Norwegian Cruise Line Wins Key Juneau Property Bid

Norwegian Bliss

According to media reports in Alaska, Norwegian Cruise Line Holdings was the winning bidder for the “Subport” property in Juneau Alaska, located on Egan Drive on the waterfront.

Norwegian was said to be the highest bidder, offering $20 million over Royal Caribbean’s $13 million. Other bids included Godspeed Inc. at $12,8 million, Survey Point Holdings Inc. at $5.255 million and the City of Juneau at $4.25 million.

“I think it’s fair to say that that’s a fairly shocking bid,” said Juneau City Manager Rorie Watt, via KTOO Media. “I don’t know that I’ve ever seen a property sell for six times the appraised value.”

The piece of property is 2.9 acres and will allow its owner to help expand Juneau’s tourism area and take pressures off the downtown on busy cruise days.

According to KINY Radio, the property is not zoned for a cruise ship dock.

Norwegian has a 15-day window to submit a deposit and complete the purchase agreement.

Of note, Norwegian increased its Alaska capacity some 15 per cent in 2018 with the new Norwegian Bliss, while ticket pricing increased 25 per cent. This summer capacity is up again as the Joy has moved into the market and has been a strong performer.