Port of Seattle Inks 15-Year Lease Deal with Norwegian Cruise Line Holdings
- Business & Finance
The Port of Seattle signed a 15-year lease with Norwegian Cruise Line Holdings (NCLH), parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, to serve as a homeport for the company’s cruise ships sailing to Alaska.
The deal secures NCLH’s ships in Seattle for the full term of the lease and provides passenger volume guarantees estimated to bring USD 73 million dollars of revenue to the port.
”This is a historic deal for the Port of Seattle,” said Port of Seattle CEO Ted Fick. ”A 15-year lease for a cruise terminal is unprecedented on the West Coast. Norwegian Cruise Line is showing real vision by investing in the economic growth of this region.”
In addition to the lease, NCLH will make tenant improvements to the Bell Street Cruise Terminal estimated at USD 30 million, expanding the portion of the P66 facilities used for processing cruise passengers.
Under the new lease, NCLH will manage the cruise operations at P66 and will have priority rights to the cruise vessel berth during the cruise season.
The port will operate the facilities outside the cruise season. The capital investment to complete the terminal improvements will be shared between the port and NCLH.
”Alaska is a favorite cruise destination for guests on all three of our brands and Seattle, with its incredible culinary offerings, luxurious accommodations and outstanding attractions, makes for an ideal homeport,” said Frank Del Rio, chief executive officer for Norwegian Cruise Line Holdings Ltd.
”With primary use of the world-class facilities at Pier 66, we can further customize our guests’ pre- and post-cruise experience and better align it with the superior service levels offered by our three award-winning brands.”
The agreement also includes language that will establish a Project Labor Agreement (PLA) between the tenant’s general contractor and the building trades.