In 1980 Terry MacRae and a partner acquired Hornblower Coach Tours. Included in the company assets was a 75-passenger catamaran, the M/V Admiral Hornblower. While business initially focused on private group charters, the company showed confidence in the future by signing a long-term facility lease in the Berkeley Marina in Berkeley, CA.

In 1992 Terry MacRae became the sole owner of Hornblower Yachts, Inc, which was rebranded as Hornblower Cruises & Events to more accurately reflect the products and services offered. Bucking a nationwide recession, Hornblower posted 10% annual revenue increase during the early 1990’s
The M/V Wild Goose, formerly John Wayne’s private yacht, joined the fleet in 1995. This vintage 1942 restored minesweeper continues to operate in Newport Beach.

In 1996 Hornblower Marine Services (HMS) was created to fill a need as a consultant to the booming riverboat casino and ferry service operations industry. By 2003, HMS grew to 80 employees, with offices in San Francisco, New London, Boston and Jacksonville. Three year later, HMS had become the leading worldwide provider of high speed ferry services. Operations today reach from Lake Michigan, to two U.S. border routes – Port Everglades, FL to Grand Bahamas Island and Rochester, NY to Toronto, Ontario – to a high speed catamaran, with capacity of almost 1,000 passengers and more than 200 vehicles, in Okinawa, Japan. HMS also manages car and passenger ferries in Alabama, Florida, and on the Delaware River between Philadelphia and Camden, New Jersey. In 2007, HMS will begin operating the Hawaii SuperFerry, a 900-passenger, 250-vehicle high-speed vessel serving four islands in the Aloha State.

Between 1997 and 2002 Hornblower operated in Lake Tahoe, beginning with the acquisition of Lake Tahoe Cruises Inc. and the vessels Tahoe Queen and Tahoe Princess. Business expanded to include ferry service across Lake Tahoe and land shuttle services between South Lake Tahoe and Squaw Valley Ski Resort. Lake Link ferry service was launched across Lake Tahoe, and was the fastest passenger boat on the lake. In 2002 the Lake Tahoe port was sold.

Between 1998 and 1999 Hornblower was the recipient of several awards including; the “Finest Service Award” from the San Diego Convention & Visitors Bureau; the Newport Beach Conference & Visitors Bureau Member of the Year award; and the M/V Hornblower received Entertainment Guide's "Most Fun" Member's Choice Award. Hornblower CEO, Terry MacRae, was named the California Travel Industry Association's "Entrepreneur of the Year" in 1999 and in 2007 he was named Most Admired CEO of the Year by the San Francisco Business Times.

In 2001, the San Francisco Belle, the largest dining yacht on the West Coast with a capacity of 2,200 passengers, joined Hornblower, bringing the fleet total to 30 vessels.

In 2004 Hornblower acquired Adventures At Sea, a luxury fleet based in Orange County. With the addition of these yachts, Hornblower became the largest fleet of private yachts in Southern California.

In 2005, Respect Our Planet, a company-wide environmental education and awareness program was launched. Through this initiative Hornblower educates visitors about reducing the impact on the environment in all the ports we serve. Respect Our Planet has been the backbone for a company-wide environmental, guest service and management accountability program.

In the fall of 2006, Alcatraz Cruises, a subsidiary of Hornblower Yachts, Inc., began a ten year long contract to provide exclusive transportation services to Alcatraz Island, one of the most popular destinations in the National Park Service. In 2008, Alcatraz Cruises was named a Green Business of the Year by the San Francisco Business Times.

In 2007 Statue Cruises successfully bid on the National Park Service contract to provide reservations and ferry transportation to the Statue of Liberty National Monument and Ellis Island Immigration Museum. Operations began on January 1, 2008 and are expected to ferry 4.5 million people to the islands in the first year of operations.