Virgin Voyages has closed on a $550 million capital raise to accelerate its growth plans. The round
was led by funds managed by the Private Equity Group of Ares Management, a global
alternative investment manager, and also includes additional capital from
existing investors including Virgin Group and Bain Capital. The new funding will
let Virgin Voyages strengthen its financial position while supporting the brand’s
rapid expansion into international markets.
The company further announced that founding CEO
Tom McAlpin is retiring as CEO and transitioning to the role of chairman of the
board of directors. Nirmal Saverimuttu, who currently serves as president and chief
experience officer, has been appointed the new CEO.
“It is hard to express just how proud I am of
all that the Virgin Voyages crew has created and the strong endorsement we are
receiving from Ares. We have won numerous industry awards and received many
five-star reviews because of our passion for this brand,” McAlpin said. “While
I will miss the day-to-day, I believe it is the right time to step aside as
CEO. Nirmal is a great friend and experienced leader who lives and breathes the
Virgin Voyages culture. I know he will help take this amazing brand and crew to
new heights, and I look forward to continuing to support the leadership team as
chairman.”
Virgin Voyages officially launched in August
2021 and currently operates three ships sailing in the Caribbean, the
Mediterranean, and, by the end of the year, Australia and New Zealand.
“With this new investment alongside our
partners at Virgin Group and Bain Capital, we believe the company is on strong
footing to capitalize on its differentiated product and value proposition in
the growing cruise industry,” said Aaron Rosen, partner and co-portfolio manager
of special opportunities in the Ares Private Equity Group.
Saverimuttu was a founding leader of Virgin
Voyages and joined the business as chief commercial officer in 2014 from the
Virgin Group after successfully closing the first investment round. In early
2021, he took on the expanded role of president and chief experience officer.
Virgin Voyages also revealed future itineraries,
which include 19 new ports and 27 new itineraries through April 2025. Spanning the
globe, the new offerings feature a return to the U.K. following strong demand, and
new destinations in Australia and Caribbean.
“Our loyal sailors have been asking for more
places to visit with us, so we’re delivering in a big way. New ports, new
itineraries and more local and immersive experiences to create unforgettable
getaways,” said Michelle Bentubo, senior vice president-service excellence and travel
operations. “From Morocco to Mooloolaba, Amsterdam to Bordeaux, Catania to Port
Douglas, we now offer more than 120 incredible places you can explore aboard
our award-winning ships you know and love. After all, it’s not just about where
you go; it’s about who you go with and make a holiday one to remember.”
After returning from her inaugural season in
Australia, Virgin Voyages’ newest ship, Resilient Lady, will sail three
itineraries from Athens from May through July 2024. The popular “Greek Island
Glow” visits Santorini and Mykonos; “Adriatic Sea and Greek Gems” sails along
Croatia’s Dalmatian Coast before stopping in Kotor and Corfu; and “Starry
Nights in Greece & Croatia” offers a mix of the other two seven-night
itineraries.
Resilient Lady also returns to its British
brand roots with three- to six-night sailings starting in mid-August 2024. Highlights
include “English Sights and European Delights,” which visits Le Verdon
(Bordeaux), La Coruna, Bilbao, Amsterdam and Bruges.
Resilient Lady will depart on a 44-night
repositioning from Athens to Australia in October 2024, making stops in destinations
like Dubai, Mumbai, Singapore and Bali along the way. Once Down Under, the ship
will operate 15 new itineraries and visit nine new ports including Broome,
Albany, Adelaide, Newcastle, Mooloolaba, Port Douglas, Brisbane, Eden and
Kangaroo Island.
To start her 2023 winter season, Valiant Lady
will begin signature itineraries from Miami, such as the “Eastern Caribbean
Antilles” and “Western Caribbean Charm.” From January through March 2024, it
will operate out of San Juan, Puerto Rico, offering two southern Caribbean
voyages originally scheduled for Brilliant Lady including “The Southeastern
Caribbean Isles” and “Sunsets in the Lesser Antilles.”
With Scarlet Lady heading into dry dock next
year, sister ship Valiant Lady will trade places starting in April 2024.
Departing from Miami, Valiant Lady will continue to offer Scarlet’s four- and
five-night Caribbean rotations, along with a special six-night “Holidaze and
Nights” voyage.
Between May and October 2024, Scarlet will take
on Valiant Lady’s two seven-night itineraries: “Irresistible Med” and “French
Daze and Ibiza Nights.” On Nov. 3, Scarlet will embark on an 11-night
repositioning voyage from Barcelona to Civitavecchia, stopping in Mallorca,
Corsica and Sardinia. After a short period in dry dock for general maintenance,
enhancements, and recalibrations, Scarlet Lady will return to service with a
16-night transatlantic voyage from Rome to Miami, with calls in Funchal
(Madeira, Portugal) as well as Santa Cruz de Tenerife (Spain).
After arriving in Miami on Dec. 14, 2024,
Scarlet Lady will offer Valiant’s signature six- and eight-night winter voyages
through the spring of 2025 including “Western Caribbean Charm” and the “Eastern
Caribbean Antilles.” Originally debuting in the fall of 2022, these longer itineraries
from Miami feature late-night stays in San Juan, authentic experiences in
Roatan, and a day trip to St. Croix.
While introducing three mid-sized vessels in
less than two years, Virgin is susceptible to global issues. Despite careful
planning, Virgin Voyages is facing unexpected construction, supply chain and
staffing challenges that have delayed the introduction into service of its new
ship, Brilliant Lady. The brand has made the tough decision to postpone
Brilliant Lady’s launch. Virgin Voyages is evaluating new possible launch dates
when it is able to deliver the standards the brand’s guests have come to
expect.
Guests with bookings that have been canceled
will receive generous offers along with exclusive rebooking perks and onboard
credit once the new date is announced.
“We’ve built a brand that has taken the
industry by storm, but even the strongest businesses face unforeseen challenges
every now and then,” Bentubo said. “We are sorry that our Sailors and First
Mates who were excited about Brilliant Lady will have to wait a little bit
longer for her launch. We know they will love the new itineraries as much as we
do, and we look forward to welcoming them onboard.”
Virgin Voyages will offer anyone impacted by
the new itineraries price- and promotion-protected options to rebook and
receive $300 to $600 in onboard credit or a full refund.
The company also is offering 30 percent off 2024
Mediterranean voyages and up to a $600 bar tab when booked by Sept. 28. A
handful of select Caribbean sailings and repositioning voyages are also
eligible for $500 off.
Starting Sept. 11, 2023, the new itineraries
will be available to view and book by clicking here.
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