Author Topic: SS Rotterdam -- the cost of the hotel ship  (Read 7539 times)

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Offline Isabelle Prondzynski

SS Rotterdam -- the cost of the hotel ship
« on: Jan 30, 2011, 11:37 AM »
An interesting article has appeared in the NRC Handelsblad about the cost of the SS Rotterdam renovation and its current success or otherwise from a financial point of view :

http://digitaleeditie.nrc.nl/digitaleeditie/NH/2011/0/20110128___/2_14/

The article is in Dutch, and I shall write up a short summary tomorrow for those of us who may not be so fluent in the language. Meanwhile, it is interesting even just to see what a big spread the main financial newspaper of the Netherlands is prepared to devote to this venture!
« Last Edit: Jan 30, 2011, 10:27 PM by Isabelle Prondzynski »

Offline Isabelle Prondzynski

Re: SS Rotterdam -- the cost of the hotel ship
« Reply #1 on: Jan 31, 2011, 01:02 PM »
Here is a summary of the article mentioned above.

The Rotterdam opened its doors on 15 February 2010 to guests who wished to dine, celebrate, stay overnight, get married, attend meetings and shop for souvenirs. The ship is not always busy...

The housing foundation "Woonbron" bought the ship in 2005 for EUR 1.8 million and renovated it to become a hotel and congress centre. In 2006, the decision was taken not just to renovate the initially planned 10,000 m2 but to extend the plans to 40,000 m2, with the need to remove far more asbestos. This brought the cost of renovation up to EUR 248 million, as opposed to the EUR 25 to 30 originally budgeted.

The Rotterdam has now become a training venue for 450 apprentices, who acquire some of their work experience here. This may be clearly visible in the lacking skills and uncaring attitudes of some of the Lido restaurant staff and is reflected in the complaints received after the ship was first opened.

The complaints do not extend to the tour guides, who show visitors around the engine room and the beautifully restored public rooms. These are enthusiastic volunteers, most of whom used to work on the ship themselves.

The fact that four different companies are working on the ship, makes co-ordination and management very difficult and start-up problems were inevitable.

In the first 10.5 months, the ship had 579,000 visitors, of whom 250,000 came to have lunch or dinner on board. The initial plans had an objective of 750,000 visitors; later, this was reduced to 600,000. By way of comparison, the zoo of Blijdorp has an annual 1.5 million visitors (2010) and is Rotterdam's most visited public attraction. It has to be noted that each aspect of the SS Rotterdam is counted separately : this means that any visitor who comes for dinner, spends the night and takes a guided tour next day, will be counted three times towards the total of 579,000 visitors. The hotel must also seek to attract more visitors mid-week, when cabin occupancy is at about 35 %, while week-end occupancy is at 68 %.

One of the problems is that the renovation turned out to be so expensive -- this means that all involved want to make money above all else.

The future is uncertain. The foundation Woonbron has meanwhile written off EUR 125 million. The ministry has allowed a postponement of the sale -- 30 % should have been sold by last month, but investors are reluctant to come forward. Interviews by the newspaper brought out both pessimistic and optimistic views for the future of the ship.
« Last Edit: Jan 31, 2011, 02:13 PM by Isabelle Prondzynski »

Offline Bruce Nicholls

Re: SS Rotterdam -- the cost of the hotel ship
« Reply #2 on: Feb 02, 2011, 10:11 AM »
Very interesting & a warning as to how hard it is to make these things actualy cover costs let alone pay.

So if they bought the ship for 1.8 million euro what was the scrap value?

Offline Tyne Turbine

Re: SS Rotterdam - The cost of the hotel ship
« Reply #3 on: Aug 11, 2011, 07:36 PM »
I have seen a report on another forum that an article has been seen that the Rotterdam is up for sale has anyone else heard such reports?

Online Rob Lightbody

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Re: SS Rotterdam - The cost of the hotel ship
« Reply #4 on: Aug 11, 2011, 07:56 PM »
I have seen a report on another forum that an article has been seen that the Rotterdam is up for sale has anyone else heard such reports?


I heard these reports a few months ago and investigated. I think it's the company rather than the ship itself, I forgot the exact situation but it wasn't as alarming as the ship just being up for grabs.
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Offline Twynkle

Re: SS Rotterdam - The cost of the hotel ship
« Reply #5 on: Aug 11, 2011, 09:57 PM »
If SS Rotterdam V is for sale, then Maritime Matters would surely have published something to the same effect.
There seems to be nothing to date....
http://maritimematters.com/

The only info I could find is here - it's not possible to find 'news' on any of the better known sites
http://shipstodayandyesterday.blogspot.com/2011/06/passenger-ship-ss-rotterdam-for-sale.html
http://www.seanews.com.tr/article/TURSHIP/CRUISENEWS/64084/SS-Rotterdam/

Offline Tyne Turbine

Re: SS Rotterdam - The cost of the hotel ship
« Reply #6 on: Nov 25, 2011, 01:30 AM »
I see that further to my earlier post  the January 2012 issue of Ships Monthly reports that despite attracting many visitors the Rotterdam is still failing to make a profit and is up for sale.

Offline pete cain

Re: SS Rotterdam - The cost of the hotel ship
« Reply #7 on: Nov 25, 2011, 07:23 PM »
 Looking at this link, it would appear that the owners were looking for a bit of cash in June,I hope this doesn't end in tears, she has been really well restored, good luck Rotterdam.................


http://www.ssrotterdam.net/

Newspage :   ' Woonbron in search of money'
« Last Edit: Nov 25, 2011, 08:04 PM by Isabelle Prondzynski »

Online Rob Lightbody

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Re: SS Rotterdam - The cost of the hotel ship
« Reply #8 on: Nov 26, 2011, 11:25 AM »
I see that further to my earlier post  the January 2012 issue of Ships Monthly reports that despite attracting many visitors the Rotterdam is still failing to make a profit and is up for sale.

I would love to know the full story. The conversion was a spectacular success in every way; the management has been a bit odd (the closed off public rooms meaning most of the wonderful interiors are hidden to visitors) but I think the main problem must be financing the debt from her conversion. I was told also that it was her owners rather than the hotel itself that were not making money and for sale.

Does anyone know anyone that can find out the facts?
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Offline Isabelle Prondzynski

Re: SS Rotterdam -- the cost of the hotel ship
« Reply #9 on: Nov 26, 2011, 08:29 PM »
This is probably still the same problem that I wrote about above :

https://www.theqe2story.com/forum/index.php/topic,2856.msg30977.html#msg30977

The Housing Foundation Woonbron took on the cost of the renovation quite reluctantly and expected to sell its share in the ship fairly quickly so as to return to its core business, i.e. providing low-cost housing for its members.

The problem, I guess, is not low profitability of the ship (I have been following the Rotterdam sites on Facebook, and there is a lot of successful activity going on), but the economic situation, where few investors are about and no one wants to make a somewhat more risky investment.

I believe that the Woonbron had a deadline for selling off the Rotterdam share, which has been extended, but it is hard to know how flexible that extension can be.

Offline pete cain

Re: SS Rotterdam -- the cost of the hotel ship
« Reply #10 on: Dec 17, 2011, 04:01 PM »
 January's   Sea Breezes, little item, the purchace of Rotterdam has been reduced to 87m euros.

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Re: SS Rotterdam -- the cost of the hotel ship
« Reply #11 on: Jan 12, 2012, 08:35 PM »
Hi all
In the January Issue of Ships Monthly there is an artical on the sale of the Rottterdam. The price has droped from 120 M euro to 81 M euro.
Her owners have said despite having over 500 000 visitors in her first year she is still not profitable.
With this said news does make you wonder what case could be made for QE2 returning to the UK as the QE2 is a bigger ship and would have higgher cost?

John

Offline Raymo

Re: SS Rotterdam -- the cost of the hotel ship
« Reply #12 on: Sep 19, 2012, 06:48 PM »
Here is a summary of the article mentioned above.

The housing foundation "Woonbron" bought the ship in 2005 for EUR 1.8 million and renovated it to become a hotel and congress centre. In 2006, the decision was taken not just to renovate the initially planned 10,000 m2 but to extend the plans to 40,000 m2, with the need to remove far more asbestos. This brought the cost of renovation up to EUR 248 million, as opposed to the EUR 25 to 30 originally budgeted.


248 million Euros  (apx. 8500 usd / ton ) would have been more than enough to build a new  solas 2010 replica  SS Rotterdam.

Europa 2  / 2013 (Hapag Lloyd) 340 million usd = apr. 8500 usd / ton
http://www.hl-cruises.com/ships/ms-europa-2/portrait/technical-data/

Offline Hank Hargrove

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Re: SS Rotterdam -- the cost of the hotel ship
« Reply #13 on: Apr 17, 2014, 03:16 PM »
248 million Euros  (apx. 8500 usd / ton ) would have been more than enough to build a new  solas 2010 replica  SS Rotterdam.

Europa 2  / 2013 (Hapag Lloyd) 340 million usd = apr. 8500 usd / ton
http://www.hl-cruises.com/ships/ms-europa-2/portrait/technical-data/

As mentioned elsewhere, the SS Rotterdam was sold in late 2012. Let's hope for the best.  :)
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