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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Norwegian Cruise Line boss nets $1.3m in the share sale

Image result for andy stewart nCL

Norwegian Cruise Line boss Andy Stuart netted $1.3 million from the sale of shares.

He sold 25,000 shares in parent company Norwegian Cruise Line Holdings in two tranches last week, according to a filing with the US Securities and Exchange Commission.

The sale at $50 per share came after the company reported record second-quarter financial results with earnings of $240.2 million for the three months to June 30.

The lift in profits came despite the impact of the abrupt US government ban on cruise ships calling into Cuba and a technical problem with the ship Norwegian Pearl which forced one cruise to be amended and another to be canceled.

Company president and CEO Frank Del Rio said at the time: “The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings.”

NCLH has a market capitalization of $10.88 billion and controls NCL alongside Oceania and Regent Seven Seas Cruises.

Cruise Companies Pursue Different Brand Growth Strategies

Carnival Horizon and Mein Schiff 6

The multi-brand cruise companies will continue to grow their largest and most popular brands, but individual brand growth may surprise, according to the 2019 Cruise Industry News Annual Report.

While Carnival Cruise Line brand will continue to be the dominant brand for Carnival Corporation over the next decade, carrying twice as many passengers as the second-largest brand, Costa Crociere will see the most capacity growth over the same time period, driven partially by its short cruises in China.

AIDA will be third in terms of capacity growth, followed by Princess Cruises.

Altogether the Carnival brands will grow their passenger capacity from an estimated 12 million (double occupancy) in 2019 to some 16 million in 2027, barring any ship withdrawals and deployment changes.

At Royal Caribbean Cruises, the Royal Caribbean brand will also continue to dominate and could be the single largest brand in the world by 2027, growing by an estimated 1.2 million passengers, twice the projected capacity growth for the Carnival brand over the same time period. TUI Cruises, which is 50 per cent owned by Royal Caribbean, will also see significant growth. However, Celebrity, which will see less growth over the same time period, will remain the second-largest brand at Royal Caribbean. The total capacity for the Royal Caribbean brands is forecast to grow to about 9 million.

MSC Cruises will move up to become the third-largest cruise company with the most capacity growth of any brand, from an estimated 2.4 million in 2019 to nearly 5 million by 2027.

Norwegian Cruise Line Holdings moves to fourth place, however, the Norwegian Cruise Line brand will see the second largest passenger capacity increase. Total capacity for the three Norwegian brands is estimated at 3.7 million in the nine-year forecast.

Genting will also see significant relative growth and remains the fifth largest cruise operator.