Bids have been accepted for the assets of American Queen Voyages (AQV), marking the end of an era for the U.S. river cruise line but possibly the start of a new one for its four riverboats and two Great Lakes vessels.
AQV ceased operations in late February, shortly before its parent company, Hornblower, declared bankruptcy, sending the cruise line's fleet to the auction block.
American Cruise Lines (ACL) will acquire all four of the paddlewheelers that made up AQV's river cruise fleet, including the company's largest and flagship vessel, the American Queen, along with the American Countess, the American Empress and the American Duchess.
ACL emerged as the top bidder for the ships, with the American Queen netting the largest sum, $2.15 million, and the American Countess and American Empress going for $1.6 million apiece. The bid for the American Duchess was $200,000.
ACL said that the company would announce additional details of the acquisition once the Hornblower bankruptcy process is concluded.
Industry professionals were not surprised that ACL, the leading river cruise line in the U.S., purchased the ships. The Guilford, Conn.-based company currently operates four paddlewheelers among its fleet of 25 vessels.
"It's a smart move for them. They were an obvious candidate given their existing platform," said Peter Shaerf, managing director at AMA Capital Partners, an investment banking firm focused on the maritime sector. "It will be interesting to see if they retain the AQV brand or incorporate it under their existing operation."
ACL also purchased AQV's intellectual property, which includes all associated trademarks, website domain names and certain business records, for $750,000.
Meanwhile, American Queen Voyages founder and former chairman John Waggoner was the top bidder for the defunct company's Great Lakes vessels, the Ocean Navigator and Ocean Voyager. Waggoner will purchase the ships for less than a million dollars each, according to documents reviewed by Travel Weekly.
Advisors welcome ACL's purchase
ACL's purchase of the paddlewheelers was welcome news to Pleasant Holidays, one of the largest creditors listed in AQV's bankruptcy filings.
"We believe this is good news for the cruise industry as the ships will resume operating on U.S. rivers providing additional options to travel advisors and their clients," said Jack Richards, CEO of Pleasant. "American Cruise Lines is an excellent partner, and we look forward to the American Queen ships resuming operations."
Signature Travel Network CEO Alex Sharpe echoed Richards' sentiments, adding that having a proven operator like ACL take on the former company's ships is an "absolute win for everyone."
"The fact that we are good partners with them makes the transition for advisors and their customers that much easier, I expect," Sharpe said. "I love the idea that we have more diversified product to offer, but with the comfort of a tried-and-true operator we know."
Signature had ended its partnership with AQV at the beginning of the year due to repeated service issues and late commission payments, while Pleasant had suspended sales of the line in November over the same issues.
Erin Richards, an advisor with Huckleberry Travel in Riverside, Calif., also said she was pleased that AQV's ships have found a home, adding that she is looking forward to having that capacity back on U.S. rivers and hopes ACL makes them part of the brand "sooner rather than later."
Richards, who regularly books clients on U.S. river cruises, said one of the challenges with domestic river cruising is inventory, with certain specialty cruise itineraries, such as ones focused on the Kentucky Derby, having very limited availability.
"Cruises sell out fast [and with specialty cruises, sometimes multiple years in advance] in a way that you just don't see in Europe," she said, adding that some itineraries are offered only once a year or on one ship, which can make sourcing and converting bookings difficult.
"I know that so many of the itineraries can sell out up to two years in advance, so [ACL] adding this many new ships can only be a bonus," Richards said. "I think this is great news."