Royal Caribbean inks a new partnership deal to help pay for PortMiami expansion and other moves

by | Dec 19, 2022

  • Royal Caribbean finalized plans to help pay for more expansion and refinements, including upgrades to PortMiami’s already state-of-the-art Terminal A
  • A deal with iCON Infrastructure will free up $210 million in capital that the cruise operator plans to use for its aggressive expansion plans
  • Last month, Royal Caribbean announced a 50-year lease and plans to renovate Terminal G in Miami, as well as complete its world headquarters there

Following last month’s blockbuster announcement that Royal Caribbean and PortMiami had signed a 50-year lease agreement that included robust plans to expand Royal Caribbean’s Terminal G and lease the site for 50 years, Royal Caribbean today announced a strategic partnership with iCON Infrastructure to help support the cruise operator’s aggressive expansion plans that include further upgrades to Royal Caribbean’s state-of-the-art Terminal A, which opened in 2018.

“Our partnership with Icon is a unique opportunity to catapult us into the coming decades of port investments, build further financial strength, and provide exceptional cruising experiences, responsibly, to our guests at the best destinations in the world,” said Royal Caribbean Group CEO Jason Liberty. “Over the last few years, we have developed more destinations than any other cruise company and this new partnership will allow us to implement a capital-light investment framework to accelerate the development of strategic destinations around the world.”

The deal with iCON is aimed at helping develop and manage a number of Royal Caribbean’s cruise terminal facilities and infrastructure in North America and key ports of call, starting with the company’s Miami port of call. The partnership will be 90% owned by iCON Infrastructure Partners VI, L.P. (iCON VI) and 10% by Royal Caribbean Group. It will be managed by an independent team and will receive strategic support from Royal Caribbean. Future expansion plans will receive investment from both parties in accordance with their percentage of ownership interest.

“We are thrilled to be partnering with Royal Caribbean Group to develop, own and manage a portfolio of cruise terminals in key strategic markets,” said Iain Macleod, Managing Partner at iCON. “Through this partnership, we will provide world class cruise terminal infrastructure, offering cruise guests more opportunities to see and experience the world in partnership with the Royal Caribbean Group, a world class operator.”

The deal will net Royal Caribbean Group an estimated $210 million in proceeds, allowing them to improve facilities and enhance customer experiences in a way that doesn’t require heavier investment of their own capital up front.

The Terminal G expansion is expected to be completed in 2027. Part of those plans include an extension of Royal Caribbean’s lease of space for the cruise line’s global headquarters. That project was started before the pandemic but then temporarily halted when the entire cruise industry shut down in 2020.

Royal Caribbean Group is one of the leading cruise companies in the world with a global fleet of 64 ships traveling to approximately 1,000 destinations around the world. Royal Caribbean Group is the owner and operator of three award-winning cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, and it is also a 50% owner of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. Together, the brands have an additional 10 ships on order as of September 30, 2022


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