Cruise Giant Expands Into Luxury Resorts
Royal Caribbean Group has agreed to acquire a 50% stake in Sandals Resorts International for approximately $3 billion, marking a major expansion beyond the cruise industry and into land-based vacations.
The transaction will bring Sandals and Beaches Resorts into a joint venture with Royal Caribbean, giving the cruise company access to a major portfolio of all-inclusive Caribbean resorts.
The deal is expected to close in early 2027, subject to customary approvals and closing conditions.
Sandals Adds 20 Resorts to the Portfolio
Sandals operates 20 resorts across the Caribbean under the Sandals and Beaches brands.
Its properties span destinations including Jamaica, the Bahamas, Saint Lucia, Grenada and Barbados. Sandals focuses primarily on adults-only all-inclusive vacations, while Beaches Resorts caters to families.
The acquisition gives Royal Caribbean a significant presence in a travel category that complements its existing cruise business.
Royal Caribbean Wants a Larger Share of Travel Spending
The investment is part of Royal Caribbean’s broader strategy to capture more of consumers’ vacation spending beyond traditional cruises.
The company has been expanding its land-based offerings through private destinations such as Royal Beach Club and Perfect Day.
Adding established resort brands gives the company another way to reach travelers who may prefer staying at a resort rather than taking a cruise.
A $3 Billion Investment Creates a New Joint Venture
Royal Caribbean will invest approximately $3 billion for its 50% equity interest in Sandals and Beaches Resorts.
The company has secured committed debt financing from Morgan Stanley to fund the transaction. The investment represents a forward EBITDA multiple of approximately 10 times, according to the companies.
The deal could value Sandals at more than $6 billion, according to earlier reporting cited in the announcement.
The Stewart Family Will Remain Closely Involved
Sandals was founded in 1981 by the late Gordon “Butch” Stewart, who built the company into one of the Caribbean’s best-known resort businesses.
His son, Adam Stewart, currently serves as executive chairman and will continue in that role after the partnership.
The joint venture will be governed by a board jointly led by Adam Stewart and Royal Caribbean Group Chairman and CEO Jason Liberty.
Sandals Has Long Been a Potential Acquisition Target
Sandals has attracted interest from potential buyers for years.
Speculation about a possible sale dates back nearly a decade. The company had previously explored strategic alternatives, including a potential sale, as it considered ways to support its future growth.
The new partnership provides Sandals with access to Royal Caribbean’s financial resources, customer base and broader vacation platform.
The Deal Connects Cruises and Resorts
The partnership could allow the two businesses to connect different parts of the vacation journey.
Royal Caribbean already operates cruise brands including Royal Caribbean, Celebrity Cruises and Silversea, while Sandals brings an established network of land-based Caribbean resorts.
The companies can now explore ways to broaden distribution and make it easier for travelers to discover both cruise and resort experiences through a connected vacation ecosystem.
Caribbean Tourism Becomes Even More Important
The transaction also strengthens Royal Caribbean’s position in the Caribbean, one of the company’s most important geographic markets.
Sandals brings decades of experience operating resorts across the region, while Royal Caribbean contributes a global vacation platform and substantial customer reach.
For Sandals, the partnership provides additional resources to accelerate resort expansion and develop its brands across new destinations.
The Partnership Goes Beyond a Simple Acquisition
Royal Caribbean is not taking full ownership of Sandals. Instead, the 50-50 structure creates a joint venture that keeps the Stewart family’s leadership involved while giving Royal Caribbean a significant role in the company’s future.
Existing resort operations, reservations and loyalty programs are expected to continue as usual during the transition.
This structure allows both sides to combine their strengths while maintaining continuity for customers and employees.
A Broader Bet on the Global Vacation Market
The Sandals investment reflects a wider transformation in how major travel companies view the vacation industry.
Cruise operators are increasingly looking beyond individual voyages and toward broader vacation ecosystems that can capture spending before, during and after a trip.
With cruises, private destinations, resorts and other experiences becoming part of a connected portfolio, Royal Caribbean is positioning itself across more stages of the travel market.
The $3 billion Sandals deal therefore represents more than an investment in Caribbean resorts. It marks Royal Caribbean’s effort to build a broader vacation business in which cruises and land-based experiences operate as complementary parts of the same global travel platform.
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