A short look at the yachting industry from the outside would only reveal its
superficial traits, opulent luxury, astronomic sales prices and an insane economic
structure with exorbitant purchase orders. However parts of this are true, some
realities are often overlooked in the economics of yachting.
At first glance, it seems that the industry should have high profit margins due to this bespoke system and absence of inventory. When looking at financial data from shipyards worldwide, the numbers seem however to tell a different story. Due to the high prices of each project, turnaround is generally overwhelming but profits remain scarce. In 2014 UK-based yacht builder, Princess Yachts posted a turn around of 239.6 million pounds along with a loss of 11 million pounds. In 2015, the yacht builder has however recuperated with 1.7 million pounds of profits on a 239.7 million pounds turnaround.
Princess is doing quite well in the sector as several yacht builders based in Italy have been forced to shut down or have been bought out by external groups of investors. Cantieri di Pisa, previously part of the Baglietto group, was acquired by Mondo Marine. Baglietto itself was only saved in 2012 by Beniamino Gavio after the group posted losses of 25 million euros in 2008 and 105 million euros in 2009. Such outcomes for shipyards are not only found in Italy. In 2014, it was announced that Dutch-based, Oceanco would purchase the Turkish shipyard, Proteksan Turquoise whose rise was cut short by the infamous sinking of the 60m Yogi in Greece in 2012.
Perhaps, with a new focus for the industry on laser-focus margin control and operational execution, a new pattern has emerged within yachting. Iconic US yacht builder, Palmer Johnson, has announced the closing of its Sturgeon Bay facility to relocate production to Northern Europe stating that the European market was stronger for its yachts. Arguably, shipyards that have done the most well in the last five years are based in the golden mine of the yachting sector, Northern Europe. Amels, daughter-company of the Damen Group, has sold 28 models of its Limited Edition series with 8 more under way and 1,000 people working at the yard. Lurssen has been responsible for the launch of behemoths of the yachting world such as Azzam, Topaz or most recently Dilbar. Feadship, a cooperative venture between Royal Van Lent, De Vries shipyards and engineering company De Voogt has launched its flagship, the 101m Symphony earlier this year.
Yacht construction is however not the only large sector of activity in the market. The service industry that has developed around yachting is substantial and mostly responsible for its marketing and attracting new clients. The global yacht charter market was valued at 35 billion dollars in 2014 and is expected to reach 51 billion dollars by 2020 according to Research and Markets. Knowing that typical agency commissions on a sale are about 10 to 15 per cent, revenue for charter and brokerage agencies looks impressive, much like the high turn around in shipyards. However, one of the top yacht charter/brokerage agencies, Camper & Nicholsons international has been sold to Colosseum investments for 1 million euros after the liquidation of its parent company Rodriguez Group. Before delisting from the stock exchange in 2012, Y.CO, another major player in yacht brokerage, has posted profits of 14,650 pounds for the year of 2011. On the other hand, Merle Wood, head of Merlewood & Associates, one of the most successful yet discrete US brokerage agencies reportedly owns a 150-foot yacht himself.
Yvan Grubsky
For starters, we must state that purchasing a yacht is not a rational decision.
Factors involved in the decision making process range from unquantifiable
personal taste to ego and status. With maintenance costs orbiting around 10% of
the initial purchase price, a yacht can hardly be seen as an investment in the post subprime
crisis era. Indeed, even though the charter market has seen substantial
growth in the last five years due to a large amount of owners selling their yachts to
get rid of annual costs and a recovery in global markets, chartering is often seen as
a way to recoup costs rather than a way to profit. It therefore looks like a yacht is a
recreational, lifestyle purchase which makes it highly dependent on the state of the
market. Hence, appearing as strong, powerful brands is essential to companies
trying to sell to those high net worth clients.
Guillaume Ettori
At first glance, it seems that the industry should have high profit margins due to this bespoke system and absence of inventory. When looking at financial data from shipyards worldwide, the numbers seem however to tell a different story. Due to the high prices of each project, turnaround is generally overwhelming but profits remain scarce. In 2014 UK-based yacht builder, Princess Yachts posted a turn around of 239.6 million pounds along with a loss of 11 million pounds. In 2015, the yacht builder has however recuperated with 1.7 million pounds of profits on a 239.7 million pounds turnaround.
Princess is doing quite well in the sector as several yacht builders based in Italy have been forced to shut down or have been bought out by external groups of investors. Cantieri di Pisa, previously part of the Baglietto group, was acquired by Mondo Marine. Baglietto itself was only saved in 2012 by Beniamino Gavio after the group posted losses of 25 million euros in 2008 and 105 million euros in 2009. Such outcomes for shipyards are not only found in Italy. In 2014, it was announced that Dutch-based, Oceanco would purchase the Turkish shipyard, Proteksan Turquoise whose rise was cut short by the infamous sinking of the 60m Yogi in Greece in 2012.
Perhaps, with a new focus for the industry on laser-focus margin control and operational execution, a new pattern has emerged within yachting. Iconic US yacht builder, Palmer Johnson, has announced the closing of its Sturgeon Bay facility to relocate production to Northern Europe stating that the European market was stronger for its yachts. Arguably, shipyards that have done the most well in the last five years are based in the golden mine of the yachting sector, Northern Europe. Amels, daughter-company of the Damen Group, has sold 28 models of its Limited Edition series with 8 more under way and 1,000 people working at the yard. Lurssen has been responsible for the launch of behemoths of the yachting world such as Azzam, Topaz or most recently Dilbar. Feadship, a cooperative venture between Royal Van Lent, De Vries shipyards and engineering company De Voogt has launched its flagship, the 101m Symphony earlier this year.
Yacht construction is however not the only large sector of activity in the market. The service industry that has developed around yachting is substantial and mostly responsible for its marketing and attracting new clients. The global yacht charter market was valued at 35 billion dollars in 2014 and is expected to reach 51 billion dollars by 2020 according to Research and Markets. Knowing that typical agency commissions on a sale are about 10 to 15 per cent, revenue for charter and brokerage agencies looks impressive, much like the high turn around in shipyards. However, one of the top yacht charter/brokerage agencies, Camper & Nicholsons international has been sold to Colosseum investments for 1 million euros after the liquidation of its parent company Rodriguez Group. Before delisting from the stock exchange in 2012, Y.CO, another major player in yacht brokerage, has posted profits of 14,650 pounds for the year of 2011. On the other hand, Merle Wood, head of Merlewood & Associates, one of the most successful yet discrete US brokerage agencies reportedly owns a 150-foot yacht himself.
Northrop & Johnson has announced the delivery of Majesty 120 Hull No. 4, a yacht sold by Yacht Broker Joe Foggia in December 2022. The vessel is scheduled to be loaded onto a freighter on December 13, embarking on a 30-day journey to its final destination in the Sunshine State.Crafted with exterior designs by Gulf Craft’s in-house team and interiors envisioned by Cristiano Gatto, the Majesty 120 stands as a sleek and modern tri-deck yacht. Its design embraces panoramic windows, seamlessly blending indoor and outdoor spaces and bathing the interiors in natural light.The interior of Majesty 120 reveals sophisticated yet comfortable styling, featuring Tabu Sycamore Frise and Amara wood to create a warm ambiance. Marble accents and ambient lighting complement the abundance of natural light. The main saloon offers various seating options over carpeted floors, enhancing guest comfort, while wooden floors with marble borders define the rest of the space. The upper saloon provides a delightful gathering spot, featuring an L-shaped sofa and a wet bar, with easy access to the alfresco area aft, boasting a sofa and two teak tables.Accommodating 12 guests and seven crew members, Majesty 120 includes six guest cabins and three crew cabins. The diverse range of accommodations includes the owner's cabin, two guest cabins with double beds, two twin guest cabins, and a VIP cabin, each equipped with an en-suite bathroom.The yacht’s sundeck is designed for entertainment, featuring a hot tub with a sunbed, three sun loungers with side tables, and a barbecue grill. A swim platform brings guests closer to the water, while the beach club offers a shaded alfresco space for relaxation. The delivery marks the beginning of a new chapter for Majesty 120 Hull No. 4 as it embarks on its maritime journey to the Sunshine State.Since the company’s inception in 1982, Gulf Craft has grown to become one of the top seven shipyards in the world: once a builder of small fishing boats in its modest premises, which was a genuine passion for Gulf Craft, they then established their credentials as a leader of innovation and technology in the yachting industry. With five brands in their product portfolio ranging from 31 to 175 feet, Gulf Craft manufactures yachts and boats that appeal to a wide audience, such as touring passenger vessels, Silvercraft family day boats, Oryx Sport Cruisers, Nomad Explorer Yachts, and the flagship Majesty Yachts.Credits: Northrop and Johnson
December 4, 2023
Feadship shared the video from the sea trials of the Project 1011. Project 1011 is not just a superyacht; it's a marvel challenging the limits of design and engineering. Crafted for a visionary owner deeply engaged in the 103-meter project, this masterpiece, designed collaboratively by Sinot Yacht Architecture & Design and Azure Yacht Design, pushes boundaries in innovation. With a distinctive vertical bow, Project 1011 showcases a clean-cut exterior, exuding a purposeful personality. The exterior is adorned with a staggering 1,100 square meters of glass, featuring twenty sliding doors, twelve glass windbreaks, four outdoor hot tubs, and a main deck swimming pool that spans its entire height. The forward helipad cleverly conceals a helicopter hangar, while eight hull doors, including the largest tender garage door ever installed on a Feadship, enhance its functionality.<iframe src=https://www.facebook.com/plugins/video.php?height=315&href=https%3A%2F%2Fwww.facebook.com%2FFeadship%2Fvideos%2F371252095276469%2F&show_text=false&width=560&t=0 width=560 height=315 style=border:none;overflow:hidden scrolling=no frameborder=0 allowfullscreen=true allow=autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share allowFullScreen=true></iframe>Despite challenging criteria, including the provision of amenities comparable to the owner's previous 6,000GT yacht within half the volume, Project 1011 excels in space planning and ingenious solutions. The single-deck engine room, a groundbreaking concept, maximizes guest areas. The engineering marvels extend to expansive glass suites, a colossal 15-meter tender garage door, fully retractable glass doors, a futuristic Kongsberg bridge, and a towering glass staircase and elevator in the main atrium. Based in the Netherlands and with roots dating back to 1849, Feadship was formed as a group in 1949 as a marketing partnership between six Dutch shipyards, de Vries Lentch, Van de Stadt, Witsen & Vis, Akerboom, De Vries Scheepsbouw and Van Lent Shipyard, and De Voogt Naval Architects. Feadship is well-known as one of the Netherlands’ most elite yacht builders and delivers superyachts from 50–100+ meters in length.Credits: Feadship
December 1, 2023
Exciting news echoes from CdM as the Darwin 86 Empire joins the fleet, marking the third launch in just two weeks, following the RJ 115 Pazienza and the Flexplorer 146 Maverick. It's not just a celebration; it's an exhilarating showcase of craftsmanship and innovation, leaving no room for comments, only sheer pride and excitement at the forefront.“The Darwin Class continues to provide us with great satisfaction, firmly establishing itself as a reference in the explorer yachts’ market. This Darwin 86 adds up to a total of twelve Darwins from 86 to 112 feet already delivered,” says Vasco Buonpensiere, CdM co-founder and CEO. Acquired by an enthusiastic American owner, the Darwin 86 Empire is a testament to bespoke luxury. From reinforced hulls with bulletproof steel plates to navigation plans that span distant and challenging seas, this vessel is tailored to the owner’s every whim.Designed with Hydro Tec's unmistakable Darwin aesthetics and CdM's unique approach to technical areas, the interior design, crafted by Massari Design, is a testament to opulence. The owner's requests, including an 'ice belt' at waterline level and enhanced scantlings for icy conditions, make this vessel a true explorer.Featuring a fourth pilot station in the engine room, the interior layout aligns seamlessly with the owner's vision. The warm and inviting ambiance is achieved by blending custom-made furniture with renowned manufacturers like Poltrona Frau and Poliform.The lower deck houses the owner’s full-beam stateroom and two twin cabins, while the VIP suite occupies the forward section. Crew quarters for four members are strategically located on the main deck forward. The main deck serves as the social hub, connecting lounging and dining areas with a cozy bar linked to the galley. The upper deck hosts a well-equipped gym, and the sundeck is furnished with loose furniture and sunbeds for outdoor enjoyment.Measuring 26.30m, the Empire is a little ship of robustness, comfort, and reliability. Powered by twin Scania engines and featuring 3 Northern Light generators and sodium-lithium chloride batteries, this vessel is a paragon of engineering excellence. The wheelhouse is designed for ease of handling, equipped with Boening integrated monitoring and control systems. A sophisticated anti-intrusion system adds an extra layer of protection.CdM's story begins in 2010. The facilities cover an overall surface of 16˙000 square meters, including 7˙000 sq. m of workshops and 1˙000 sq. m of docks. Since 2015, the shipyard has been the world’s leading builder of explorer yachts. Based in Ancona, Cantiere delle Marche builds yachts from 26m to 43m in length.Credits: CdM
December 1, 2023
Northrop & Johnson has announced the successful sale of the opulent 77.7m Golden Yachts O’Rea, orchestrated by Yacht Broker Steve Elario, representing the buyer.Motor yacht O’Rea, delivered by the Greek shipyard, Golden Yachts, in 2023, has found a new owner. With interior styling curated by Studio Vafiadis and Massari Design, O’Rea is not just a yacht; it's a masterpiece that sets new standards for luxury living on the water. The incredible design details, such as polished marble steps, backlit vertical paneling, and three-dimensional glass patterns, permeate throughout the yacht.Crafted for the discerning owner who values exquisite indoor and outdoor experiences, O’Rea showcases voluminous spaces across multiple decks, creating an idyllic setting for relaxation, entertainment, and indulgence. The seamless interconnection between each exterior area and the interior allows guests to transition effortlessly. The strategic use of glass blurs the boundaries between inside and outside, whether sunbathing on the beach club sea terraces, relaxing in the spa, or dining in the sprawling main deck area with floor-to-ceiling windows.With accommodation for up to 12 guests in eight stunning staterooms, O’Rea ensures a consistent level of comfort and sophistication for every guest. The owner’s suite stands out with its expansive height and volume, including a private office area. A dedicated crew of twenty-two ensures precision and care in every aspect of the journey.O’Rea is a symphony of indulgence and entertainment. Onboard amenities include a state-of-the-art gym, sauna, Turkish hammam, massage room, and a notable glass-bottom pool on the main deck aft, positioned above the beach club. Additional features comprise an outdoor theater, an exterior lounge/bar area, and ample sunpads across various decks.O’Rea has a steel hull and aluminum superstructure. Powered by twin Caterpillar engines, the yacht cruises comfortably at 16 knots, reaching a maximum speed of 18 knots.Recognized as a finalist at the Boat International Design & Innovation Awards 2024, O’Rea stands as a symbol of outstanding exterior motor yacht design in the 60m and above category.Golden Yachts was founded in 1996. The company began its activities by consulting and supervising the construction of the 42m luxury M/Y O’Pari new building at Intermarine SpA. Golden Yachts entered a new era in the 2000’s with a team of enthusiastic and committed naval architects and engineers. Now shipyard is famous for its 95m O'Pari, and 85m O'Ptasia. Credits: Northrop & Johnson
December 1, 2023
The latest addition to Custom Line's Navetta 30 displacement line, the eighteenth hull, was launched on November 7 at the Ferretti Group Superyacht Yard in Ancona. The ceremony, attended by Custom Line employees instrumental in the yacht's creation, marked the debut of this superyacht, tailored for an owner in the Asia-Pacific region.Crafted through a collaborative design process, the Strategic Product Department, responsible for exterior styling, worked in tandem with the Ferretti Group Engineering Department. Internally, ACPV ARCHITECTS Antonio Citterio Patricia Viel led the interior architecture, supported by Filippo Salvetti for exteriors and strategic interior design consulting from the Custom Line Atelier.Measuring 28.43 meters in length and boasting a 7.3-meter beam, this superyacht achieves ambitious volumes while radiating a sense of lightness and cruising elegance. The exterior design showcases horizontal lines sweeping towards the bow, imparting a sleek and dynamic silhouette with a touch of timeless classicism. The four-deck configuration maximizes onboard spaces, strategically arranged for conviviality, relaxation, and contemplation. Expansive glazed surfaces, over-two-meter high decks, and generous stern and bow areas provide panoramic views, creating an immediate sense of openness.Seamless integration between interior and exterior spaces defines a linear continuum, optimizing functionality. The interior styling, blending classic elements with a contemporary twist, introduces carbon detailing, sophisticated lacquer finishes, and custom textured claddings. Reflecting the owner's preferences, the decor embodies a sporty chic style, enriched by materials like nubuck leather and a captivating interplay of contrasts using polished Orobico marble and Silk Georgette marble.Dynamic contrasts come to life in a well-balanced fusion of pale, delicate tones – white, beige, and cream – with evocative shades of burnt brown, dark gray, and sepia. The Ferretti Group, led by Chief Executive Officer Alberto Galassi, is now one of the world’s leaders in the construction and sale of luxury yachts and pleasure vessels, with a unique portfolio of brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN, Custom Line and Wally.Credits: Ferretti Group
November 30, 2023