Regent Seven Seas has confirmed an order for a new ship set for delivery in the summer of 2016.

The line has entered into a contract with Italy’s Fincantieri shipyard to build a new luxury vessel. The ship will increase Regent Seven Seas’ overall fleet capacity by almost 40%.

The vessel will be named Seven Seas Explorer and will accommodate 738 guests. It will be Regent’s third all-suite, all-balcony ship.

At 54,000 gross-registered tons, Seven Seas Explorer will be the largest vessel in the Regent Seven Seas Cruises fleet.

Frank Del Rio, Prestige Cruise Holdings chairman and chief executive, said: “This new ship order represents an exciting time of growth for our company as we build the next generation of cruise ships for the world’s most inclusive luxury cruise line.

“Seven Seas Explorer will be the most luxurious cruise ship ever built, boasting one of the highest space ratios and staff-to-guest ratios ever seen in the modern era of cruising enabling us to deliver the highly personalized service and extraordinary experience that is the hallmark of the Regent brand.”

The ship will feature 369 suites ranging from 300 square feet to 1,500 square feet, six open-seating restaurants, a nine-deck atrium, a two story theatre, three boutiques and a spa.

The contract price for the vessel is approximately $450 million, which the line claims makes it the most expensive luxury liner ever built.

Kunal Kamlani, the line’s president, said: “This new ship order is part of our disciplined growth strategy to expand our footprint in the luxury market.

“Since we purchased the Regent Seven Seas Cruises brand in 2008, the ships have sailed full with industry-leading yields. We strongly believe that now is the right time to expand our fleet as our loyal guests have asked for a greater array of itineraries and our travel partners have proven that there is pent-up demand for a new Regent ship.”

Fincantieri chief executive Giuseppe Bono said: “I am extremely pleased with this new order, which is all the more important because it establishes our global leadership in this sector and strengthens our presence in the luxury segment with the addition of another prestigious brand to our client list, also thanks to the fundamental synergy created by the country through agencies designated to promote Fincantieri exports.”

Further details about the ship will be announced in the coming months.