When the recession hit, yacht sales slowed down. It’s hard to believe it’s been five years now since the recession was declared over. While superyacht sales haven’t jumped back, they’re doing far better than many other luxury industries.
So what is a super yacht exactly? How is it different from a boat? We know it’s a large ship, but the definition of a superyacht changes with each periodical you read. In this particular series, we’re going to focus on yachts that are over 24 meters long.
The History of Superyachts
While most people consider superyachts to be a fairly recent innovation, the truth is they’ve been around for some time. While it’s tough to discern exactly when large ships were used for personal travel, we can chart the course of yachts as far back as the Mahroussa in 1865. Shockingly, still in service, this superyacht, now called the El Horria was built for Isma’il Pasha, the Khedive of Egypt at the time. Built by the Samuda Brothers, it remained in service with the Egyptian royal family until the early 1950s.
It has undergone some fairly large transformations, beginning with lengthening of forty feet in 1872 and another 16.5 feet in 1905 in Scotland where it was outfitted with steam turbines in lieu of its original paddle wheels. It wasn’t until after the abdication of King Farouk that the yacht was sent back to Egypt and ownership granted to the government where it was given the name El Horria. Today, the ship is in the hold of the Egyptian Navy and sees occasional use as a Presidential Yacht on average three times each year, for one day at a time.
While this is certainly one of the first superyachts created for pleasure, it was nowhere near the last. Today there are hundreds of superyachts on the water with orders being fulfilled all the time. Yachts have certainly come a long way, but they still remain the same lavish home away from home for society’s elite.
Available for sale, charter and lease, superyachts are used for personal and professional travel and vacations by celebrities, politicians, royalty and business moguls. Celebrities such as Simon Cowell and Leonardo DiCaprio are well known for chartering superyachts for their friends and family, and today many of these yachts are outfitted with the very latest in toys and amenities. I’ve interviewed many yacht owners who pride themselves on the toys in their fleet. From waterslides coming off the top deck to discos and theme rooms, many of these yachts are size of commercial cruise ships and rely on a crew as big as or bigger than the number of guests on board.
A Luxury Industry All Its Own
When I interviewed Hank Fried, last year, the hotel magnate made it clear why he owned three yachts with a fourth on the way. “”The reason I own a boat is because I want the boat available when I want the boat available”, he said. Fried who owns the 125ft luxury yacht ‘Impulsive’ agreed that owning a superyacht is pretty much the greatest access ticket anyone can have. Millionaires have Centurion Cards, charter jets and fly in helicopters; but billionaires own superyachts. Sure you can buy a superyacht in some markets for just a few million, but it’s the upkeep that will rake your bank account clean.
“Owning a boat is a business unto itself”, Freid told me “It sometimes keeps me busier than my actual business which is making me money”.
For men like Freid, owning a superyacht is an all-access pass to the world’s most elite circles. Most of us only dream of it, but for superyacht owners, is ownership worth all we think it’s cracked up to be?
The short answer is no. The fact is that the cost of ownership is high. When I say high, I mean really high. Annual costs for crew, fuel, food, drinks, docking, taxes, surcharges and other expenses can easily cost a quarter of the initial cost of purchase and in some cases, even exceed it. Most billionaires are billionaires for a reason; according to Forbes they’re addicted to working. The fact is that while these men and women can afford to take time off, they usually don’t, and therefore only use their superyachts for a short time every year. In fact, during recent interviews I was told that often, even new yachts can spend more time in maintenance yards than on the water. There’s no such thing as a $10 oil change. The more the yacht costs to buy, the more it costs to maintain and own. This is one reason that most superyacht owners encourage prospective owners to charter; not because they want to limit the social circle of actual owners, but because it’s drained the bank accounts of so many men before them. Unless you own a yacht, it’s really difficult to begin to comprehend the actual costs of ownership.
Whenever I talk to owners or brokers the answer is usually similar when I ask why buy over charter. Simply put, it’s a matter of time. For the average billionaire time is more valuable than anything and for the limited period they have to use the yacht, they want to make sure there’s no surprises. For them this means not having to worry that the yacht isn’t as nice as the pictures, as is sometimes the case with chartering. It also means having a crew that knows you. Whenever I’ve spoken with captains they always stress that the crew is as important as the ship. A good crew is indispensable and will know what the owner wants before the owner has to ask for it.
The third reason yacht owners buy over charter is because they have control over the ship. It’s there’s. If they damage it, they don’t have to worry about someone suing them. They can take it out whenever they want, provided of course it’s not in the yard, and they can modify or renovate it any way and any time they please.
The final, and sometimes most important reason is the ownership factor. The prestige of owning a yacht. The average executive can take you golfing, but only a few can woo clients on board their private superyacht. It ends up helping them do business and provides them with a global office that can maneuver the seas as they please. There is no bigger ticket in the world, save maybe owning a private Airbus 380, but overall, the yachts are bigger, more luxurious and far more expensive.
In 2008 the industry came to a halt. Since then, the market has picked up significantly and began following the luxury housing market as it once used to. During the recession yacht sales didn’t stop because billionaires were hurting for money. In fact, the world’s wealth grew for the extremely rich, but what prompted them to stop buying was their shareholders. It became a business decision when their workers were being laid off and foreclosing on small homes. How do you justify buying a superyacht when most of the shareholders and public is hurting? You can’t.
For yacht brokers the recession was crippling, but now it’s back and actually taking them by storm. Not only has it stabilized but it’s increased in momentum for the first time in many years.
The annual Fort Lauderdale Boat Show and the many other yacht shows are some of the strongest indicators for brokers and investors in the market. Right now there are 81 superyachts ordered, with more than 290 superyachts sold this year so far.
Recommended Reading
Here are a few recommended books for your enjoyment with links where you can acquire them:
Outrageous Yachts A book by Jill Bobrow, the author takes us on a magical journey of the world’s most elite status symbol: the superyacht.
Super Yachts: Cruising with Power and Style By Sibylle Kramer, this coffee table style book takes us through sixty motor yachts, ranging from the semi-affordable mass production yachts to the one of a kind superyachts built for the mogul.
Grand Ambition: An Extraordinary Yacht, the People Who Built It, and the Millionaire Who Can’t Really Afford It Authored by G. Bruce Knect, this book charts the course of Doug Von Allmen, a self-made multi-millionaire who built the $40 million, 185 Lady Linda and how this extraordinary feat would change him back into an ordinary man.
Yacht Clubs of the World By Bruno Cianci, this lovely book is a lavish list of the most exclusive and prestigious yacht clubs around the world.
Superyacht Sales in 2014
SUPERYACHT SALES IN 2014
NAME
TYPE
LENGTH
BUILDER
ASKING PRICE
MONTH
Viking 82
Motor
24.99m
Viking
4695000
August
Yasemi
Motor
25.50m
Posillipo
1900000
August
Nuberu Nau
Sail
28.45m
CNB
1450000
August
Yeratel G
Motor
39.62m
Westport
8900000
August
Natalia
Motor
36.60m
Palmer Johnson
5400000
August
Thalia
Sail
48.40m
Vitters
6000000
August
Estel
Motor
26.97m
Arno
1300000
August
Sunseeker 40m
Motor
40.05m
Sunseeker
no price
August
Matica
Motor
32.00m
Moonen
no price
August
Blue Papillon
Sail
29.73m
Jongert
3000000
August
Fantasia Nord
Motor
24.90m
Sunseeker
1250000
August
Illusion
Motor
88.80m
Pride Yachts
99500000
August
Midnight Sun II
Motor
36.45m
ISA
3400000
August
Pestifer
Motor
65.00m
Feadship
69750000
August
Trilogy
Motor
31.39m
Broward
995000
August
Hope
Motor
27.40m
Palmer Johnson
2450000
August
Kiss
Motor
47.50m
ISA
12900000
August
Ziacanaia
Motor
31.00m
Ferretti
2390000
August
Inclination 1
Motor
27.00m
Maiora
750000
August
Cara Maria
Sail
31.70m
Jongert
3950000
August
Chimera
Sail
31.21m
Alloy
4900000
August
Columbus Sport
Motor
40.00m
Palumbo
15500000
August
Natalita III
Motor
30.50m
Azimut
1395000
August
Orca Explorer
Motor
24.33m
Hatteras
3995000
August
Charade
Motor
48.88m
Feadship
13900000
August
Tribu
Motor
50.50m
Mondo Marine
11900000
August
Satu
Motor
27.50m
Yachting Developments
9995000
August
Bojangles
Motor
30.69m
Falcon Yachts
1490000
August
Joker
Motor
34.10m
Arno
2900000
August
Svea
Motor
27.00m
Arno
725000
August
Zigzag
Sail
27.71m
Nautor's Swan
5250000
August
Dolce
Motor
27.90m
Azimut
1249000
August
Breath of Horus
Sail
32.50m
Jongert
4450000
July
Mary Jean
Motor
49.82m
Campanella
11900000
July
Evil Zana
Motor
39.90m
Sunseeker
7950000
July
Olah
Motor
47.50m
ISA
11800000
July
Primadonna
Motor
34.10m
Westport
6250000
July
Auspicious
Motor
50.80m
Mondo Marine
18900000
July
Sailbad the Sinner
Motor
25.60m
Northcoast
1599000
July
Alfa Quattro
Motor
24.72m
Sunseeker
no price
July
NO.9
Motor
34.53m
Sunseeker
£9,800,000
July
Bluff
Motor
28.00m
Sunseeker
no price
July
Black Diamond
Motor
28.40m
Sunseeker
£3,250,000
July
Line Drive
Motor
34.10m
Westport
4500000
July
D'Natalin
Motor
46.00m
Delta Marine
6600000
July
Hakuna Matata
Motor
24.40m
Overmarine
850000
July
Psyrax
Sail
31.12m
Van Dam Nordia
2950000
July
Crescent 144
Motor
43.90m
Crescent
14500000
July
Pink Shrimp
Motor
32.00m
Jemison
4250000
July
Martlet
Motor
25.10m
Sunseeker
990000
July
To Life
Motor
24.30m
Lazzara
2150000
July
Vespucci
Motor
30.50m
CRN
900000
July
Alexander Two
Motor
41.00m
Mondo Marine
8800000
July
Paloma
Motor
30.00m
Sunseeker
3800000
July
Mariellina Gio Gio
Motor
43.00m
Arno
4000000
July
Elena B
Motor
26.60m
Cantieri di Pisa
1800000
July
St Vitamin
Motor
37.40m
Astondoa
5000000
July
Misunderstood
Motor
40.00m
Overmarine
9200000
July
Paradigm
Motor
35.05m
Benetti
5000000
July
First Episode
Motor
25.00m
Per Mare
700000
July
Capella C
Motor
59.00m
Scheepswerft Pot
4990000
July
Banyan
Motor
36.58m
Benetti
8950000
July
Red Sky
Motor
28.10m
Guy Couach
880000
July
Sokar
Motor
63.70m
Codecasa
15900000
July
Jaan
Motor
25.00m
Falcon Yachts
385000
July
Ithaka
Sail
26.70m
Jongert
3950000
July
Heritage III
Motor
38.00m
Broward
7595000
July
Astrelle
Motor
26.00m
Broward
695000
July
Boriken
Motor
24.83m
Weaver Boats
3995000
July
Diablo Blanco
Motor
32.89m
Sunseeker
4710475
July
Beegham
Motor
40.00m
Sunseeker
no price
July
Golden Eye
Motor
34.10m
Westport
5900000
June
Annoula
Motor
24.90m
Hatteras
420000
June
Lady Val
Motor
28.90m
Northcoast
1800000
June
Duke
Motor
24.30m
Canados
790000
June
Mao
Motor
39.50m
Overmarine
9200000
June
Fortaleza
Motor
25.90m
Inace
2750000
June
Pomboo
Motor
25.60m
Monte Fino
2350000
June
Larissa
Motor
38.63m
Sunseeker
11950000
June
Ecstasea
Motor
86.00m
Feadship
no price
June
Laura J
Motor
27.43m
Custom
1595000
June
Johnson 105
Motor
32.00m
Johnson Yachts
6200000
June
Cynthia
Motor
35.38m
Burger
9600000
June
Jubel
Motor
30.50m
Astondoa
1700000
June
Dark Knight
Motor
26.43m
Sunseeker
£3,495,000
June
Rasselas
Motor
62.00m
Feadship
57500000
June
Kampai
Motor
27.90m
Overmarine
2500000
June
Vanquish
Motor
36.50m
Palmer Johnson
5850000
June
Pacific 85
Motor
26.00m
Cammenga
795000
June
Triple Attraction
Motor
30.40m
Hatteras
4195000
June
Infinity
Motor
28.94m
Moonen
5250000
June
Adventurer
Motor
28.70m
Burger
1280000
June
Mystique
Motor
50.29m
Oceanfast
8900000
June
Odyssey
Motor
41.10m
Feadship
14000000
June
Seaflower
Motor
40.00m
Feadship
16500000
June
Horizon E88
Motor
27.24m
Horizon
6400000
June
Horizon E88
Motor
27.24m
Horizon
6400000
June
Horizon E88
Motor
27.24m
Horizon
6400000
June
Horizon E88
Motor
27.24m
Horizon
6400000
June
White Gold
Motor
25.10m
Sunseeker
£950,000
June
Bunny
Motor
31.00m
Sunseeker
£1,795,000
June
Noon Tease
Motor
25.00m
Alalunga
500000
June
Lady Diane II
Motor
36.60m
Sovereign
2750000
June
Firouzeh
Motor
37.00m
ISA
5850000
June
Matanthar
Motor
30.00m
Heesen
2250000
June
Domani
Motor
44.20m
Benetti
13750000
June
Liquidity
Motor
31.09m
Broward
595000
June
Lady Sheila
Motor
44.00m
Benetti
15900000
June
Star Sapphire
Motor
35.60m
Bilgin
3490000
June
Northern Spirit
Sail
37.00m
Perini Navi
4950000
June
Pegasus V
Motor
79.00m
Royal Denship
84900000
June
Anastasea II
Motor
35.90m
Overmarine
9900000
June
Jurata Star
Motor
26.00m
Riva
2400000
June
South
Motor
53.30m
Rossi Navi
21900000
June
Dimmidisi
Motor
25.05m
Overmarine
800000
June
Parsifal IV
Sail
56.00m
Perini Navi
26500000
June
Robusto
Motor
42.90m
Lloyds Ships
5000000
June
Amitie
Motor
30.78m
Hargrave
5495000
June
Tuscan Sun
Motor
44.80m
Izar
19950000
June
Business
Motor
24.99m
Viking
4399000
June
Hardworking 2
Motor
27.00m
Arno
1200000
May
Altair
Sail
27.71m
Nautor's Swan
5500000
May
Hero
Motor
31.10m
Falcon Yachts
2850000
May
Aslec 3
Motor
32.00m
Castagnola
1950000
May
Palmyre
Sail
24.75m
Holland Jachtbouw
1950000
May
Phantom
Motor
28.00m
Sunseeker
£3,850,000
May
Obrigado
Motor
29.87m
MCP
3250000
May
Blue Angel
Motor
34.00m
Arno
2750000
May
Eleven Eleven
Motor
26.00m
Ocean Alexander
3595000
May
Mi Sueno
Motor
57.90m
Trinity
36950000
May
Cyclos III
Sail
42.35m
Royal Huisman
2750000
May
Y II
Sail
37.00m
Holland Jachtbouw
10500000
May
Sea Dweller
Motor
45.72m
Heesen
9950000
May
White Cloud
Motor
67.30m
Feadship
10900000
May
4H
Motor
38.50m
Sanlorenzo
9950000
May
Champneys
Motor
24.97m
Sunseeker
925000
May
Carbon Copy
Motor
24.90m
Pacific Mariner
2250000
May
Monte Carlo
Motor
40.23m
Amels
3950000
May
MTG
Motor
27.40m
Pershing
4995000
May
Solar
Motor
26.00m
Arcadia Yachts
2600000
May
Crystal
Motor
33.80m
Deep Sea Marine
1495000
May
William Tai
Sail
40.67m
Royal Huisman
8750000
May
Horizon E88
Motor
27.24m
Horizon
6980000
May
Hilarium II
Motor
45.70m
Feadship
9650000
May
Alcanara
Sail
29.10m
Steve Ward
5800000
May
Bac O Booc
Motor
26.52m
Oceanfast
1795000
May
Tranquility
Motor
39.60m
Hatteras
4390000
May
Situations
Motor
30.48m
Broward
1250000
May
Camelot
Motor
37.50m
Royal Huisman
695000
May
QM of London
Motor
50.00m
Benetti
9950000
May
Admiral 37
Motor
37.00m
Admiral Tecnomar
no price
May
Makira
Motor
43.00m
Italyachts
9500000
May
Kahu
Motor
37.00m
Whangerai
2900000
May
Deema
Motor
28.60m
CRN
630000
May
Coconuts
Motor
31.75m
Benetti
8000000
May
Nero
Motor
90.10m
Corsair
39950000
May
Play the Game
Motor
28.15m
Sunseeker
no price
May
Meander
Motor
24.76m
Northern Marine
3250000
May
Ohana
Motor
46.90m
Admiral Marine
10900000
May
Imagination
Motor
47.00m
Benetti
16500000
May
Nara
Motor
60.55m
Feadship
9900000
May
Paraffin
Motor
60.10m
Feadship
39750000
May
Lady Janet
Motor
47.85m
Christensen
23900000
May
Waterford
Motor
33.52m
Hatteras
2795000
May
Ti Voglio Tanto Bene
Motor
41.46m
ISA
6900000
May
Wind Song VI
Motor
31.09m
Astondoa
2900000
May
Sarsen
Motor
69.00m
n/a
7000000
May
Aleksandar
Motor
26.48m
Sunseeker
2850000
May
My-Chelle
Motor
36.50m
Sovereign
3495000
May
Sea Jewel Bravo
Motor
36.00m
Trinity
5500000
May
Coup de Foudre
Motor
28.00m
Couach Yachts
690000
April
Lea
Motor
48.50m
Anastassiades
440000
April
Inevitable
Motor
31.30m
Westship
4500000
April
Elsa B
Motor
24.00m
Burger
995000
April
Alea II
Motor
27.50m
Canados
1490000
April
C.2232
Sail
60.00m
Perini Navi
no price
April
Keewaydin
Sail
33.53m
Palmer Johnson
2975000
April
Hanseat IV
Sail
24.60m
Austral Yachts
950000
April
Cartouche
Motor
30.50m
Couach Yachts
1295000
April
Ngoni
Sail
29.65m
Baltic Yachts
2800000
April
Madcap
Motor
30.05m
Palmer Johnson
3500000
April
Endeavour
Motor
25.60m
Princess
1499000
April
Stellar
Motor
39.62m
Westport
12995000
April
Grits
Motor
24.40m
Offshore
3850000
April
Carpe Diem
Motor
35.05m
Crescent
3995000
April
Deep Blue
Motor
35.96m
Brooke Marine
1450000
April
Phaedra I
Motor
24.00m
Benetti Sail Division
1395000
April
Cherish
Motor
33.80m
Broward
1785000
April
Issana
Motor
55.50m
Feadship
28000000
April
Equinox II
Motor
24.30m
Cheoy Lee
999000
April
Limerick
Motor
25.30m
Burger
849000
April
Madsummer
Motor
44.65m
Feadship
27500000
April
Abbracci
Motor
34.70m
Broward
3250000
April
Crescendo
Motor
24.38m
Ocean Alexander
2495000
April
Wishes Granted
Motor
25.00m
Horizon
1750000
April
Ginerva
Motor
35.62m
Tecnomar
3100000
April
Serenity
Motor
35.35m
Lazzara
7485000
April
Inevitable
Motor
49.80m
Feadship
16250000
April
Mar
Motor
49.90m
Ortona Navi
13500000
April
Bacarella
Motor
60.00m
Trinity
32500000
April
Why Worry
Motor
39.60m
Maiora
7500000
April
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