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.

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NCLH: Hurricane Relief Underway; Breakaway to Deliver Key Supplies

Norwegian Breakaway

Norwegian Cruise Line Holdings today announced the relaunch of Hope Starts Here, the company’s hurricane relief campaign in partnership with All Hands and Hearts, and pledged a minimum commitment of $1 million toward immediate short-term relief for those affected by Hurricane Dorian, according to a prepared statement.

The company has also vowed to match donations dollar-for-dollar to assist with rebuilding efforts across the Bahamas, including debris cleanup and removal, and the delivery of supplies and temporary shelters.

“Our hearts are heavy after witnessing the impact and devastation caused by Hurricane Dorian across the Bahamas,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings. “We have been cruising to these islands for over 50 years and remain committed to its wonderful people during this unprecedented event. Through our partnership with All Hands and Hearts, we vow to match all donations collected to support the country’s rebuilding efforts.”

Norwegian Cruise Line Holdings is also coordinating with local Bahamian authorities to bring needed provisions to the affected areas, as quickly and as humanly possible. On Sept. 5, Norwegian Breakaway will depart Miami with hurricane relief supplies donated by Norwegian Cruise Line Holdings and its employees, in addition to items collected by the City of Miami, Baptist Health South Florida, the 305 Gives Back foundation, and other Miami-based organizations, to be delivered to Nassau, Great Harbor Cay, the company’s private island Great Stirrup Cay, Bahamas.

“We are pleased and humbled to again partner with Norwegian Cruise Line Holdings, to bring both immediate and long-term support to those who have so tragically suffered from Hurricane Dorian in the Bahamas,” said Erik Dyson, chief executive officer of All Hands and Hearts. “We partnered, after Hurricanes Irma and Maria, to help respond to and rebuild communities in Key West, St. Thomas, Tortola, Puerto Rico, and Dominica – this resulted in helping literally tens of thousands of people moving forward on their path to recovery. We look forward to continuing this joint impact working with and for the people of the Bahamas.”

Without Cuba cruises, Royal Caribbean lowers profit outlook

Harmony of the Seas

Royal Caribbean Cruises Ltd. said eliminating Cuba from the itinerary of various sailings will reduce 2019 earnings by $52 million to $73 million.

“While the affected sailings impact only 3% of our 2019 capacity, the extremely short notice period for this high-yielding destination amplifies the earnings impact,” said Jason T. Liberty, executive vice president and CFO. “The result of this policy change has created a short-term impact on our guests, operations and earnings; fortunately, we have many alternative and attractive destinations for our guests to choose from.”

The other major cruise companies affected by the decision to ban U.S. cruises to Cuba haven’t commented on the financial impact.

Cuba accounts for 1% of capacity at Carnival Corp. and 4% at Norwegian Cruise Line Holdings, according to a note from Wells Fargo Securities, which estimated the economic impact on Carnival at $21 million to $42 million and on Norwegian at $26 million to $60 million.