Crescent Seas, a residential cruise start-up founded by real estate magnate Russell Galbut, has announced a significant change in its strategy. The company will no longer pursue the charter and conversion of two existing cruise ships from Norwegian Cruise Line Holdings (NCLH). Instead, Crescent Seas is now focusing entirely on building a brand-new, larger residential vessel, with a target delivery date in the fourth quarter of 2031.
This decision marks a pivot from the initial plan, which involved transforming Regent Seven Seas Cruises' Navigator and Oceania Cruises' Insignia into luxury seagoing residences. The move comes after extensive discussions with potential buyers and a re-evaluation of the conversion process.
Key Takeaways
- Crescent Seas abandons plans to convert existing NCLH ships.
- Company will now build a new, larger residential cruise ship named Ocean.
- Newbuild delivery targeted for late 2031.
- Decision driven by buyer demand for more space, customization, and cost efficiency.
- Residences on Ocean will be larger and more expensive, starting at $3.5 million.
Demand for Customization Drives New Direction
Russell Galbut explained that the change in strategy directly responds to feedback from high-net-worth individuals interested in purchasing residences. Buyers expressed a strong desire for more space and greater customization options than what could be realistically achieved through the conversion of older ships.
"It was just more logical to build brand new, from a cost standpoint and a stability standpoint," Galbut stated. He noted that significantly altering existing ships to add kitchens, cut steel, and make other necessary changes proved less efficient than starting with a fresh design.
The original plan for Seven Seas Navigator included an extensive conversion at Fincantieri's Sestri Ponente shipyard, with service as a residential ship beginning in December 2026. Insignia was set to follow in late 2027. These plans are now cancelled.
Fact Check
The new residential cruise ship, named Ocean, will measure 55,000 gross tons. This is nearly double the size of the Navigator's 28,000 gross tons.
NCLH Ships Remain in Fleet
Following Crescent Seas' decision, both Seven Seas Navigator and Oceania Insignia will remain part of the NCLH fleet. A spokesperson for Norwegian Cruise Line Holdings confirmed this development.
"We are thrilled that these beloved ships will continue to deliver the highest standards of world-class service and personalized signature hospitality that define both brands."
The spokesperson also announced that Seven Seas Navigator will undergo a multi-million dollar refurbishment in late 2026 to enhance the guest experience. Oceania Insignia will continue its existing service, with new itineraries for 2027 and 2028 expected to be announced soon.
Galbut praised NCLH for their cooperation throughout the initial planning stages. He emphasized that the shift was driven by customer preferences, not by issues with the cruise line.
Larger Residences, More Options
Thatcher Brown, CEO of Crescent Seas, highlighted that prospective buyers wanted to participate in the design of their seagoing homes. The company also underestimated the demand for larger units, with many buyers wanting to combine units for multi-generational travel.
On the Navigator, the residential conversion was initially planned for 210 units, which was later reduced to 189 due to the demand for bigger homes. This constant adjustment highlighted the limitations of retrofitting an existing ship for diverse residential needs.
Background Information
Russell Galbut is a prominent figure in real estate, known as the co-founder and managing principal of Miami-based Crescent Heights. His experience as one of America's largest condominium developers informs Crescent Seas' approach to residential living at sea.
The new ship, Ocean, will offer more than 200,000 square feet of salable inventory across 300 units. In contrast, Navigator had approximately 100,000 square feet of salable inventory across 255 staterooms, which would have been converted into 189 units.
While the newbuild units will be more expensive, starting at around $3.5 million and reaching up to $30 million, the per-unit maintenance costs are expected to be lower due to economies of scale. Residences on the Navigator were projected to average 500 square feet and sell for around $2 million, or $4,000 per square foot. The newbuild's pricing will be higher, ranging from $7,000 to $9,000 per square foot.
Future Fleet and Financing
Crescent Seas is currently in discussions with two shipyards and expects to sign a letter of intent soon. The shipyards are actively refining designs for Ocean. The late 2031 delivery date allows ample time for customization to meet individual purchaser requirements.
Galbut initially envisioned a fleet of five vessels, starting with existing ships and eventually adding newbuilds. Now, by beginning with a larger newbuild, the overall fleet size might be smaller, though he expects to order at least two ships. "We do believe it will be at least two ships because that's the only thing that makes sense for us to be in this business," he said.
- Financing Model: Approximately 40% of the units (120 residences) need to be sold to trigger construction and secure export credit financing.
- Developer Experience: Galbut draws on his experience in land-based condominium development, where projects often break ground with 30% or less of units sold.
- Technical Management: Crescent Seas will need to find a new partner for technical ship management, as NCLH was initially slated to handle this. Discussions are already underway with various ship management groups.
- Hospitality Services: The Apollo Group will continue to be the hospitality concessionaire for the new vessel.
The decision to build new means a different financial model for Crescent Seas. As the ship is constructed, the company will need to sell the remaining units or acquire them itself. Crescent Seas also plans to offer financing options to individual buyers, a service previously offered for the Navigator residences.
Building a Community at Sea
Crescent Seas aims to create a strong community among its residents. Thatcher Brown emphasized that involving buyers in the design process from an early stage helps foster this sense of community. "Bringing people into the design process and actively engaging them early on reinforces the notion of community," Brown noted.
Galbut affirmed that a newbuild was always part of Crescent Seas' long-term plan. He reflected that while starting with retrofits seemed "smart," the company did not fully anticipate the demand from affluent customers for highly customized and larger living spaces. Trying to implement such significant changes on a vessel like Navigator, which is already a luxurious ship, "just didn't feel right" and proved less cost-effective than building from scratch.
Despite the change in plans, Galbut believes the time spent exploring the initial conversions was valuable. "We did not lose six months of time," he said. "We actually gained a lot of insight and got to know a lot of individuals who want to buy on a new ship and who want to customize their residence. The audience we attracted is a great audience."
