The fate of American Queen Voyages' (AQV) seven ships is top of mind following the shutdown of the domestic river cruise line last month and the bankruptcy of its parent company, Hornblower Group.
AQV's assets are scheduled to go to auction on March 27 if a buyer does not come forward before then, according to documents Hornblower filed late last month with the U.S. Bankruptcy Court in Houston.
The company's fleet includes four classic U.S.-flagged paddlewheelers: the flagship American Queen, the American Duchess, the American Empress and the American Countess. These ships sailed on the Mississippi, Columbia and Snake rivers.
AQV also owns two Bahamas-flagged coastal cruisers, the Ocean Navigator and Ocean Voyager, which previously operated on the Great Lakes, and has a long-term charter contract for the Ocean Victory, a Bahamas-flagged expedition ship that sailed between Alaska and the Pacific Northwest.
Speculation remains as to whether American Cruise Lines (ACL) or Viking, which both operate river cruises in the U.S., might have interest in buying any of AQV's ships.
ACL is rapidly expanding with its modern riverboats and coastal vessels. Its 20-ship fleet includes four paddlewheelers, three of which the company built at its shipyard in Maryland. Viking operates just one ship in the U.S., the Viking Mississippi.
ACL CEO Charles Robertson said it's still too early to know if the company will buy any of the AQV ships, but he did not rule it out.
"We're certainly going to be interested and are going to do all we can to understand what's available out there," he said.
Viking has not commented on its potential interest, but its Mississippi ship is stylistically different than the AQV vessels.
However, given the challenges of building cruise ships in the U.S. -- the Viking Mississippi debuted in 2022, five years after its originally planned launch, due in large part to shipbuilding delays -- a fleet of U.S.-flagged river vessels could be attractive to any potential domestic operator.
Peter Shaerf, managing director at AMA Capital Partners, said the American Queen is by far the most valuable ship in AQV's fleet despite being nearly 30 years old and said he could see that a buyer might single this ship out.
"It would not be a surprise to me to see ACL come in and bid, but I don't think they would bid a lot," Shaerf said.
Finding a buyer for the entire brand and fleet, he said, could prove more difficult. Rebuilding the AQV brand, on top of what could be a two- to three-year process that could include hefty renovation costs, is what the road ahead looks like for a potential buyer.
"What happens in bankruptcy is that the whole brand is destroyed," he said. "You've got to rebuild the brand. You've got to get back to profitability. It's a long road. These are old ships."
The American Queen debuted in 1995 and was extensively refurbished in 2013. American Duchess was built as a casino boat in 1995 and reconstructed as a river cruise vessel in 2017. American Countess also was built as a casino boat in 1995 and converted to an overnight ship in 2021. The American Empress debuted in 2003 and underwent a major refurbishment in 2014.
Finding a buyer to take the fleet and give it a rebrand would also be challenging, Shaerf said, as the brand would be in competition with ACL and Viking, which are operating new ships and plan to build more.
Floating alternative uses
It's possible that a buyer might find alternative uses for AQV's ships beyond overnight cruise vessels.
There are paddlewheelers that operate as permanently docked hotels and restaurants, such as in Savannah, Ga., and San Francisco. Shaerf said other real estate possibilities exist.
"Short day cruises, possibly. I think someone has to be creative," he said.
Even if no one buys AQV's ships, Shaerf said there is still value in the brand and other intellectual property assets, such as its mailing list.
"I would imagine that ACL's mailing list is pretty much the same [as AQV's]. I don't know that they would pay a lot for their mailing list,' Shaerf said. "But Viking, being newer to the game, might well want it."