Royal Caribbean Group teams up with iCON Infrastructure for destination development

Royal Caribbean Group announced that it has entered into a new alliance with iCON Infrastructure Partners with the goal of developing strategic port infrastructure for cruise ships that supports Royal Caribbean Group's strong growth plans

Access to destinations continues to be of strategic importance to Royal Caribbean Group's core business. The proposed alliance will own, develop and manage cruise terminal facilities and infrastructure at both origin ports and key destination ports. The partnership, which will be 90% owned by iCON VI and 10% by Royal Caribbean Group, will be managed by an independent management team with strategic support from Royal Caribbean Group. Both parties committed to providing funding for future expansions based on their ownership percentages. 

"Our alliance with iCON is a unique opportunity to catapult us into the next decades of port investments, build further financial strength and offer our guests exceptional cruise experiences, responsibly, in the best destinations in the world," said Jason Liberty, president and CEO of Royal Caribbean Group. "Over the past few years, we have developed more destinations than any other cruise company and this new alliance will allow us to implement a light capital investment framework to accelerate the development of strategic destinations around the world. We chose iCON given our shared strategic priorities —delivering the best experiences in the world responsibly— and our shared commitment to sustainability,

iCON is a leading independent investment group focused on investing in high-quality infrastructure assets located primarily in North America and Europe, with extensive experience investing in ports and related infrastructure.

Initially, the new partnership will include PortMiami Terminal A and various development projects in Italy, Spain and the US Virgin Islands. The partnership will also pursue additional port infrastructure developments based on the strong portfolio of projects as part of Royal Caribbean Group's destination development strategy. At closing (expected in the first quarter of 2023), Royal Caribbean Group expects to receive net cash proceeds of approximately $210 million. The partnership is expected to increase earnings, ROIC and leverage metrics, and allow Royal Caribbean Group to continue to invest in strategic infrastructure development, while supporting the objectives of its Trifecta program.

"We are delighted to partner with Royal Caribbean Group to develop, own and operate a portfolio of cruise terminals in key strategic markets," said Iain Macleod, iCON Managing Partner. "Through this partnership, we will provide world-class cruise terminal infrastructure that will offer cruise guests more opportunities to see and experience the world in partnership with Royal Caribbean Group, a world-class operator. We look forward to, over the next few years, deliver high-quality new terminals and work closely with key destination communities and with a strong focus on sustainability." 


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