Norwegian Cruise Line Holdings Announces Historic Fleet Expansion

Norwegian Cruise Line is embarking on an unprecedented expansion, with the order of eight state-of-the-art vessels and the construction of a new multi-ship pier at Great Stirrup Cay, its private island in the Bahamas. This bold move is poised to redefine the cruise industry, adding nearly 25,000 additional berths and introducing new ship classes for each of its three renowned brands.

Scheduled for delivery between 2026 and 2036, these state-of-the-art ships will join the fleet following the arrival of four Prima-Plus class ships from 2025 through 2028. Norwegian Cruise Line will welcome four colossal 200,000-gross-ton ships, each boasting a capacity of nearly 5,000 guests. Oceania Cruises will add two 86,000-gross-ton ships, each accommodating 1,450 guests, while Regent Seven Seas Cruises will introduce two 77,000-gross-ton ships, each with a capacity of 850 guests.

Harry Sommer, president and CEO of Norwegian Cruise Line Holdings, highlighted the significance of this development: “This new ship order signifies a milestone for our company, ensuring the continuous introduction of innovative vessels and cementing our growth for the future. Adding a new pier at Great Stirrup Cay will elevate our Caribbean offerings and enhance the guest experience.”

Each brand will craft its new ship class in collaboration with Fincantieri, the renowned Italian shipbuilder. The focus will be on size, efficiency, and innovation, contributing to the company’s sustainability goals and the industry’s decarbonization.

Pierroberto Folgiero, CEO of Fincantieri, expressed excitement about the partnership: “Our relationship with Norwegian Cruise Line Holdings has always been about pushing the boundaries of maritime travel. These new ships will continue our legacy of excellence.”

The company has secured export credit financing to fund a significant portion of the contract price for the Oceania Cruises and Regent Seven Seas Cruises ships. The funding for the Norwegian Cruise Line ships is currently in progress.

Mark A. Kempa, the company’s CFO, has expressed confidence that the strategic investments will secure the company’s growth trajectory and significantly enhance its earnings and shareholder value.

The new pier, representing an investment of approximately $150 million, is expected to break ground in summer 2024 and reach completion by late 2025. Designed to accommodate two large vessels simultaneously, this development is a testament to the company’s commitment to providing exceptional guest experiences and world-class destinations in the Eastern and Western Caribbean.

Kempa, the company’s CFO, underscored the sound financial strategy underpinning the ship orders. This includes a favorable payment structure with pre-delivery financing and manageable initial installment payments. This approach is projected to lead to a substantial Net Leverage reduction of 1.5 turns by the end of 2024, relative to 2023, with further reductions anticipated in the coming years.

The new pier at Great Stirrup Cay, alongside Harvest Caye in Belize, will ensure that guests have seamless and luxurious access to some of the most sought-after destinations in the Caribbean, further cementing Norwegian Cruise Line Holdings’ reputation as a leader in the cruise industry.