Royal Caribbean adds new ship
Call It a Royal Comeback
After the pandemic-related shutdown, Royal Caribbean has slowly built back its business. The company became operating-cash-flow positive in the second quarter and has seen demand bounce back to 2019 levels.
While the last 2 1/2 years were certainly challenging, we have proven that our business and company are resilient. Our business is now fully back up and running, and our operating platform is larger and stronger than it has ever been,
Buying Endeavor was an opportunistic move to quickly expand a cash-generating part of the business.
Normally, building a ship involves tying up capital — generally borrowed capital — to pay for an asset that won't add revenue until it can begin booking sailings.
In this case, RCL got an asset that immediately begin sailing for a price lower than it would have cost to build.
Cruises are sailing at full capacity. RCL stock is a solid good investment.
Submitted August 05, 2022 at 05:56PM by _bono983
via reddit https://ift.tt/83cak9M