Annual report [Section 13 and 15(d), not S-K Item 405]

Property and Equipment, Net

v3.25.4
Property and Equipment, Net
12 Months Ended
Dec. 31, 2025
Property Plant And Equipment [Abstract]  
Property and Equipment, Net

8.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

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​

​

​

​

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​

​

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December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

Ships

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$

20,729,022

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$

18,435,673

Ship improvements

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3,747,539

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3,269,898

Ships under construction

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1,321,431

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1,143,711

Land and land improvements

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58,370

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58,370

Private destinations and other

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1,489,694

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1,261,404

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​

 

27,346,056

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24,169,056

Less: accumulated depreciation

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(8,277,249)

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(7,358,406)

Property and equipment, net

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$

19,068,807

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$

16,810,650

​

The Company capitalized approximately $489.6 million of costs associated with ship improvements, $174.4 million related to private destinations and $162.8 million associated with other information technology assets during the year ended December 31, 2025. After concluding on a re-evaluation of the approach for our information technology assets during the three months ended December 31, 2025, we recognized a write-off of $95.1 million in depreciation and amortization expense related to an internal use-software project. Repairs and maintenance expenses including Dry-dock expenses were $212.0 million, $205.9 million and $160.8 million for the years ended December 31, 2025, 2024 and 2023, respectively, and were recorded within other cruise operating expense.

Ships under construction include progress payments to the shipyard, planning and design fees and other associated costs. Capitalized interest costs which were primarily associated with the construction or revitalization of ships amounted to $88.5 million, $59.9 million and $56.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.