Sunborn International signals plan to replace Gib hotel ship 

Sunborn International is considering replacing its vessel in Gibraltar with a newbuild hotel ship, redeploying its current superyacht to a new international location. 

Details of the proposed plan were revealed in a trading update issued by the group last week. 

“As part of its strategy to optimise long-term returns and asset productivity, Sunborn International is implementing a coordinated relocation programme across its existing fleet, designed to align each vessel with its most commercially attractive berth and market profile and thereby enhance revenue potential and return on invested capital,” the group said.  

“Under this programme, the current London yacht hotel is scheduled to be relocated to Seville, while the existing Gibraltar yacht hotel is intended to be redeployed to a new international location and replaced at its current berth by a newbuild vessel.” 

“Each step of the programme remains subject to the finalisation of commercial leases and applicable permitting processes.” 

The lease agreement for the Sunborn Gibraltar Yacht Hotel's berth at Gibraltar's Ocean Village Marina is valid until August 15, 2028.  

Sunborn International said its strategy is to continue its hotel operations in Gibraltar after the current berth agreement expires. 

“Sunborn International Group is currently negotiating for a new hotel ship with 140–160 rooms to be built in Gibraltar,” the group said. The current vessel has 189 rooms. 

“The design of this new vessel will incorporate over a decade of operational data collected in Gibraltar and reflect the latest market assumptions regarding the development and demand for hotel accommodation and restaurant services in the years ahead.” 

The group reported a weaker performance for its Gibraltar business in the first three months of 2026, though this was in comparison to a record-breaking first quarter in 2025. 

The group said demand for rooms in Gibraltar fell short of expectations in the first quarter this year, in part due to cancellations due to geopolitical developments. 

This led to a 9% drop to £2.1m in total revenue compared to the same period last year, when sales were exceptionally strong. 

The company nonetheless reported stable performance in its food and beverage and other revenues, which mitigated the shortfall in overall revenue. 

Writing in the quarterly report, chief executive Hans Niemi said restoring demand momentum in the corporate and ‘free independent traveller’ segments would be a key operational focus in the coming months. 

“The EU-UK-Gibraltar treaty and related opening of the border is now scheduled for July and is expected to positively impact demand,” he wrote. 

Separately, Sunborn Gibraltar is in the final stages of refinancing its outstanding senior secured bond of EUR 58 million.  

Closing of the new senior secured loan facility, provided by a mandated international lender, is expected during the first week of May 2026.  

As part of the ongoing refinancing structure, the Sunborn Gibraltar yacht hotel will be transferred from the Finnish maritime register to the Bahamas maritime register to accommodate post-Brexit Finnish maritime law regarding foreign owned vessels in the Finnish registry.  

The change of registry is part of the refinancing structure and is not expected to have a material impact on the group’s operations or financial position.