Posted on Monday, 2nd November 2009 by admin
Royal Caribbean Cruises Ltd. (NYSE: RCL) reports Q3 earnings results Tuesday, hence I’ll await those results before re-evaluating the stock, but today we’ll take a moment to highlight a high-profile addition to its fleet: the Oasis of the Seas — the world’s largest oceanliner.
Five times larger than the SS Titanic — 225,282 gross tons and 1,181 feet in length versus Titanic’s 46,328 gross tons and 830 feet in length — the $1.5 billion Oasis will perhaps represent the world’s largest and elaborate floating city, in terms of creature comforts (U.S. Nimitz-class aircraft carriers can carry more people, but no, the U.S. Navy does not offer as lavish accommodations nor as much per-person space for military personnel).
The ship’s numbers are truly impressive. The Oasis will be able to carry 6,300 passengers, including 5,400 guests/travelers at double occupancy, Royal Caribbean said. It has 16 decks, 2,700 state rooms, seven themed ‘neighborhoods,’ 28 multi-level loft suites with balconies overlooking the sea or the promenade, and almost every entertainment, leisure, and family support function that exists on land, including nurseries for children. Royal Caribbean’s shares closed Monday up 41 cents to $20.64.
The Oasis’ home port will be Ft. Lauderdale, Florida, from which it will operate cruises to the Caribbean year-round. The Oasis is scheduled to arrive in Ft. Lauderdale on November 11. A sister ship, the Allure of the Seas, is under construction and has a November 2010 maiden launch date.
Stock Analysis: Assuming the ship functions properly, Royal Caribbean’s launch of the Oasis will likely be a success, from a public relations standpoint, given the increased number or people who’ll learn about the company’s offerings for the first time as a result of the ship’s publicity. Longer-term, of course, the Oasis’ success depends on its ability to maintain high-booking rates throughout the year — which is driven by customer satisfaction with its cruises, and the value offered to guests, given each cruise’s price.
- -
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
Similar Posts:
- US Q1 economic growth figures revised upwards
- IG Index: Deposit rates cut across 59 markets
- Sky to launch first 3D channel in October
- News Corp.’s ‘Avatar’ and ‘Alvin and the Chipmunks’ Had a Great Weekend
- Cisco Increases Q2 Profit, Stock Flat on the News
Tags: Royal, Royal Caribbeans
Posted in Financing FAQ | No Comments »