American Queen Voyages’ (AQV) seven ships are currently in limbo following the closure of the domestic river cruise line and the bankruptcy of its parent company, Hornblower Group. The fate of these ships is set to be decided at an auction on March 27, unless a buyer steps forward before then. The fleet includes iconic U.S.-flagged paddlewheelers, classic vessels like the American Queen, American Duchess, American Empress, and American Countess, which sailed on rivers like the Mississippi, Columbia, and Snake. In addition, AQV owns coastal cruisers and has a long-term charter for an expedition ship.
There is speculation that American Cruise Lines (ACL) or Viking may express interest in acquiring AQV’s ships. ACL, known for its modern riverboats and coastal vessels, is expanding rapidly with a 20-ship fleet that includes paddlewheelers. Viking, on the other hand, has just one ship in the U.S., the Viking Mississippi. The challenges of building cruise ships in the U.S., as evidenced by Viking’s delays, make a fleet of U.S.-flagged river vessels an attractive proposition. Peter Shaerf of AMA Capital Partners believes the American Queen could draw bids due to its value.
Should a buyer emerge, they would face the challenge of rebuilding the AQV brand. The process could take two to three years, including significant renovation costs, to return the fleet to profitability. The brand is perceived to have been damaged through bankruptcy, and rebuilding trust with customers would be a significant hurdle. The historical significance and age of the ships add to the challenge of finding a buyer for the entire brand and fleet. While some vessels have been refurbished, others may require additional work to meet modern standards.
If a buyer does not materialize for the entire fleet, there may still be opportunities. The ships could find alternative uses beyond overnight cruise vessels, such as operating as permanently docked hotels or restaurants. Additionally, short day cruises or other creative ideas could be explored to generate revenue from the vessels. Beyond the physical ships, there is also value in the AQV brand and intellectual property assets, such as mailing lists. However, the challenge lies in convincing potential buyers of the brand’s worth amidst competition from ACL and Viking.
The future of American Queen Voyages is uncertain, with the fate of its fleet hanging in the balance. Potential buyers will need to navigate the challenges of rebuilding a damaged brand, renovating aging vessels, and finding a niche in a competitive market. While the ships hold historical and sentimental value, their financial viability remains to be seen. Whether the fleet finds a new owner or alternative purpose, the legacy of AQV is sure to leave a mark on the river cruising industry.
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