Royal Caribbean Group buys 50% stake in Sandals Resorts for US$3 billion
Key Points(5)
- Royal Caribbean Group is moving into the all-inclusive resort business with an agreement to acquire a 50% equity stake in Sandals and Beaches Resorts for approximately US$3 billion.
- The deal will create a joint venture between the two companies, bringing together Sandals and Beaches' more than four decades of experience in Caribbean hospitality with Royal Caribbean Group's cruise and vacation businesses.
- Royal Caribbean Group operates Royal Caribbean, Celebrity Cruises and Silversea, along with a portfolio of private destinations and a new river cruise business.
- The companies said the partnership will include Sandals and Beaches' collection of all-inclusive resorts across the Caribbean and will provide opportunities to expand the brands' reach and accelerate their growth.
- For Royal Caribbean Group, the deal also expands its business into another part of the global vacation market.
Royal Caribbean Group is moving into the all-inclusive resort business with an agreement to acquire a 50% equity stake in Sandals and Beaches Resorts for approximately US$3 billion.
The deal will create a joint venture between the two companies, bringing together Sandals and Beaches' more than four decades of experience in Caribbean hospitality with Royal Caribbean Group's cruise and vacation businesses.
Royal Caribbean Group operates Royal Caribbean, Celebrity Cruises and Silversea, along with a portfolio of private destinations and a new river cruise business.
The companies said the partnership will include Sandals and Beaches' collection of all-inclusive resorts across the Caribbean and will provide opportunities to expand the brands' reach and accelerate their growth.
For Royal Caribbean Group, the deal also expands its business into another part of the global vacation market.
Jason Liberty, chairman and CEO of Royal Caribbean Group, said the agreement builds on the company's efforts to expand the ways it serves travelers.
“We have been building a vacation platform that brings joy to millions of people around the world and creates meaningful relationships that last with our guests,” Liberty said.
“Our partnership with Sandals and Beaches Resorts is an important next step on that journey — bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world.”
Sandals Executive Chairman Adam Stewart said the agreement builds on the vision of his father, company founder Gordon “Butch” Stewart, who established Sandals in Jamaica in 1981.
“My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality,” Adam Stewart said.
“Today is proof of how far that vision can go.”
Stewart said the deal will give Sandals the ability to grow faster while working with a partner that shares its focus on hospitality, long-term investment and established brands.
“Together, we will introduce more guests to Sandals and Beaches Resorts while creating even more extraordinary experiences for those who have made our resorts part of their lives for decades,” he said.
Stewart will retain a leadership role as executive chairman of Sandals and Beaches Resorts and will help guide the company's long-term strategic growth.
The joint venture will be governed by a board under the shared leadership of Stewart and Liberty.
Existing reservations, loyalty programs and resort operations will continue as usual, the companies said.
The US$3 billion transaction represents a forward EBITDA multiple of approximately 10 times. Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment.
The deal is expected to close in early 2027, subject to customary approvals and other closing conditions. Royal Caribbean Group said the transaction is expected to be accretive to its earnings next year.
The partnership will also explore opportunities to broaden distribution and deepen engagement with travelers across the two companies' vacation offerings.
For Sandals, Stewart said the expansion would not change the company's focus on its Caribbean roots.
“As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations while creating opportunities for our team members, travel advisor partners and the communities we call home,” he said.
The deal brings two major tourism companies with deep Caribbean ties into a single ownership structure, linking Royal Caribbean Group's cruise and private-destination operations with Sandals and Beaches' land-based all-inclusive resorts.
