Cruise & Cruise Line

Celebrity Ends Deal with Spa Operator

Theresa Norton
by Theresa Norton
Last updated: 12:39 PM ET, Mon December 30, 2013

Celebrity Cruises is ending its long-term relationship with Steiner Leisure Ltd., the predominant operator of cruise ship spa and salons, effective Dec. 31.

Steiner announced in a press release that it was "advised" by Celebrity that the partnership "would not be renewed after its expiration" on Dec. 31.

Celebrity declined to reveal who would operate its shipboard spas, but said it plans to make an announcement soon.

"Steiner has been an excellent partner over the years," Celebrity said in a statement. "We thank them for helping us deliver high-quality spa experiences to our valued guests. Celebrity Cruises looks forward to making an announcement regarding our new spa and wellness partner in the near future."

Steiner said it is negotiating a transition plan as the spas are turned over to the new vendor. The spa operator said the termination would negatively impact earnings by no more than 24 cents per share.

"We, of course, are disappointed with Celebrity's decision, particularly in view of our revenues being at historical highs on Celebrity's ships," said Leonard Fluxman, president and CEO of Steiner Leisure. "We believe that the terms we proposed for renewal contained compelling economics and it also contained a unique brand at sea.

"It is our understanding that Celebrity's decision was made purely from a marketing perspective. We hope that we will have the opportunity to serve more Celebrity ships at some time in the future."

Steiner currently operates spas on 155 ships. Steiner's land-based customers include Caesar's Entertainment, Hilton Hotels, Kerzner International, Loews Hotels, Marriott Hotels, Nikko Hotels, Planet Hollywood, Sofitel Luxury Hotels, St. Regis Hotels, W Hotels and Resorts and Westin Hotels and Resorts.

The company's brands include Elemis, Mandara and Bliss.


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