the100 million dollars (maybe even as low as 60 million). It
3,700-square-feet, 5-bedroom Penthouse, which arecan be finished to order, with each residential unit
available for full ownership. The 2-bedrooms start atcustomized to suit its owner(s). The finished product
$1.8 million with $30,000 in annual fees, whilewould be a brand new completely modern ship with
penthouses start at $10 million with $78,000 in annualluxury homes onboard which would be at least as
fees.good or better than any on the market.
Voyage Partners has a ship under construction butThat still seems like a big chunk of change. But this is
has not announced pricing yet. When they do, thea big ship and it would easily accommodate 200
prices will probably fall in the range of the others inluxury residential units and an additional 200 or so
this short list of new residential cruise ships.conventional cruise cabins like "The Orphalese." The
Another ship of this caliber is in the planning stages, itaverage cost of the residential units would be less
is to be named "Everest" and will be 656' in length ifthan $500,000. That would mean that the smaller
or when it is built. It is to intended have 17residential units would cost much less than the
apartments and an owners private penthouse suiteaverage price. Also, with an additional two hundred
on the top deck.(plus) conventional cruise cabins, the cabin owners
"The Orphalese" is the best bargain of the bunch, andcould recoup much of the operating costs, and thus
I think it is the highest quality ship too. "Thevirtually eliminate the "maintenance fees" for
Orphalese" is being built at the Aker Shipyards inthemselves. The expense to owners can be less than
Finland by the same builders who have recently built10% of the going rates if the buyers did not need to
the biggest and best mega cruise ships in the world,pay some slick promoters and salesmen, but just
including the largest of all cruise ships "The Freedombought the ship directly themselves sharing the actual
of the Seas" operated by Royal Caribbean. Also thecosts by dividing the ship ownership among the
management of "The Orphalese" seems to bebuyers. Why would anyone want to pay ten times as
practical. There will also be 265 guest suites availablemuch money to buy, and much higher maintenance
on the ship for cruise passengers who do not ownfees for a similar shipboard residential unit? The only
residences.reason I can think of is to impress others with how
Using the best of the bunch "The Orphalese" as amuch money they can afford to throw away.
benchmark, let's see how it stacks up against realUsed cruise ships are an even bigger bargain. Look at
world prices.the specs for the following unfinished conversion ship
New cruise ships can be built for around $200 million.for sale:
The most expensive new mega cruise ships costUNFINISHED YACHT FOR SALE
about $500 million to build.OWNERS PRICE USD1 MILLION
All the current prices of residences onboard cruiseCOMPLETE SPECIFICATIONS, GA AND EQUIPMENT
ships are exorbitant. Rich people apparently enjoyLIST AVAILABLE
squandering their money. It must be a status thing toGREEK FLAG
waste more money than the Joneses. For those whoBUILT ROMANIA / 1988
prefer to not waste money trying to outspend theLAST IN DRY DOCK 1997
Joneses, there is a better way.DIMENSIONS 116.40 X 14.20 X 5.20 METERS DRAFT
Occasionally a cruise line may have a new ship underGRT/NRT 3430/2000
construction and run into financial difficulties. They23 KNOTS INTENDED
may be forced to abandon the construction project,HELIPORT INTENDED
and an unfinished ship may sit idle in a shipyard. ThereACCOMMODATIONS INTENDED FOR 81 GUESTS
are such ships available now. One in particular is asCREW FACILITIES INTENDED FOR 93 MEMBERS
follows:Again the asking price is subject to negotiation. Used
725' 725ft./221m UNFINISHED 12 DECK PASSENGERships can be refurbished to look practically new, and
VESSELcan be brought up to international safety standards
Year: 1990(SOLAS). There are shipyards around the world that
Current Price: US$ 15,000,000can do good quality work at even lower cost than
Located in Mediterraneanthe shipyards in Tuzla, Turkey. If a ship is currently
Hull Material: Steellying in Greece (as many are), then Tuzla is the best
Engine/Fuel Type: Twin Dieselplace to tow it for major shipyard work. The "SE"
725ft./221m Unfinished 12 deck Passenger Vesselshipyards in the Black Sea port of Nikolaev, Ukraine
Steel hull & superstructure built in Poland in 1990,offers the best value for the money in that part of
length extended by 50m/164ft. in 1995 in Greece forthe world. The bottom line is that smart shoppers
the original owner who went bankrupt.. New ownercan get good deals, even on lavish purchases such as
not interested in completing the 13,000 ton (lightship)a luxury residential home aboard a cruise ship. I
cruise vessel and it is now at the stage where in canmaintain a list of those who have expressed an
be completed by our competent ship builders ininterest. The list is confidential and will not be shared
record time as per Buyer's specific requirements. Idealfor any marketing purposes. The purpose of
also as a floating condominium project or ro-pax. Themaintaining the list is to facilitate joint ownership
price "as is, where is" with engines, generators anddirectly between buyers without any middlemen or
other equipment on-board (see list below) is US$15promoters involved.