Second Genting Cruise Ship Going Up for Auction

Posted on: December 5, 2022, 07:16h. 

Last updated on: December 5, 2022, 12:15h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

The sale of cruise ships Genting Hong Kong hoping to sail under its Dream Cruises division continues. A second vessel, the World Dream, will be up for auction later this month. That’s following the demise of the company in the wake of the COVID-19 pandemic.

World Dream cruise ship
Genting Hong Kong’s World Dream cruise ship sits in port. The ship is going to go to auction this month to pay off company debt. (Image: ShipMag)

The cruise liner, which weighs around 150,695 tons, will be auctioned off on December 21. Bidding is open to anyone, making this a once-in-a-lifetime opportunity for those who want to make an investment.

The 18-deck ship, currently anchored off Singapore, can operate with a 2,000-person crew and up to 5,000 passengers. It’s up to the buyer to supply the captain and crew, as well as the guests.

Anchors Aweigh

The five-year-old vessel, which cost almost $1 billion to build, is just sitting in port waiting for a new home. The Office of the Sheriff of Singapore is in charge of the auction, and is selling the vessel “as-is.” The buyer is responsible for making sure it’s seaworthy and for relocating it elsewhere.

The vessel auction is being run by the sheriff to help pay off the company’s debts. All bidders must make a deposit of $50K, but the losers of the auction will receive refunds.

There will be extra costs associated with the purchase that potential buyers must be willing to accept. Genting Hong Kong wasn’t able to buy fuel for its ships after running up enormous bills, leaving a number of customers stranded. In order to seize World Dream, it was refueled at a cost of $1.2 million. That amount will be added to the sales price.

Genting Hong Kong was in the middle of a major expansion of its cruise ship business when COVID-19 hit. This led to trip cancellations for extended periods of time, as well as at least one voyage returning early following an outbreak of the virus.

That resulted in the company losing out on the revenue it expected to use to fund the development of at least five vessels, two of which were under construction at the time. With nowhere to turn, and parent company Genting Group reducing its interest, Genting Hong Kong threw in the towel.

Shortly after Genting Hong Kong fell apart, it reappeared under a different, independent entity. Genting Group chairman Lim Kok Thay, who was the chairman, CEO, and executive director of Genting Hong Kong, created Resorts World Cruises. The company claimed it had nothing to do with Genting Hong Kong.

Disney Buys Into the Dream

It isn’t clear if Resorts World Cruises will try to buy World Dream. It already missed one opportunity to buy a former Dream Cruises vessel last month.

Disney Cruise Line purchased Global Dream, one of the unfinished vessels Dream Cruises was working on when it went belly up. Per its original specifications, it was to be one of the largest cruise ships in the world, able to hold 9,000 passengers.

That’s going to change, though. Disney has big plans for the ship, and is going to scrap some of the original ideas in favor of its world-renowned expertise. When the ship sets sail in 2025, it will support up to 6,000 passengers and a 2,300-member crew.

Although Disney didn’t say how much it paid for the vessel, it apparently got a really good deal. German media outlet Capital said the company picked it up for around $41 million, which would be just 2% of its expected complete build-out cost. The ship was about 75% ready when it changed hands.