Repairs to the Queen Mary have cost the city of Long Beach more than $45 million over the past eight years, according to city records obtained by The Times, a hefty bill as the city seeks to keep the historic ship on a nascent path toward the profitability.
Repairs have included more than $3 million for rust and hull repairs, and $3.35 million for bulkhead repairs and lifeboat removal.
More repairs, both essential and costly, are still expected to keep the 90-year-old ship operational, but city officials are optimistic that the financial obstacles the ship has faced are easing. Last year, the Queen Mary generated more than $12.6 million in revenue, including more than $3 million in profits between June and October.
By the end of fiscal 2024 (the first year the ship has been in full operation since it was shut down during the COVID-19 pandemic), city officials expect the aging liner to generate a “modest profit” of $3. 6 million dollars.
“From an operational perspective, the Queen Mary is now able to cover operating expenses with regular operating revenue,” city officials said in a statement. “All revenue generated is invested directly into the ship and its surroundings.”
But city records, first reported by the Long Beach Business Journal, have offered a glimpse into the significant costs that have come with the city's effort to maintain and preserve the iconic vessel.
There was a time when the Queen Mary was dubbed the fastest and most luxurious cruise ship in the world. Her royal and celebrity guests included the Duke and Duchess of Windsor, Bob Hope and Elizabeth Taylor, who paid more for her poodle. She also transported soldiers to the European front during World War II.
After Long Beach purchased the Queen Mary from shipping company Cunard Line in 1967, several companies were hired to manage the ship and develop adjacent property.
In 2021, the city took over the Queen Mary amid concerns that it was not being maintained. City officials at the time knew that the liner was in desperate need of repairs.
A 2017 study estimated it could need up to $289 million in repairs and renovations, and court documents showed about $23 million in repairs were needed to prevent the once-majestic ship from capsizing.
In addition to needed repairs, city officials note that between 2007 and 2019, before Long Beach took over, private operators had reported more than $31 million in losses.
As of 2021, city officials said they had completed at least 25 major projects on the ship.
Most of the $45 million that has been spent on the ship, city officials said, has come from revenue from the Queen Mary or related subleases.
In 2017, around $23 million came from a Queen Mary reserve fund and a bond issue from the Queen Mary's Carnival sublease.
A $12 million agreement with the Port of Long Beach, which transferred control of about 14 acres of city property to the port to lease to third parties and split revenues with the city, also helped pay for some of the repairs.
Since the Queen Mary reported turning a profit last year, city officials have touted the ship and what they say has been a financial success.
Since October, city officials say more than 118,000 people have visited the ship, and the ship is once again becoming the center of the city's plans.
“The Queen Mary is thriving once again,” Steve Caloca, general manager of contract operator Evolution Hospitality, said in a statement. “From the new Art Deco floors and staircases in the main hall to the restored Observation Bar overlooking our beautiful city of Long Beach, there is much to do when visiting the Queen.”
Hotel capacity on the ship has been expanded to 200 rooms and onboard activities have been expanded to 22 guided tours, exhibitions and other activities.
Planned this year, city officials said, are hotel room renovations, elevator upgrades, repairs to the ship's third smokestack and an expansion of the Sun Deck, which is used for special events such as weddings.
The Queen Mary should also play a crucial role in the city's plans for the nearby area.
Officials are seeking to develop 43 acres of space next to the ship into “a world-class entertainment and mixed-use development site.”
“The return of live music, special events and music festivals on the Queen Mary and the adjacent Harry Bridges Memorial Park has further highlighted the importance of live music and entertainment to the ship's future success,” officials said. of the city in a statement. “This waterfront space, with expansive views of the Long Beach coast and downtown, collectively represents one of the city's most unique future development opportunities.”
And although the ship remains in need of repairs, city officials said its condition may not be as serious as previously believed.
The study that estimated up to $289 million in needed repairs included between $215 million and $261 million for hull repairs, city officials said in a statement. A more recent study of the hull and tank suggested the cost could be “considerably lower.”
“We envision an even brighter future for the Queen Mary and the adjacent lands with future development plans that will further elevate its status as a premier tourist destination,” Long Beach Mayor Rex Richardson said in a statement.
