Royal Caribbean to Acquire 50% Stake in Sandals Resorts

Royal Caribbean Group will acquire a 50% equity stake in Sandals and Beaches Resorts through a $3 billion investment, valuing the Caribbean all-inclusive resort company at $6 billion.

The deal will create a joint venture between Royal Caribbean and family members of Sandals founder Gordon Stewart, who will retain the remaining stake. The transaction is expected to close in early 2027, pending customary approvals and closing conditions.

The deal adds another major component to Royal Caribbean’s growing portfolio of vacation experiences. The company has invested heavily in land-based destinations and experiences like Perfect Day at CocoCay, and its stake in Sandals and Beaches Resorts gives it access to an established collection of all-inclusive properties across the Caribbean.

Adam Stewart, Executive Chairman of Sandals Resorts, will continue to have a leadership role under the new joint venture. The venture’s board will be jointly led by Stewart and Royal Caribbean Group Chairman and CEO Jason Liberty.

“Together, we see tremendous opportunity to expand the reach of Sandals and Beaches Resorts and continue turning the vacation of a lifetime into a lifetime of vacations,” Liberty said in announcing the partnership.

“[This partnership] gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment, and the power of enduring brands,” Stewart added. “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.”

Royal Caribbean will finance its investment through committed debt financing from Morgan Stanley. The company said the $3 billion purchase price represents a forward EBITDA multiple of approximately 10 times.

The companies said existing reservations, loyalty programs, resort operations, and cruise operations will continue as usual following the agreement.