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Norwegian Unveils Expansion and Private Island Development

Tue, Apr 09, 2024 at 10:41AM

Norwegian Unveils Expansion and Private Island Development

Norwegian Cruise Line Holdings Ltd. unveiled the most comprehensive new build order in its history. The plan includes a total of eight state-of-the-art vessels, representing nearly 25,000 additional berths, with new classes of ships for each of its three award-winning brands and the construction of a multi-ship pier at Great Stirrup Cay, the company’s private island destination in the Bahamas and its top-rated Caribbean port of call. This decade-long strategy will enhance its product offering, guest experiences, and operational infrastructure.

The new ship orders across all three brands are scheduled for delivery over a ten-year period, between 2026 and 2036. Following the delivery of four Prima-Plus class ships from 2025 through 2028, Norwegian Cruise Line is expected to take delivery of four 200,000-gross-ton ships, each with a capacity of nearly 5,000 guests. Building on the success of its Allura Class ships, the last one being delivered in 2025, Oceania Cruises, is scheduled to take delivery of two 86,000-gross-ton ships, each with a capacity of 1,450 guests in 2027 and 2029. Lastly, following the award-winning Explorer Class ships, Regent Seven Seas Cruises is scheduled to take delivery of two 77,000-gross-ton ships, each with a capacity of 850 guests, in 2026 and 2029. Details regarding the ships’ amenities, staterooms, dining, recreational, efficiency, sustainability and other features will be announced in the coming months.

In partnership with the Italian shipbuilder Fincantieri, each brand will design their new ship class and focus on creating the largest, most efficient, and innovative vessels of their respective fleet. Aligning with the company’s sustainability efforts, the new ship designs are expected to advance the journey toward decarbonization.

Mark A. Kempa, chief financial officer of Norwegian Cruise Line Holdings, commented, “we expect that these strategic investments will secure our growth trajectory, significantly boost our earnings profile, and enhance shareholder value well into the future. With a favorable payment structure that includes pre-delivery financing and modest initial installment payments for these ship orders, we still anticipate strong Net Leverage reduction of 1.5 turns by the end of 2024, relative to 2023, and expect the company to continue reducing Net Leverage each year for the foreseeable future.”

New Pier Development at Great Stirrup Cay

The new pier development at the company’s private island in the Bahamas, Great Stirrup Cay, is slated to break ground in summer 2024 and be completed by late 2025 with an investment of $150 million. The new pier will be constructed to simultaneously accommodate two large vessels of the company’s current and future ship classes. The pier development will enhance the guest experience on Great Stirrup Cay, and along with Harvest Caye, Norwegian’s private island in Belize, continue to provide guests with world-class destinations in the Eastern and Western Caribbean.

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