Is a Yacht a Good Investment? Bob Denison Weighs In

Few people in the yachting world carry the kind of institutional knowledge that Bob Denison does. As President of Denison Yachting, he represents the third generation of a family that helped shape the modern yachting industry in Fort Lauderdale. His grandfather, Frank Denison, founded Broward Marine. His father, Kit Denison, established Denison Marine. Bob took the helm of the family brokerage in 2002 and has grown it into one of the largest yacht brokerages in the world.

Below, Bob shares his thoughts on some of the most pressing questions surrounding yacht ownership and investment.

Can a yacht genuinely become an investment?

A yacht is a hard asset to ever justify as a financial investment. Yachts are expensive, they depreciate over time, and they cost a lot to maintain. It is possible to “make a return.” There are examples of owners who have sold their yacht for more than they paid for her, but it’s a rarity. When you factor in running costs, crew salaries, insurance, brokerage commissions, and everything else, that so-called “investment” was likely a net loss on paper.

Saying all of that, a yacht is absolutely a great investment in your family, lifelong memories, and new experiences that are hard to find anywhere else. It’s been better said by those before me: “Don’t analyze your pleasures.”

Under which circumstances can ownership come close to making financial sense?

We’ve seen owners buy a yacht at a great price, often in a distressed situation for the seller. In that scenario, it’s possible for the yacht to be aggressively chartered to cover a decent chunk of operating expenses, but it’s very rarely 100%.

When does buying a yacht become a financial mistake?

When the expenses of running a yacht become stressful to the owner, the yacht can easily become a “mistake.” Most owners soberly count the cost of ownership and understand the risk and burden going in. Many of those owners continue to stay owners, and often buy even bigger yachts, because the financial pressures are far outweighed by the joys of experiencing life onboard surrounded by their favorite people.

Can charter realistically offset ownership costs?

Very much so, but rarely all operating costs. The programs that come close to covering ownership costs, or occasionally surpass them, are run by principals who carefully manage the program, maintain very disciplined crew, and are willing to forgo using their yacht during peak season, and especially around holidays like Christmas.

What about co-ownership models?

Co-ownership is becoming more popular. We’ve seen partnerships on the rise, and we expect to see more programs and shared-consumption models emerge in the coming years to help owners and crew navigate the complexities. I’m very bullish on this being a strong model going forward, one that most prospective owners should seriously consider.

Which segment of the yacht market looks most resilient from an investment perspective today?

The most promising segments of the market tend to be 60 meters and above. But those programs need to have strong reputations within the charter community, built largely on great crew and a well-stocked toy collection. Yachts that have that elusive sixth stateroom, along with dedicated spaces for spa, gym, and wellness, tend to generate the highest returns on the charter market.

Are yacht buyers becoming more financially analytical, or is emotion still the dominant force?

Emotion is still the dominant force when buying a yacht, but many owners and family offices are spending more time understanding the total cost of ownership, including looking around the corner at unexpected maintenance and crew scenarios. We’re seeing more and more AI tools emerge to help with all of it.

What do wealthy clients really buy when they buy a yacht?

Yacht owners value the ability to go anywhere in the world, spending time with family and close friends in total comfort and complete privacy. Yachts also seem to be one of those rare places on earth where kids and grandkids forget where they left their iPad and can be found being present with those around them, maybe even doing a cannonball off the back deck. Hard to put a price tag on that.

Bob Denison is the President of Denison Yachting, one of the world’s largest yacht brokerages, headquartered in Fort Lauderdale, Florida.