FULL STEAM AHEA D

What’s happening in the yacht market in the USA, and why does Heesen seem to be so well positioned to take advantage of the surge in Stateside interest?

TEXT BY JILL BOBROW

Talk to any yacht broker and, without a doubt, they’ll tell you that the hottest market for superyacht sales today is the United States. Heesen only attends four international yacht shows a year, and two of them are Stateside - Fort Lauderdale, and Palm Beach.

It is no secret that 2021 was off the charts in terms of US yacht sales, and 2022 came a close second. The American appetite for buying brokerage boats and commissioning new builds remains robust. The lack of brokerage inventory (as well as charter yacht availability) means yacht brokers have to scramble to meet their clients’ requests.

There are several theories as to why there has been such a recent spike in yacht sales and charter bookings. While exact statistics of the number of US billionaires fluctuates depending on whether you ask Wealth-X, Forbes, FOX, or CNN, suffice it to say the total wealth of US billionaires hit an all-time high in the last couple of years with a hugely significant gain over pre-pandemic assets.

Obviously not every billionaire owns a yacht or wants to. But unquestionably, the increase of personal wealth for some and the isolation of the global pandemic had many looking for somewhere to quarantine in safety and comfort with their families. Also, given the unpredictability of the duration of the pandemic, many people—undertaking less travel, and working remotely—had time to take stock of their lives and reassess what was important to them. The upfront realisation that life is ephemeral has become particularly poignant. Many experienced yacht owners traded up to include more family and friends aboard. And the uninitiated who got a taste of the yachting experience — maybe through friends — are now actively looking to get involved.

“We have not seen the Euro on par with the US Dollar since 1998,” says Thom Conboy, Heesen’s director of sales for North America, Mexico, the Bahamas, and the Caribbean. “And that helps tremendously with Americans looking to buy a European built yacht.” Conboy first worked for Heesen in 2001 and knows the company probably better than any American broker.

“We own the market in the 50 to 60-metre size range in Northern Europe — and that is the sweet spot for our American clients.” He elaborates: “Ten shipyards in North America and four in New Zealand that used to build in our size range have ceased to exist, but we at Heesen have staying power. We build great boats, and we offer great after sales service.”

Conboy also attributes Heesen’s success in America to a larger Heesen fleet, which is resulting in more brand recognition. “Back in the early 2000s when I started with Heesen, we built apples and oranges. They were good apples and oranges, but the company did not have the clear consistent trajectory that it has now.”

Bob Denison, president of Denison Yachting, who grew up in the yachting industry in Fort Lauderdale, reiterates that the 2021 sales stats were record breaking and says: “2022, while a little off from 2021, was still stronger than any other year in the last 20.” Denison’s grandfather Frank Denison and father Kit Denison founded Broward Marine and Denison Marine respectively. Bob assumed all management roles of his father’s brokerage in 2002 and is well apprised of market trends. “The supply and inventory are light now,” he says, “but since we have a really stable market, the good news is yachts are holding their value. We have seen many scenarios whereby yacht owners are selling their yachts for more than they paid for them.”

Denison explains that Heesen is well positioned in the American market for a number of reasons. “Americans have a love affair with speed, and Heesen yachts are known to go fast; we also appreciate shallow drafts so we can zip over to the Bahamas, and Americans like ‘not waiting’ and Heesen has a shorter build time frame than other northern European yards.”

Christian Bakewell, a veteran Beverly Hills sales and charter broker with Burgess, has recently returned from Burgess’s annual brokers’ conference in Amsterdam. The word from the conference was that while the US was always a significant market for Burgess, it has only got bigger since the Covid pandemic. “People are not used to not being able to control their own destinies,” says Bakewell, “so a yacht became a vehicle to regain that control coming out of the pandemic. Many of our clients were anxious to charter as a way to travel with a feeling of security. Not only were our usual clients looking for charter and sales, but their friends also got introduced to yachts for the first time and they wanted in.”

Bakewell says that with inventory so low, quick sales at boat shows have become more common. “I had a sale that happened in two days, with the particulars of the deal literally being consummated in real time on board the yacht.” Bakewell also touted Burgess’s management services. “New people in the yacht market do not know how to navigate all the legal intricacies of owning a yacht, crew management and so on, and are seeking our help. Burgess does not advertise many of its yacht sales due to privacy concerns of our clients, but I can share with you that as a company we have had a record sales year.”

Bakewell mentions that currently with a market backlog of slots for custom builds, Heesen has the advantage of shorter build times. “This is very attractive to first time buyers,” says Bakewell. “Also, the full custom build process can be a bit overwhelming, so having a yacht built at Heesen where there are a number of series platforms to choose from and where a buyer only has to a make personal light touch to the interior, makes the whole process less daunting. Clients can get new construction with north European pedigree at a slightly reduced cost because Heesen yachts are built on tried and true platforms. It’s a win-win situation. We have many US clients looking for a 50-metre yacht under 500GT. Heesen has carved out a very good niche in that market.”

Josh Gulbranson, a Fort Lauderdale-based broker with Fraser Yachts for the last 15 years, is a former captain who made the decision to come ashore and become a broker when he got married and had children. Josh’s most recent connection to the shipyard was the sale of a highly customized Heesen that was originally built for Heesen founder Frans Heesen — the 47-metre Odyssea.

Gulbranson says that while sales numbers for 2022 are not as strong as 2021, the market is moving along with numbers well exceeding those in 2019. “Fraser has a strong client base of existing and new clients looking to buy, some of whom are repeat owners who took a break over recent years but are now coming back into yachting. There’s been a great deal of new wealth created in the last decade and those people are now interested in a yachting lifestyle,” he says. “Heesen offers short delivery times paralleled with northern European quality. Few builders can offer this.” Gulbranson also says the Heesen team has been an asset in working alongside his clients. “I’ve found Heesen very willing to support their early model builds. In recent years, after several visits to the shipyard, with confidence, I can assure customers they will receive a fair deal and support from the shipyard to follow them during their ownership. Heesen’s quality for value is exceptional. It’s reassuring to know the Heesen company has been able to adapt its ownership structure and will continue to grow into the future.”

While Heesen has certainly enjoyed the 2021/22 boom, the company is not one to look backward. Thom Conboy says the next several months will be telling as to how 2023 shakes out. But one thing is certain - Heesen is a forward-looking and forward-thinking company.

MODERNISING THE 47-METRE ATINA