Richard Branson’s Virgin Voyages is seeking new funding

Virgin Voyages, Sir Richard Branson’s cruise company, is in the early stages of seeking hundreds of millions of dollars in fresh financing from new and existing investors.

The new round of funding comes as the Virgin Group founder faces financial turmoil elsewhere in his business empire. Virgin Orbit recently went under and Branson has been vocal about the impact the pandemic has had on its leisure activities, although it’s unclear what impact this has had on Virgin Voyages.

Virgin Voyages in financial turmoil?

According to Sky NewsVirgin Voyages is planning a new investment round with new and existing investors, with the company looking to raise hundreds of millions of dollars. Although it is too early to determine the extent of the fundraising or the mix of debt and equity, it would be necessary.

Virgin Voyages’ latest talks to raise finance come just seven months after the securing $550 million from investors. With two ships in the pipeline for this year, one of which has already been delayed, it’s not unlikely that the company will need funds to make it through the end of the year.

This disclosure of Virgin Voyages’ talks to raise new capital comes just days after Virgin Orbit, Sir Richard’s commercial satellite company, announced it would lay off the majority of its employees and cease operations due to a lack of funds. Branson this week poured $11 million into the company to fund the layoffs of nearly 700 employees.

Despite the potential financial issues, Virgin Voyages has been extremely successful in delivering on what it set out to do. From the start, Virgin has been a company that shook up the cruise industry and proved that a new cruise line could emerge and thrive.

The adults-only cruise line embarked on its 2021 maiden voyage from Portsmouth in August of the same year after a 15-month delay caused by COVID-19.

The company operates two cruise ships, the Scarlet Lady and the Brave ladywith a third ship, the Resistant ladydue for release next month, and a fourth Brilliant ladydue this year.

The delay in the first ship due to the pandemic, a delay in the third ship due to global supply issues, and low utilization in the year after the pandemic due to pandemic-related measures have certainly played a role in the company’s search for additional funds.

Virgin Voyages continues to sail and surprise guests on board, with the company adding a new Caribbean destination in January 2024.

New travel destination in the Caribbean

Virgin Voyages adds another new Caribbean destination, Antigua and Barbudashowing that the cruise line continues to develop its product despite the investments Virgin is seeking.

Fast-growing cruise hotspot Saint John’s, capital of Antigua and Barbuda, will start receiving calls from Virgin Voyages from January 2024

Cruises that include calls to Antigua also include calls to Tortola, British Virgin Islands; Pointe A Pitre; Bridgetown, Barbados; Castries, Saint Lucia; and finally Antigua before returning to San Juan, Puerto Rico.

Juan Trecastro, VP of Global Destinations at Virgin Voyages, announced Antigua will be a port of call for Brilliant lady. The ship stays in Antigua until 10:00 PM at each stop, giving guests more than enough time to explore what Antigua has to offer.

All three “lady ships” weigh 110,000 gross tons and can welcome up to 2,700 guests per trip, with 93% of the cabins offering sea views and 86% of the cabins offering spacious balconies.

Virgin Voyages currently operates two ships, Brave lady And Scarlet Lady. Resistant lady scheduled to launch on May 14, 2023. His first cruise is the seven nights Resistant lady Athens Mermaiden Itinerary.

Brilliant lady scheduled to launch on December 24, 2023with a five-day Brilliant Miami Mermaiden Holidays cruise, including stops in Puerto Plata/Amber Cove, St. Croix and San Juan.