Royal Caribbean to Acquire 50% Stake in Sandals Resorts for $3 Billion

Royal Caribbean Group announced it will acquire a 50% stake in Sandals and Beaches Resorts for approximately $3 billion, a strategic move that significantly expands the cruise giant's footprint into the land-based, all-inclusive resort market.

The companies confirmed the deal on Wednesday, stating it will create a new joint venture combining the Caribbean resort portfolio of Sandals with Royal Caribbean's extensive cruise, private destination, and vacation businesses.

Deal Structure and Rationale

Royal Caribbean said the transaction values the resort business at roughly 10 times forward earnings before interest, taxes, depreciation, and amortization (EBITDA). The partnership aims to accelerate the expansion of the Sandals and Beaches brands while broadening distribution channels for both companies.

This strategic alignment is designed to allow customers to access a wider range of vacation experiences across the combined cruise and resort portfolios. The investment represents a significant diversification for Royal Caribbean, pushing the company into the lucrative all-inclusive land-based vacation sector.

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Financial and Leadership Details

To fund the acquisition, Royal Caribbean has secured committed debt financing from Morgan Stanley. The deal is projected to be accretive to Royal Caribbean's earnings next year, according to the company.

The transaction is expected to close in early 2027, pending regulatory approvals and other customary closing conditions. Sandals Executive Chairman Adam Stewart will continue in a leadership role within the joint venture, alongside Royal Caribbean Chief Executive Jason Liberty.