Business
Queen Mary, once a sinking white elephant, shows signs of remarkable revival
The Queen Mary has for years been a landmark in the city of Long Beach, an iconic ocean liner serving as a majestic sentry at the port and a popular attraction for both tourists and locals.
But the aging ship has in recent years become more of a white elephant, in need of millions of dollars in repairs just to stay afloat.
Years of mounting financial woes, a pandemic shutdown and the need for an overhaul made for an uncertain future for the Queen Mary. Financial audits showed the ship was running a deficit, and at least one report warned that it was at risk of sinking if it didn’t get that crucial repair work.
But now, the 90-year-old ship seems to be headed for smoother sailing, with financial records showing it is finally turning a profit for the city of Long Beach.
On the ocean liner that has been turned into a hotel and tourist attraction, rooms are being booked, visitors are touring the ship, and the Queen Mary’s operator said the number of visitors had been outpacing the figures from before the COVID pandemic, signaling a new, hopefully better, era for the famous ship docked in the Long Beach harbor.
But the recent financial turnaround will do little in the short term to address the extensive repairs needed to keep the ship afloat and open to the public.
The Queen Mary closed for more than three years because of the pandemic, and stayed closed due to those much-needed repairs. But once the ship reopened in April — this time under the city’s direction instead of a leaseholder — visitors began to return in greater numbers. Although the ship still needs significant mending, new paint, new floors and other work to keep the ship safe for visitors was completed. The ship has about 200 rooms and several large halls that can be booked for weddings and other gatherings.
“Even though it’s been here since 1967, it was kind of a relaunch — a new Queen Mary if you will,” said Steve Caloca, managing director of the ship under the contracted operator, Evolution.
It was a slow reopening, with just over a dozen rooms booked in the Queen Mary in all of April. But financial records obtained by The Times show the number of bookings quickly multiplied in the following weeks.
By July, more than 4,300 room nights were booked in the Queen Mary, and the ship’s operator has seen at least 3,730 bookings a month since.
“We reopened after a 3½-year hiatus, which is nice, and we’re making money, which is nice,” Caloca said.
The Queen Mary was still operating in a deficit during the first two months it reopened, according to financial information provided by the city. By June, however, the ship’s revenue had begun to outpace its expenses.
According to city records, between June and October of last year, the ship generated more than $12.6 million in revenue and more than $3 million in profits.
It’s not just rooms in the ship’s hotel that are bringing in visitors and their cash, Caloca said.
“We were getting the word out that there are things to do here,” he said. “It’s not just a beautiful ship.”
The Queen Mary began to offer old and new tours of the 1,019.5-foot ship, and hosting events to draw in locals, such as $10 entry fees on Tuesdays, he said.
A game room and revamped observation bar are available for overnight and day guests, and the ship also rolled out the commodore’s office, where officers are available to answer guests’ questions about the ship.
“We asked, what can guests do now that they’re staying at the Queen Mary; what kind of content can we provide?” Caloca said. “We’re able to create things for people to do here in Long Beach.”
For the city, it means the Queen Mary has generated more revenue in the last few months than it did for an entire year before the pandemic shut it down.
“Because of these new investments and amenities, we witnessed more visitors within six months of opening than we did in a full year prior to the pandemic, and I’m proud to share that the Queen’s profits in 2023 finished strong by coming back into the black for the first time in years,’’ said Long Beach Mayor Rex Richardson.
But the ship has also needed, and continues to need, repairs and maintenance, Caloca said.
Much of the work done on the ship has centered on keeping it safe for visitors, as well as regular upkeep like painting, new flooring and lighting, and replacing new boilers and electrical transformers on the ship.
For the Queen Mary, which has been in dire need of repairs and work for years, turning a profit in 2023 is a significant turnabout in its recent history.
Financial audits of the ship obtained by The Times show that from 2007 to 2019, the Queen Mary saw losses of more than $31 million.
A profit could mean the ship could get some much-needed TLC to keep it financially, and literally, afloat.
“When we get excited about the money, it’s not that we made a profit,” Caloca said. “It’s that we made money, but now we can put it back on the ship that we love so much.”
The city of Long Beach took over the Queen Mary in 2021 after worries that the aging ship was not being maintained. One 2017 study of the vessel found that it needed up to $289 million in upgrades and renovations, including work to keep parts of it from flooding.
Court documents and inspection reports also found that it needed $23 million to keep it from capsizing.
Making the ship a profit center for the city has been a challenge for several lease operators that have been hired to operate the ship over the last few decades — including the Walt Disney Co.
In 2005, Queen’s Seaport Development Inc. filed for Chapter 11 bankruptcy protection and was found by Long Beach to owe $3.4 million in back rent. In 2009, the hotel was also at about a 50% occupancy rate.
Now, the profits coming in can also be geared toward new activities and entertainment to keep attracting guests into the Queen Mary, Caloca said.
This summer, operators hope to reopen a movie theater at the ship, which can double as a lecture hall and host other events, Caloca said. Another 100 rooms are expected to open by April.
“It’s not just, ‘Let’s fix it so it doesn’t break,” Caloca said. “It’s also, ‘Let’s fix it and make it so people want to come.’”
Business
Disney+ to be part of a streaming bundle in Middle East
Walt Disney Co. is expanding its presence in the Middle East, inking a deal with Saudi media conglomerate MBC Group and UAE firm Anghami to form a streaming bundle.
The bundle will allow customers in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE to access a trio of streaming services — Disney+; MBC Group’s Shahid, which carries Arabic originals, live sports and events; and Anghami’s OSN+, which carries Arabic productions as well as Hollywood content.
The trio bundle costs AED89.99 per month, which is the price of two of the streaming services.
“This deal reflects a shared ambition between Disney+, Shahid and the MBC Group to shape the future of entertainment in the Middle East, a region that is seeing dynamic growth in the sector,” Karl Holmes, senior vice president and general manager of Disney+ EMEA, said in a statement.
Disney has already indicated it plans to grow in the Middle East.
Earlier this year, the company announced it would be building a new theme park in Abu Dhabi in partnership with local firm Miral, which would provide the capital, construction resources and operational oversight. Under the terms of the agreement, Disney would oversee the parks’ design, license its intellectual property and provide “operational expertise,” as well as collect a royalty.
Disney executives said at the time that the decision to build in the Middle East was a way to reach new audiences who were too far from the company’s current hubs in the U.S., Europe and Asia.
Business
Erewhon and others shut by fire set to reopen in Pacific Palisades mall
Fancy grocer Erewhon will return to Pacific Palisades in an entirely rebuilt store, as the neighborhood’s luxury mall, owned by developer Rick Caruso, undergoes renovations for a reopening next August.
Palisades Village has been closed since the Jan. 7 wildfire destroyed much of the neighborhood. The outdoor mall survived the blaze but needed to be refurbished to eliminate contaminants that the fire could have spread, Caruso said.
The developer is spending $60 million to bring back Palisades Village, removing and replacing drywall from stores and restaurants. Dirt from the outdoor areas is also being replaced.
Demolition is complete and the tenants’ spaces are now being restored, Caruso said.
“It was not a requirement to do that from a scientific standpoint,” he said. “But it was important to me to be able to tell guests that the property is safe and clean.”
Erewhon’s store was taken down to the studs and is being reconfigured with a larger outdoor seating area for dining and events.
When it opens its doors sometime next year, it will be the only grocer in the heart of the fire-ravaged neighborhood.
The announcement of Erewhon’s comeback marks a milestone in the recovery of Pacific Palisades and signals renewed investment in restoring essential neighborhood services and supporting the community’s long-term economic health, Caruso said.
A photograph of the exterior of Erewhon in Pacific Palisades in 2024.
(Kailyn Brown/Los Angeles Times)
“They are one of the sexiest supermarkets in the world now and they are in high demand,” he said. “Their committing to reopening is a big statement on the future of the Palisades and their belief that it’s going to be back stronger than ever.”
Caruso previously attributed the mall’s survival to the hard work of private firefighters and the fire-resistant materials used in the mall’s construction. The $200-million shopping and dining center opened in 2018 with a movie theater and a roster of upmarket tenants, including Erewhon.
“We’re honored to join the incredible effort underway at Palisades Village,” Erewhon Chief Executive Tony Antoci said in a statement. “Reopening is a meaningful way for us to contribute to the healing and renewal of this neighborhood.”
Erewhon has cultivated a following of shoppers who visit daily to grab a prepared meal or one of its celebrity-backed $20 smoothies.
The privately held company doesn’t share financial figures, but has said its all-day cafes occupy roughly 30% of its floor space and serve 100,000 customers each week.
Erewhon has also branched out beyond selling groceries.
Its fast-growing private-label line now includes Erewhon-branded apparel, bags, candles, nutritional supplements and bath and body products.
Erewhon will also open new stores in West Hollywood in February, in Glendale in May and at Caruso’s The Lakes at Thousand Oaks mall in July 2026.
About 90% of the tenants are expected to return to the mall when it reopens, Caruso said, including restaurants Angelini Ristorante & Bar and Hank’s. Local chef Nancy Silverton has agreed to move in with a new Italian steakhouse called Spacca Tutto.
In May, Pacific Palisades-based fashion designer Elyse Walker said she would reopen her eponymous store in Palisades Village after losing her 25-year flagship location on Antioch Street in the inferno.
Fashion designer Elyse Walker announced the reopening of her flagship store at the Palisades Village in May.
(Myung J. Chun/Los Angeles Times)
“People who live in the Palisades don’t want to leave,” Walker said at the time. “It’s a magical place.”
Caruso carried on annual holiday traditions at Palisades Village this year, including the lighting of a 50-foot Christmas tree for hundreds of celebrants Dec. 5. On Sunday evening, leaders from the Chabad Jewish Community Center of Pacific Palisades gathered at the mall to light a towering menorah.
A total of 6,822 structures were destroyed in the Palisades fire, including more than 5,500 residences and 100 commercial businesses, according to the California Department of Forestry and Fire Protection.
Caruso said he hopes the shopping center’s revival will inspire residents to return. His investment “shows my belief that the community is coming back,” he said. “Next year is going to be huge.”
Business
How the ‘Wicked’ Movies Boosted the Musical’s Broadway Sales
Oct. 30, 2003
Broadway Opening
“Wicked” is an undisputed juggernaut — one of the biggest productions in musical theater history. The stage show, by the composer Stephen Schwartz and the librettist Winnie Holzman, has grossed $1.8 billion on Broadway, and $6.2 billion globally. Worldwide, it has been seen by more than 72 million people.
But none of that was a foregone conclusion. Based on Gregory Maguire’s 1995 novel, which in turn was based on L. Frank Baum’s “The Wonderful Wizard of Oz,” the musical had a so-so reception during its pre-Broadway run in San Francisco in the spring of 2003. In New York that fall, it divided critics when it opened on Broadway at the Gershwin Theater, starring Idina Menzel as the green-skinned “wicked witch,” Elphaba, and Kristin Chenoweth as her frenemy, Glinda, a.k.a. the Good Witch of the South. (“There’s Trouble in Emerald City” was the headline on the review in The New York Times.)
“You wake up the morning after opening night, and some of those notices were pretty devastating, and you think, ‘Oh, well, this is the final word,’” Mantello said. “But then the audiences are telling you a completely different story.”
The production pretty quickly became a fan favorite, and over the years, audiences made the show their own. The “Wizard of Oz” base was, of course, a huge factor — the 1939 film is a much-loved American classic — but, also, the musical’s depiction of female friendship became a central part of its allure, and kept audiences returning for repeat viewings.
March 23, 2006
1,000th Broadway Performance
“Once word kicked in, it took on a life that none of us could have ever predicted,” Mantello said. “It was the audience, and not a critical consensus, that turned it into the hit that it became.”
Menzel, the original Elphaba, won a Tony Award for best leading actress in a musical in 2004. In 2005, the day before her final performance, she fell through a trap door onstage; she couldn’t perform at her last show, but made a cameo in a red tracksuit.
Sept. 27, 2006
‘Wicked’ International
The show expanded rapidly, and now has a global footprint. The London production opened in September 2006, after the prior year’s introduction of a North American tour and a production in Chicago, where it ran for three and a half years. Los Angeles, Japan and Germany began in 2007; and Australia in 2008. In the years since, productions have run in the Netherlands, Mexico, South Korea and Brazil; productions are still running in London and South Korea, and touring in North America.
Oct. 30, 2018
Another Milestone: 15 Years
In 2018, the show celebrated its 15th anniversary, a milestone achieved by few shows. And “Wicked” has continued to outpace its peers: It has since become the fourth-longest-running production in Broadway history, following “The Phantom of the Opera,” “Chicago” and the top-grossing show, “The Lion King.”
Sept. 14, 2021
‘Wicked’ Reopens After the Shutdown
Broadway shows were closed from the spring of 2020 through the fall of 2021 because of the coronavirus pandemic. In August 2021, the touring production of “Wicked” restarted in Dallas — the first Broadway touring production to do so — and in September 2021 “Wicked” reopened on Broadway.
Dec. 7, 2022
Yes, We’re Making a Movie
The idea of adapting “Wicked” for the screen goes way back. In fact, it predates the stage musical. Universal Pictures had optioned the novel but couldn’t figure out how to turn it into a film, and agreed to let Schwartz, working with Holzman, develop it into a stage musical first. (Universal didn’t miss out; it is one of the lead producers of the stage musical, along with Marc Platt and David Stone.)
Once the stage production became a ginormous hit, the film adaptation was an inevitability, but still there were false starts, abandoned schedules and creative-team overhauls along the way. News coverage of a film adaptation began in 2010; at one point, the director Stephen Daldry was attached and a 2019 release was announced; in 2021 Jon M. Chu became the director, and the next year he said it would be split into two films.
Grande and Erivo had both become fans via the stage show. Grande saw it with her grandmother on Broadway in 2004 (and met Chenoweth backstage); Erivo saw the London production when she was a student.
Feb. 11, 2024
Marketing Saturation
The “Wicked” films’ rollout began in earnest in early 2024, with a trailer that ran during the Super Bowl, and the actresses were ubiquitous throughout that year, including in promotional spots that aired during the Paris Summer Olympics. (NBC Universal, the parent company of Universal Pictures, has the American broadcasting right to the Games.)
The marketing budgets for most Hollywood films are vastly larger than those for Broadway shows. In this case, because there are two films — one released last year and one released last month — the marketing campaigns, as well as publicity and news coverage, was doubled. The films had an estimated marketing budget of at least $125 million each — or $250 million total — along with the numerous brand partnerships that also generated a ton of attention. By contrast, the Broadway show has an annual marketing budget of about $11 million.
Nov. 22, 2024
‘Wicked: Part I’ U.S. Theatrical Release
The movies’ effect on the stage production was significant. In 2023, “Wicked” grossed $97.85 million on Broadway; in 2024 it was up nearly 15 percent, to $112.13 million, and this year it expects to be up another 13.4 percent, to $127.3 million.
The show says the effect in London has also been sizable: It expects London “Wicked” grosses this year to be up 29.4 percent over last year, and last year the grosses were up 10.5 percent over the previous year. (The show also holds a record for the highest weekly grosses in West End history, set this year during the week that included New Year’s Day.)
“It’s amazing,” Schwartz said in an interview. “Before the movies came out, I wondered what the impact would be on the show. I don’t think any of us anticipated how strong it would be. You can never plan on this kind of thing, or even hope for it, but it’s really lovely.”
Dec. 25, 2024
$5 Million on Broadway
The Broadway production of “Wicked” grossed $5 million over Christmas week last year (just a month after the first film’s release) — it is the first and only Broadway show to gross that much in a single week. (It was also the first show to cross the $2 million mark and the $3 million mark.)
Nov. 21, 2025
‘Wicked: For Good’ U.S. Theatrical Release
What’s next? The second movie was released just before Thanksgiving, giving a second surge for “Wicked” in all its forms, and now the year looks to be ending strong for the stage show. The Broadway production grossed more than $3 million over Thanksgiving week (by comparison, it had generally been grossing $2.3 million to $2.5 million during Thanksgiving weeks that preceded the films’ release). Just around the corner: the Christmas and New Year’s stretch, always a good period for Broadway, and this year, even more so for “Wicked.”
Broadway grosses reflect the most recent box office receipts as reported by the Broadway League. Grosses are not adjusted for inflation.
Images: Sara Krulwich/The New York Times and Universal Pictures.
Videos: CBS; Wicked Musical Korea; Broadway.com; Theater Mania; Ariana Grande; Pink News; Out; FOX; NBC; Universal Pictures.
Produced by Leo Dominguez, Hollis Johnson, Rebecca Lieberman and Josephine Sedgwick. Additional reporting by Leo Dominguez and Jeremy Singer-Vine.
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