Luxury yacht group taps Maltese market for €5 million investment

A group of entrepreneurs seeking €5 million on Malta’s prospects market are pitching the “luxury experience” market to investors on the back of the growing number of multi-millionaires.

Borgo Lifestyle – owned by entrepreneurs Claus and Jeanette Thottrup – will use the bond proceeds to channel €2 million as an interest-bearing loan to re-finance the construction of its 136-foot luxury yacht Satori, and €2.8 million to finance an upgrade of the five-star Borgo Santo Pietro Hotel in Siena, Italy.

The wooden sailing yacht, which takes inspiration from the classic schooners of the 1920s and 1930s, is positioned amongst the most luxurious and high-end sailing yachts in the world, and is registered and operated out of Malta. The vessel accommodates up to 10 guests and a crew of 8-9 people and includes five bedrooms, five external private areas and a very large internal saloon.

The Satori’s guests will enjoy Michelin-starred dining prepared by a personal chef from the Borgo Group’s restaurants Meo Modo and La Bottega del Buon Caffé, onboard spa facilities, a range of the latest innovative water toys, and an extensive programme of concierge activities managed by the Borgo Hotel.

At the charter price of €99,000 per week, excluding expenses, the Satori does not come for cheap.

Yet the group says that Knight Frank’s ‘The Wealth Report’ sees the number of ultra-wealthy people – those with net assets of US$50 million or more – rising by 10% in 2017. As at 2017 the population of persons with a net worth above US$5 million stood at 2,535,480, up from 2,108,530 at 2012 (up 20%) and is expected to increase to 3,617,550 or by 43% by 2022. The ultra-wealthy category (US$50 million or more) is expected to increase by 40% between 2017-2022.

And the overall luxury goods industry, including products and services, is worth approximately €915 billion today and is expected to reach about €1,260 billion in 2024.

“A significant trend within the luxury industry is the rise of experiential luxury, including categories such as high-end food and wine, luxury hotels, and exclusive vacations. By 2022, the experiential segment is forecast to account for nearly two-thirds of the total luxury market – representing a fundamental shift in consumer behaviour, from owning to being,” the company said.

This entails the concept of “luxury experiences”, with differing consumer experiences changing with culture: the Chinese were the largest market for luxury hotels, but affluent citizens of the United States of America, the next largest group, favoured Europe, especially Italy, Britain and France, looking for themes such as wellness, with unique spa treatments, yoga and meditation retreats.

“Today’s travellers are straying from ‘cookie-cutter’ hotel stays and seeking more authentic experiences. The further afield, the better for today’s intrepid travellers looking to escape the crowded tourist traps and head to under-the-radar destinations.”

Borgo Lifestyle says that a noticeable trend in the luxury yacht charter market is the rising demand for luxury yachts “due to the increasing wealth of people, with a preference especially in European countries such as Italy and Croatia…. improving disposable incomes is likely to have a positive influence on the global market. The emergence of high net worth individuals and growing demand for holidaying is also expected to open up several opportunities for the global market in the near future.”