What happened
The Ritz-Carlton Yacht Collection (RCYC) is facing potential bankruptcy after losing $700 million since 2017. Creditors including Crédit Agricole and Spain’s CaixaBank have lent over $1.5 billion to finance three luxury yachts and service existing debt. Last week, Crédit Agricole agreed to defer $171 million in repayments linked to two yachts, Ilma and Luminara. In exchange, controlling shareholders committed to injecting $275 million in equity, bringing total capital injections past $1 billion since 2017. For Marriott Bonvoy members and luxury cruisers, the key risk is that Marriott may do little to protect guests if the brand collapses, similar to its handling of Sonder Apartments, advising guests to rely on credit card chargebacks rather than direct brand support
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- One Mile at a Time: Ritz-Carlton Yacht Collection Struggling Financially: Will Things Improve? It’s a fascinating time for the luxury cruising industry, given how the space is evolving