Former Norwegian Chairman Readies $1 Billion for Condos at Sea
Russell Galbut, managing principal of developer Crescent Heights, struck a $230 million deal with Norwegian Cruise Line Holdings Ltd. for a long-term lease on his first ship. Galbut said he intends upgrade the vessel, known as the Seven Seas Navigator, and sell berths to customers who'd want to live on the ship for extended periods of time.
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Yahoo
26-06-2025
- Yahoo
Norwegian Cruise Line Stock: Is NCLH Underperforming the Consumer Discretionary Sector?
Norwegian Cruise Line Holdings Ltd. (NCLH), headquartered in Miami, Florida, provides cruise travel services. Valued at $8.7 billion by market cap, the company offers cruise itineraries and theme cruises, and markets its services through various distribution channels including retail and travel agents, international and incentive sales, and consumer direct. Companies worth $2 billion or more are generally described as 'mid-cap stocks,' and NCLH perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the travel services industry. NCLH's significant revenue is driven by strong passenger ticket sales and onboard activities. The company is poised for further growth with 13 new vessels on order, increasing capacity by 41,000 berths through 2036. NCLH's robust liquidity position and prudent financial management enable it to invest in growth initiatives and navigate market fluctuations. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? 1 Dividend Stock to Buy Yielding Over 7% Up 93% in 2025, Palantir Stock Is Too Hot to Handle Here Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Despite its notable strength, NCLH slipped 35.1% from its 52-week high of $29.29, achieved on Jan. 31. Over the past three months, NCLH stock declined 7.1%, underperforming the Consumer Discretionary Select Sector SPDR Fund's (XLY) 3.5% gains during the same time frame. In the longer term, shares of NCLH dipped 26.1% on a YTD basis but climbed 4% over the past 52 weeks, underperforming XLY's YTD 5% losses and 17.9% returns over the last year. To confirm the bearish trend, NCLH has been trading below its 200-day moving average since early March. However, the stock is trading above its 50-day moving average since mid-May, with slight fluctuations. On Apr. 30, NCLH shares closed down more than 7% after reporting its Q1 results. Its adjusted EPS of $0.07 did not meet Wall Street expectations of $0.09. The company's revenue was $2.1 billion, missing Wall Street forecasts of $2.2 billion. The company expects full-year adjusted EPS to be $2.05. In the competitive arena of travel services, Royal Caribbean Cruises Ltd. (RCL) has taken the lead over NCLH, showing resilience with 23.3% gains on a YTD basis and 76.9% returns over the past 52 weeks. Wall Street analysts are moderately bullish on NCLH's prospects. The stock has a consensus 'Moderate Buy' rating from the 22 analysts covering it, and the mean price target of $24.50 suggests a potential upside of 28.8% from current price levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Forbes
25-06-2025
- Forbes
Would You Buy A Luxury Residence To Live On A Cruise Ship For Life?
The passenger cruise ship Seven Seas Navigator arrives at the French Mediterranean port of ... More Marseille. In 2026, the Navigator will be refitted as a luxury residence, with 210 cabins and suites for sale. (Photo by Gerard Bottino/SOPA Images/LightRocket via Getty Images) What's your dream second home? Or, for that matter, primary residence? Crescent Seas is betting that for 210 people, their dream getaway place will be on a cruise ship sailing the seven seas. The cruise ship Seven Seas Navigator will depart the Regent Seven Seas Cruises fleet (a division of Norwegian Cruise Lines) in late 2026, to be refitted and modernized as a luxury 'condo at sea.' The Navigator, which currently accommodates 490 guests in 255 cabins, will be redesigned and remodeled with 210 high-end residences. The residences start with 98 371-square-foot efficiencies, selling for between $1.25 million and $1.5 million. The other units are all suites, with 12 different designs, priced by square footage. The largest unit will be approximately 2000 square feet with a 600 square foot balcony. The largest units will sell for between $5 million to $8.5 million, according to CEO Russell Galbut, or around $3400 per square foot. He says, 'True luxury is obtainable. It's like having 210 private yachts within a 550-foot ship.' Like condominiums or coops with a homeowners association fee (HOA) the residences on the updated Navigator will have a maintenance or cost of operations fee. Galbut says the fee will start at around $20,000 per month for smaller units. Owners can rent their suites for up to six months. An artist's rendering of the pickleball court and sauna deck on the upcoming residence at sea on ... More board the renovated luxury residence Navigator. 'We picked this ship because it had physical common space, lots of it, for restaurants, a work center, a conference center, a huge spa, a library, and storage for stuff like scuba diving gear and bicycles to explore destinations. 'Our customers are people who want to discover the world. The ship will stay three days in port, not just for an afternoon. We have laid out itineraries for the next couple of years. Our residents can take their families around the world and successfully home school their children anywhere in the world via satellite communication.' Galbut says the Navigator will be the first of three 'residential ships.' He did not disclose the purchase price, but it has been reported that Crescent Seas acquired Seven Seas Navigator as part of a $230 million deal with Norwegian Cruise Lines.. Crescent Seas recently bought a second ship, the Insignia, which it will acquire in 2027. The third ship, a custom-built vessel, is pegged for 2028. The idea of a residence at sea is not new. The World by Villa Vie Residences has been sailing for 25 years, You can buy a 'villa at sea' and live aboard, or get a short-term rental. An artist's conception of a residence on the upcoming Crescent Seas Navigator residential luxury ... More cruise ship. More recently, I wrote about the Ulyssia, a brand-new ship being built from the ground up as a residence. Galbut says 'Ulyssia is really wonderful, but they don't have a residence under $10 million. Ulyssia has units that are $100 million.' How many people can afford a multimillion dollar second or third home aboard a cruise ship? Perhaps more than you would think. As of 2022, there were 264,000 people in the world with assets of over $50 million, more than half of whom in the U.S. Having built over 300 residential buildings, Mr. Galbut understands this market well. Born and raised in Miami Beach, he says, 'I started building condominiums in Miami in 1975, building homes in the sky. Back then, it took four days to get plans approved—today it would take a year.' He founded Crescent Heights in 1989, with Crescent Seas a recent off-shoot. He says, 'We have a huge organization and a deep bench.' Galbut, 72, has both a law degree and is a certified accountant. He has spent most of his life as a real estate developer. Why switch to the cruise industry now, rather than retire and enjoy the good life? Galbut says, 'I want to spend my time making people happy. What drives me is quality hard work, which I enjoy. So, a new company and a new industry.' Artist's conception of the upcoming billiards room on the Navigator, which is becoming a luxury ... More residential cruise ship. The developer is continuing to work in real estate. I met him at an event promoting both Crescent Seas and Five Park, a new luxury condominium tower. Five Park is said to be the tallest tower in South Beach Miami and the first new one delivered in the last ten years. Co-developed by Russell Galbut and David Martin's Terra Group, Five Park shows off Galbut's penchant for public spaces, such as a co-working space and an on-site members-only social club, The Canopy Club, designed by Anda Andrei. Galbut says, 'We spend on architecture and design We even have our own art curator. The idea behind the designed spaces is to make people feel a part of a community.' Galbut has been involved in the cruise industry for many years, as both a customer and a board member of a major cruise line. 'My wife and I have been cruising for 47 years. We really enjoy it. I was a customer, than an investor. I made an investment in Oceania, which was later bought by Prestige. (Oceania is now a brand of NCL.) When NCL bought Prestige, they asked me to be on the board. For 23 years I was on the board of NCL and was Chairman of the Board for six years.' When the Navigator leaves NCL next year, Crescent Seas will wet lease the ship after it is renovated, with NCL providing the officers and crew, and updating the ship's electronic systems such as radar, navigation, etc. And as Galbut notes, 'Who gets better pricing for fuel than a big cruise line like NCL?' The Apollo Group, a leader in global cruise management and hospitality, will provide food and beverage service. The Canopy Club at Five Park, a new residence in Miami Beach co-developed by Russell Galbut, who is ... More also the principal of Crescent Seas, the operator of luxury residences at sea. In the cruise industry, most of the buzz is about the newest, biggest ships, such as Royal Caribbeans Icon of the Seas, launched in 2024 with a capacity of 7600 passengers and 2350 crew. But as Galbut puts it, 'I don't want to be on a ship with 10,000 people. I want to be on a ship like the Navigator.' Still, the Navigator, built on the hull of a Russian research vessel, originally entered service in 1999, making it one of the oldest in NCL's fleet. These ships have plenty of life left in them, says Galbut 'These ships have great bones. Their made out of many tons of steel. As long as they're maintained, they're fantastic. It's no different than converting an office building that's a hundred years old into a condominium.' But for now, it sounds like Galbut can't wait to get his hands on the Navigator. 'Right now the ship is being used by Regent Seven Seas. In October the last passenger gets off in Cairo. It sails to Genoa for 54 days in dry dock, where 300 people will be working for Crescent Seas, breaking down the ship. Then it sails for Miami in December for the premiere. The finishing crew and the regular crew will be on board. Every suite, every bathroom gets redone, new electric, wall paper, furniture. We expect to be over 50% sold by the end of 2025.' Artist's conception of the Compass Rose dining room aboard the Navigator, a luxury residence at sea ... More slated to sail starting in 2026.
Travel Weekly
31-05-2025
- Travel Weekly
Are residential cruises an opportunity for travel advisors?
A small but intriguing part of the cruise business may be set to grow after another residential cruise company has appeared, promising consumers they can buy a cabin and live year-round at sea. Founders of residential lines said they are optimistic about the success of this sector. They point to cruise lines sailing longer world cruises as a trend in their favor. Improvements in high-speed WiFi and consumers' flexibility in working from home are trends supporting this niche product. But some travel advisors said they are hesitant to sell space on residential cruise lines, noting a lack of trade inclusion in the lines' sales strategies and high-profile but troubled product launches. Several residential cruise lines have carved out a space in the industry. Perhaps the best known is The World, a luxury condominium ship that has been in operation for more than 20 years. The newest brand in the market is Crescent Seas, which was founded by former Norwegian Cruise Line Holdings chairman and real estate developer Russell Galbut. He plans for the line to begin sailing in December 2026 on the Seven Seas Navigator, which will be chartered from Regent Seven Seas Cruises and renamed the Crescent Seas Navigator. Crescent plans to expand the fleet a year later by chartering the Oceania Insignia from Oceania Cruises. Both ships will undergo $50 million refurbishments, and three more vessels could be announced over the next five years, Galbut said. Sales for residences on the Navigator, priced from $750,000 to $8 million opened in April. Condos on the Insignia are priced from $650,000 to $10 million, with sales opening this summer. Another line, Villa Vie, uses a former Fred. Olsen ship and offers the opportunity to buy or rent a cabin or buy a seasonal ownership membership. Other brands are in the works, including Storylines, which is building its own ships. Some launches have been messy and failed. In 2023, Life at Sea Cruises canceled its voyage two weeks before embarkation, saying the purchase of a cruise ship fell through shortly before its sail date, according to media reports. Owned cabins were even part of a model for a planned Crystal Cruises ship, but that version of the line ceased operations before the vessel could be built. Carlos Edery, CEO and co-founder of Luxury Cruise Connections based in Miami Beach, said he has noticed a growing interest from affluent clients in living at sea year-round. Nonetheless, he remains wary. "The recent struggles and delays seen with ventures ... have made us cautious about recommending such investments until we see consistent, successful operational execution," he said. In the case of Crescent Seas, travel advisors are built into the sales structure. They can earn a commission when selling a residence or when booking their clients on shorter-term voyages when residents taking a break from the ship opt to make their cabins available to rent. "There's a lot of logic why a travel agent would want to be involved with us," Galbut said, although he declined to share what the commission rate was. Real estate agents, yacht brokers and private bankers could also sell commissionable space on these ships, he said. Alex Sharpe, CEO of Signature Travel Network, said there is a lot to like about the Crescent Seas project, but he stopped short of saying he envisions selling it. "There are certainly earning opportunities, but at the same time, it is not what a typical travel advisor does, so it would likely be more specialized and, for us, will require more research and deliberation," he said. Dennis Nienkerk, a luxury advisor at Dallas-based Strong Travel Services who worked in commercial real estate for more than 25 years, said he knows people who owned condos on the World, and he would welcome the opportunity to sell units on the Navigator. Villa Vie founder and chairman Mikael Petterson said he was looking to better incorporate advisors in his product to sell world cruise segments on the ship. The Villa Vie Odyssey is 74% booked, which leaves room to sell segments to traditional cruisers, he said. Petterson, who was managing director of Life at Sea Cruises, isn't surprised that another residential cruise line has entered the market. If anything, he's surprised there are not more. "World cruises are getting longer and longer," he said. "The option of living onboard with high-speed WiFi, the flexibility of people working from home -- all these factors come together and make residential cruising that much more feasible." That doesn't mean it is easy. Petterson launched the Odyssey from Belfast, Ireland, in September following a four-month delay due to inspection issues associated with the ship, which sat in dry dock before returning to service. Now Petterson is looking for a second ship, and he said he hopes it will come with a smoother launch. Earlier this year, he said he was "knee-deep" in negotiations for a ship currently in operation that contains no more than 600 cabins.
