Here is a retirement idea—your own condominium on board a luxurious ship owned by its residents. It is The World, a 43,500-ton, $330 million, purpose-built vessel put into service in 2002. The house-at-sea concept is successful with 95% of the available 165 residences sold as of November 2005. While full capacity is more than 350 owners and guests, average occupancy is between 150 and 200, all supported by a crew of 250. Management of The World is by Miami-based ResidenSea Ltd. who represents the owners.
Today's cruise ship industry offers a broad spectrum of diversified products. This diversity is seen in the sizes and shapes of the ships and the programs they offer. At 150,000 tons and 2,600 passengers, the Queen Mary 2 is the world's largest passenger ship. At the other end of the scale are small boutique ships carrying 150 or fewer passengers. The small size of these ships enables them to visit smaller, less crowded ports.
In a category by itself is the condominium ship. While The World is the only one at present, other companies are planning similar vessels within the next two to five years. A leading competitor is the giant Four Seasons hotel and resort chain. They have contracted for a new ship that should be in service by 2007 or 2008. At 42,500 tons the M/S Four Seasons will have 100 condo units that will be priced from $4 to $15 million.
On board The World there are 106 two- and three-bedroom apartments at 1,100- to 3,200-square feet, 19 oneand two-bedroom studio apartments at 675- to 1,000-square feet and 40 studios having 350-square feet. All have outside locations with the higher-end units having their own veranda decks.
The cost for the 675-square-foot studio is about $875,000. The most expensive apartment is a $6.3 million, 4-bedroom, 4-bath unit with living room, dining room, and kitchen.
As with condominiums on land, there is a condo fee for each owner that is proportional to the area of his or her residence. In general, it comes to about 6% of the unit's purchase price. For the smallest studio it would be about $52,500 per year while the largest apartment will pay close to $370,000. The fees pay for ship operations, maintenance, and management.
While the basic scheme is to sell all the condos and operate the ship with income from annual operating fees, there are also opportunities to rent some units. Very few owners live aboard year round so most will rent their studios and apartments to qualified people. ResidenSea Ltd. handles the rentals and management of these units permitting owners to get some offset for their costs of ownership. The daily cost for rentals is $1,200 for a studio and $2,300 for an apartment with a minimum seven-day stay required.
While all the condos have kitchen facilities, residents do not have to cook to eat. The World staff can arrange for meals to be catered and prepared in the apartment or dining is available at one of the four major restaurants on board. In addition, there are two locations where light meals and snacks can be obtained. One is a deli that provides prepared carryout food.
The World has a half-dozen bars and cocktail lounges to cater to the sociable and thirsty and a special "Cigar Club" for those who enjoy a fine smoke with their brandy.
On-board entertainment ranging from solo performers to small groups doing modest production numbers is offered in lounges and a main theater. Programs and performers are continuously changed as the ship moves through different parts of the world. In addition, visiting enrichment lecturers present programs that inform the residents about places and events to be visited. A large shipboard library, "The Study," has an extensive collection of books, videotapes, and DVDs.
The World circles the globe about every two years. The owners, through their association, determine the routing and ports of call. Prolonged port visits are made where major events are happening nearby. For example, the ship may stay in Rio for several days during Carnival, New Orleans during Mardi Gras, or in Cannes for the Film Festival.
In December 2002-January 2003, the ship carried 310 residents to Antarctica. The trip will be repeated January 2007 with landings on the Antarctic continent, South Georgia Island, and the Falklands. Seven inflatable Zodiac boats will carry the residents ashore at selected sites where there are no docks for conventional boats.
If your net worth is at least $5 million you may qualify to buy a residence. If not, enjoy The World vicariously at www.residensea.com.