PHOTO: The Norwegian Getaway in Miami. (Courtesy of Norwegian Cruise Line)
Last week, Wells Fargo financial analyst Tim Conder wondered what is going on at Norwegian Cruise Line Holdings (NCLH) after CEO Kevin Sheehan was abruptly replaced by Frank Del Rio. After a conversation with Del Rio and CFO Wendy Beck, Conder issued an update.
Conder said it now appears that Sheehan's decision to depart "was NOT" - emphasis by Conder - initiated by ownership group Apollo Management. It was not due to "a rift within the executive team" due to hires, strategic direction or cost approach to the integration of Prestige Cruise Holdings, which was purchased by NCLH in November. Del Rio had been CEO of Prestige, which operates Oceania Cruises and Regent Seven Seas Cruises.
"We were led to believe that Sheehan had something from a personal perspective that had changed in the last three months leading to his decision to leave the company ahead of the first five years post-NCLH's IPO," Conder wrote.
He rated NCLH "outperform" and expects the company to host an analyst meeting in New York on Feb. 19 or 20 when management will provide an update on the collective Norwegian/Prestige strategy, update guidance and formally introduce Drew Madsen, the new president of the Norwegian Cruise Line brand, to the financial community.
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