Massimo Fuduli ’25 pitched Royal Caribbean Group (NYSE: RCL) on March 17, 2025. Royal Caribbean is a global leader in the cruise vacation industry, operating 67 ships across three flagship brands—Royal Caribbean International, Celebrity Cruises, and Silversea Cruises—and holding a 50% joint venture in TUI Cruises. Headquartered in Miami, Royal Caribbean serves over 1,000 destinations across all seven continents, with North America generating approximately 65% of its total revenue. The company’s product offerings range from mass-market cruises to ultra-luxury and expedition experiences in remote areas like Antarctica and the Galapagos Islands. Recent innovations, such as private island destinations like Perfect Day at CocoCay and the upcoming Royal Beach Club in the Bahamas and Cozumel, have set Royal Caribbean apart in delivering unique vacation experiences. Its diversified fleet, advanced onboard technology, and ESG-driven initiatives—including plans for a net-zero cruise ship by 2035—position the company as a sustainability-forward market leader.
Massimo’s investment thesis highlighted Royal Caribbean’s strong post-pandemic recovery, record-breaking demand for cruise travel, and robust profitability momentum. Massimo noted that Royal Caribbean’s growth strategy—including new river cruises under the Celebrity brand, increased short cruise itineraries, and strategic expansion into private destinations—offers a competitive edge in a resurgent travel market. Additionally, the company’s Trifecta Program, which targets ambitious financial goals by 2025, has already delivered triple-digit EBITDA per cruise day and double-digit EPS, further reinforcing confidence in its long-term value creation. Royal Caribbean’s ability to innovate, meet rising demand, and maintain strong financial performance makes it a compelling opportunity in the consumer discretionary sector.
SMIF agreed to purchase $41,000 of RCL, funded by the sale of our Chipotle (CMG) position and a minor trim of the Home Depot (HD) position.
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