The Spirit of Yachting

Private Yachting Endures Despite Turbulent Market Conditions

By Georgia R. Byrd

One industry remains on course amid perilous financial seas and changing market conditions. The world of private yachting is cruising full speed ahead in relatively calm waters, thanks to the emergence of a growing number of wealthy individuals who demand the ultimate in luxurious vessels for their sailing pleasure.

Forbes’ 2008 “World’s Billionaires” list reports that the world’s 20 richest people, once primarily Americans, are now more internationally diverse. There are more billionaires than ever, according to the report, which for the first time in its history includes more than 1,000 individuals. This group claims an astounding total net worth of $4.4 trillion, which is a $900 billion increase over last year. In short, the wealthy are getting wealthier.

So as the numbers of the rich — and sometimes famous — grow, a trend is emerging among this elite clientele. In the world of custom-yacht ownership, not only are vessels still in high demand, but they’re also getting larger and more sophisticated than ever.

The Numbers Tell the Story
Camper & Nicholsons International (CNI), a company diverse in its knowledge of yachting, compiled a revealing report to support these claims. Its 2007 Superyachting Index says that not only has the volume of yacht orders increased, but the average size of vessels has “undergone a dramatic evolution.” CNI reports that an average of 50% of superyachts are above 100 feet (31 meters) in length overall (LOA), and there were 3,800 superyachts above 80 feet (24 meters) at the end of 2007.

The fleet nearly doubled between 2000 and 2007. And 20% of these new yachts were actually built after 2005, representing close to 800 units. This year’s projections are also bold — a sure sign of the constant increase in production, according to the CNI report.

Burgess, a world superyacht leader with offices across Europe and North America, reports the same explosion in interest in private yacht ownership and charter.

Tim Wiltshire, the company’s brokerage director, agrees: “It’s clear that what was a large yacht ten years ago no longer looks so big. Twenty years ago, the Burgess market was under 200 feet. Now our ceiling is hitting 200 meters, never mind feet.”

Wiltshire adds, “As for size, new owners are demanding more and more facilities on board: Saunas, spas, party rooms, gyms, helipads — and with all of that, you need more crew, and so it grows.”

“As for size, new owners are demanding more and more facilities on board:
Saunas, spas, party rooms, gyms, helipads — and with
all of that, you need more crew, and so it grows.”

Tim Wiltshire, Burgess Brokerage Director

At the same time, Wiltshire succinctly points out, global wealth patterns are changing relatively quickly, and the current economic climate and exchange rates pose undeniable challenges, predominantly in size categories below about 130 feet. However, the market is fundamentally robust, and the demand for the very largest yachts (especially brand-new yachts) is as consistent as ever and shows no signs of abating.

That’s good news for builders like New Orleans-based Trinity Yachts, the world’s largest luxury custom superyacht builder in the world, according to the 2007-2008 Global Build Report published by Yachts International.

Trinity Yachts: An Order Book That Defies the Economy

To say that today’s economy has spared the yachting industry demands proof beyond what has already been mentioned. Perhaps there is no proof stronger than the eye itself.

Flashing on the home page of U.S. builder Trinity Yachts and in various national classified ads is a plea for employees. From marine engineers to welders, an order book of 24 superyachts begs for skilled laborers to help meet the demand for orders placed by clients everywhere from the Middle East to Russia and, yes, even the U.S. Trinity is dealing with a surge of new clientele, many of whom are drawn to its southern facilities by the workmanship and the weak U.S. dollar.

Trinity has 24 custom yacht contracts in hand, a total of 4,132 linear feet. Its enormous sheds house gigantic hulls in various stages of construction. Design teams are working around the clock, and potential clients call every day. With a price tag that may exceed $100 million for a single yacht, that’s quite remarkable considering the U.S. economy. But Trinity is not the only one reaping the rewards of the demand for superyachts. Several owners are selling their yachts while under construction at a premium to buyers who don’t want to wait the 24 to 36 months for a completed build.

John Dane III, president and CEO of Trinity Yachts, says, “We have one owner — this is his third new-construction Trinity — and he’s never yet taken delivery of any of them. Most wealthy clients don’t want to wait on a yacht, and so they’ll pay a premium. This owner has taken that premium and simply started the custom-build process again with a new design.”

Trinity has 24 custom yacht contracts in hand, a total of 4,132 linear feet.
Its enormous sheds house gigantic hulls in various stages of construction.
Design teams are working around the clock, and potential clients call every day.

New Vitality and Ultramodern Facilities

Recovering from the devastation of Hurricane Katrina three years ago, Trinity has rebounded heartily with a new shipyard and headquarters in Gulfport, Miss.; the installation of a new 3,700-ton Syncro lift-launching system; and the capability to build superyachts up to 330 feet (100 meters). With nearly 1,000 employees between its two yards, the company has seized the largest share of the U.S. yacht-building market with a vengeance. Its original site in New Orleans, La., which was once used to build the Higgins vessels in World War II, and its new facility in Mississippi work in tandem, producing yachts that grace the most prestigious ports of the world, from Monaco to St. Barts and Dubai.

Trinity production capacity has doubled in size since Hurricane Katrina, and both shipyards have witnessed great events, including the milestone of the first “post-Katrina” launching and the christening of the second-largest sport-fishing yacht in the world, Mary P, in New Orleans. The new yard in Gulfport saw last year’s debut of the motor yachts Imagine, Lohengrin, Lady Michelle and Mine Games. Both sites have been active, and the memorable launchings and christenings signal the company’s fast-paced recovery and progression.

“As for size, new owners are demanding more and more facilities on board: Saunas, spas,
party rooms, gyms, helipads — and with all of that, you need more crew, and so it grows.”

Tim Wiltshire, Burgess Brokerage Director

In January 2008, the Gulfport yard saw the launching of a 161-foot (49-meter) yacht, Destination Fox Harb’r Too, a gleaming aluminum tri-deck with a spacious beam of 28 feet (9 meters). With its European spa-like interior, this contemporary superyacht features a showcase of stone accented by a variety of rich woods including redwood burl, lacewood, Macassa ebony and Honduran mahogany. Accommodating 12 guests in six staterooms and a crew of 12 in six cabins, she will soon grace the world’s ports with her delighted owner aboard.

With three highly regarded yachtsmen and progressive professionals at the helm — John Dane III, president; William S. Smith III, vice president; and Felix Sabates Jr., chairman of the board — Trinity has earned its place as one of the world’s elite builders of custom superyachts with an emphasis on European quality and construction in both steel and aluminum. To inquire about Trinity Yachts, contact Smith at 228-276-1054, or visit the Web site at www.trinityyachts.com.

Burgess: Accommodating the Owner’s Desires

The average size of a superyacht has grown dramatically in recent years as clients have redirected their desires toward new and larger yachts. Today there are more big yachts under construction than ever before, according to Burgess.

In a world in which demand for large yachts continues to vastly outstrip supply, building your own can be an exciting and rewarding alternative. The Burgess new-construction team can handle a range of sizes, from 203 feet (62 meters) to 492 feet (150 meters), and is managing more than 20 new builds currently under construction. The staff is composed of more than 15 Burgess naval architects, marine engineers and technical managers who oversee each project, including shipyard and designer selection, drafting of specifications, contract negotiations, advice on technical issues, MCA, SOLAS, classification, technical supervision and warranty period control. The Burgess team is directing some of the world’s most impressive new builds.

Next-generation Slipstream, for example, is entering the final stages of construction at CMN shipyards in France under the watchful eye of Burgess’ new-construction division. This 196-foot (60-meter) superyacht has a tough act to follow, as it is the successor and namesake of one of the world’s most successful charter yachts. Sporting the same distinctive livery of black hull and silver superstructure — this time applied to a new, racier profile — the new Slipstream is certain to be a star of the charter circuit in time for the Mediterranean summer season of 2009, with rates starting in the region of $465,000 per week, excluding operating expenses.

New Builds Demonstrate Burgess’ Prowess
Another new yacht to recently join the Burgess charter fleet is the Benetti-built, 164-foot (50-meter) Alibella, which exceeds the demands for cruising in elegant luxury. A ravishing contemporary interior with rich but subtle Far Eastern touches creates a mood of easy sophistication. Light and airy throughout, it can accommodate 12 guests in quarters that include a large master suite, a VIP cabin and four guest cabins (two doubles and two twins with Pullmans), all with beautiful en suite marble bathrooms. An inviting sundeck complements spacious indoor reception areas with every amenity for summer living, including a helicopter landing pad.

Alibella will be gracing the ports of the Mediterranean for summer 2009 with rates starting at $259,000 per week, excluding operating expenses.

If you charter a private yacht, the world’s most coveted destinations are within reach,
from Australia’s Great Barrier Reef to the Italian Riviera to the tropical Bahamas.

Founded in 1975 with offices across Europe and North America, Burgess is, indeed, a global superyacht industry leader, uniquely specializing in yachts over 130 feet (40 meters). Renowned for its professional yachting services, the company leverages its expertise to guide clients through every aspect of the yachting experience, including sale and purchase, new construction, and charter and operational management. Burgess has been involved in the sale of many of the world’s most significant yachts, while its new-construction division is currently supervising more new-build superyachts than any other firm.

In addition, Burgess’ first-class charter service offers a portfolio of the finest yachts in the most stunning destinations. The company’s highly qualified operational yacht managers have extensive seagoing experience and can take care of every aspect of managing a large yacht. The superyacht credentials of Burgess ensure that clients enjoy the highest levels of customer service. More information on Burgess can be found at www.burgessyachts.com.

Discover the Joys of Chartering
Ready to seek adventure, solitude, privacy and luxury, all while enjoying the world’s most picturesque sites? The charter yacht experience will satisfy your nautical desires and calm your spirit.

If you charter a private yacht, the world’s most coveted destinations are within reach, from Australia’s Great Barrier Reef to the Italian Riviera to the tropical Bahamas. You are the captain of your holiday while a crisply dressed crew, personal chef and professional captain attend to your desires.

Trinity-built Mine Games, complete with her helipad, will be the world’s first yacht for charter that has a $1.6 million submarine for exploring the ocean’s hidden jewels. Today, there are over 100 superyachts in the charter market, each bearing a unique character that meets a client’s specific requirements. Mine Games is available for charter through International Yacht Collection (IYC) at +1 (954) 522-2323, or online at www.iyc.com.

Trinity’s and IYC’s Chairman, Felix Sabates Jr., notes that for the prospective yacht owner, chartering your yacht is one way to help offset the costs of maintaining it.

According to Sabates, a 164-foot yacht can easily bring $250,000 to $350,000 of gross revenue per week. By chartering the vessel 10 to 12 weeks a year, the owner can almost offset the annual operating expenses for the vessel.

“The charter market has allowed people to buy boats a little larger than they would have wanted to invest in had they not seen it as a source of revenue to help defray their operating costs,” Sabates says.

All three charter companies, Camper and Nicholsons, Burgess Yachts and International Yacht Collection, offer a glossy, tabletop charter directory for your browsing pleasure. To request a directory, visit www.cnyachts.com, www.burgessyachts.com or www.iyc.com.

Camper & Nicholsons: Your Gateway to World Cruising

With a history encompassing more than five generations, a worldwide network of offices and highly rated experiences from its repeat clients, CNI is another undisputed authority when it comes to meeting the needs of anyone interested in buying, selling, building, owning or chartering a superyacht.

It has often been said that CNI, established in 1782, is the history of yachting itself, situated at the forefront of the superyacht industry. It offers international yacht build, design, charter, brokerage and management, and continues to consistently expand its boundaries in every area of the superyacht industry.

CNI now offers its clients the benefit of a century and a half of experience, with the added advantage of its constantly evolving expertise and today’s state-of-the-art equipment.

With five divisions that work hand in hand to provide professional service in all aspects of yacht brokerage, management, build, charter holidays, charter fleet management and crew placement, the company excels at pleasing the prospective yacht owner or charter client.

Along with 12 international offices where CNI’s core industry resources are located, the company also has contacts covering the Middle East, South America, Russia and the Far East, and through relationships with its parent company, the Rodriguez Group, its resources are even broader.

The CNI Experience Starts Here
CNI will open the doors to your dream holiday at this year’s Ft. Lauderdale International Boat Show with a preview of one of its best-equipped luxury yachts for charter and sale, Kanaloa. This 159-foot (48-meter) yacht offers a spacious 29-foot (9-meter) beam and enough toys to satisfy the most adventuresome charter client in the Caribbean during the winter months and the West Mediterranean in the summer.
She is a François Zuretti-designed, CRN-built vessel, recently refit, that can accommodate 10 to 12 guests in three double cabins, two twin cabins (with Pullman berths) and one single cabin, along with a crew of 11.

On board and at your disposal are two ocean kayaks, windsurfing gear, water skis, a 12-foot Aquafin sailing dinghy, two Yamaha GP1300R WaveRunners®, and snorkeling and fishing equipment. Her expansive sundeck, with Jacuzzi and large sunbathing pads, is the ideal place to absorb the view, while ample shade and a bar beckon under a nearby canopy. Kanaloa may be purchased for the asking price of $19,750,000. She charters for $220,000 per week.

Another magnificent yacht from the CNI charter fleet is the 169-foot (51- meter) Lazy Z. Far from what her name may suggest, Lazy Z can move, parting the waves at up to 16 knots. She possesses clean lines and good looks as well as more than enough space for up to 12 guests. From the sundeck sofas, sun mattresses and spa pool to the semi-shaded bridge deck, her decks are variously dedicated to relaxing and socializing. She also boasts a gym, excellent water sports equipment and a generous swim platform. Lazy Z devotes herself to relaxation and comfort, and invites you to do the same. With a 32-foot (10-meter) beam, she is spacious enough to allow for privacy in a group setting. Lazy Z is available for charter through CNI for $238,000 per week, excluding food, fuel and operating costs.

And for those looking for something new, Anjelis, a 361-foot (110-meter) Trinity-built yacht — currently under construction — is one of the latest yachts for charter through CNI. Expected to launch in late 2008, she has a contemporary Art Deco look with an interior that features a variety of exotic woods, custom marble and stone inlays. Anjelis is filled with the latest in electronic video and audio equipment, and boasts spacious outdoor areas for relaxing. She cruises the Caribbean in the winter and the Mediterranean in the summer at a rate of $225,000 per week.

For more information on these or any other luxurious yachts for sale or charter, visit CNI at www.cnyachts.com.

Don’t Delay — Begin Your Adventure Now
Whether you opt to sample a yacht by chartering it first or take the plunge into ownership, the tools for exploration are at your fingertips. Inquiries are welcome at each of the companies’ Web sites, or by contacting any of their offices worldwide.

Photos by Ed Holt, Courtesy of Camper & Nicholsons International; Trinity Yachts; Burgess; CNI