Royal Caribbean Announces New Beach Club in Cozumel

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Royal Caribbean International has announced a new beach club: the Royal Beach Club Cozumel in Mexico, opening in 2026.

At the future location of the beach club along the western coast of the island, Royal Caribbean Group President and CEO Jason Liberty and Royal Caribbean International President and CEO Michael Bayley revealed plans for the next experience in the Royal Beach Club Collection while alongside the Secretary of Tourism of Quintana Roo in Mexico, Bernardo Cueto Riestra, and the mayor of Cozumel, Juanita Alonso.

“We are delighted to build on our longstanding partnership with the local community and government to continue bringing our guests to Mexico,” said Jason Liberty, president and CEO, Royal Caribbean Group. “The expansion of our destination offerings aligns with the growing global demand for the ultimate vacation experiences and enables our guests to connect with the beauty of local cultures and people in the places they visit.”

“The anticipation for what’s next when it comes to Royal Caribbean destinations has only continued to build since we revealed Royal Beach Club Paradise Island in The Bahamas that opens in 2025. Now is the perfect time to announce the next iteration of this collection with Royal Beach Club Cozumel,” said Michael Bayley, president and CEO, Royal Caribbean International. “Cozumel is an incredible destination, and the beach club will perfectly complement all the island has to offer as an experience that combines familiar Royal Caribbean touches with the spirit of Mexico, alongside amenities and activities for every type of vacationer.”

Royal Caribbean said the club would feature “striking beaches, views and pools for every vibe.”

“We are very proud that Royal Caribbean International has chosen Quintana Roo to build Royal Beach Club Cozumel as a new attraction for many of their guests visiting our magical island. My administration will always be committed to partnering and working very closely with the private sector to build modern and sustainable infrastructure and create local jobs for our people. These kinds of projects reaffirm our commitment to continue to be the top port of call in Latin America,” said Mara Lezama, governor of Quintana Roo.

S&P Upgrades Norwegian Cruise Line Credit Rating

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Norwegian Bliss in Ponta Delgarda, Azores photo credit Spacejunkie2 Flickr Account

Norwegian Cruise Line Holdings today announced that S&P Global Ratings (S&P) has recently upgraded NCLC’s (NCL Corporation, a subsidiary of Norwegian Cruise Line Holdings) issuer credit rating and issue-level ratings.

NCLC’s issuer credit rating has been upgraded to B+, marking a notable improvement in the company’s creditworthiness, according to a press release.

In addition, S&P has raised the issue-level ratings on NCLC’s existing secured and unsecured debt. The company’s senior secured debt ratings were raised to BB/BB- and its unsecured debt rating was upgraded two notches to B.

S&P highlighted several factors for the upgrade, including NCLC’s current forward-booked position, increased capacity, occupancy recovery, and higher pricing providing good revenue and cash flow visibility for 2024. In addition, S&P noted that the Company’s leverage will benefit from higher revenue, EBITDA, and cash as it generates a full year of operations from its 2023 ship deliveries, without incurring incremental ship delivery debt in 2024.

Further enhancing its financial position, on March 7, 2024, the company successfully completed the refinancing of its $650 million backstop commitment. This commitment has been refinanced from a secured to an unsecured commitment, and as part of this refinancing, the company has repaid its $250 million 9.75% senior secured notes due 2028, eliminating its highest interest rate debt.

“The upgraded ratings are an important recognition of the strength of our business and our ability to reduce leverage,” commented Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd. He continued, “Our recent refinancing, which reduces interest costs while releasing the related collateral, is a clear demonstration of our commitment to de-levering and improving our balance sheet.”

NCLH: Measured Cruise Capacity Growth at 28%

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A key cornerstone of Norwegian Cruise Line Holdings’ long-term strategy is measured capacity growth, said Harry Sommer, president and CEO, speaking on the company’s year-end and fourth quarter earnings call.

He pointed to the company’s newbuild pipeline of five ships and its 2023 to 2028 capacity growth, which represents 28 more supply for the company’s trio of brands in Norwegian, Oceania and Regent.

That averages out to a compound annual growth rate of five percent, he advised.

“Historically, capacity growth has led to outsized revenue and EBITDA growth and we expect this capacity growth to be no different and deliver meaningful top and bottom line growth,” Sommer noted.

“We believe that these measured capacity additions will enable us to further enhance our long-term profitability and continue to significantly strengthen our balance sheet while providing guests new and innovative experiences,” he said.

“We continue to experience strong and resilient customer demand across all three of our brands. The strong momentum we saw in 2023 has continued into 2024 with an all-time high booked position and pricing buoyed by strong wave season demand. This has led to some of the best booking weeks in the company history, which began with successful Black Friday and Cyber Monday promotions.

“In general, we continue to see healthy demand across all markets, brands and products.”