Royal Caribbean confirms $3B deal for 50% stake in Sandals and Beaches Resorts

Royal Caribbean Group is expanding into the all-inclusive resort sector through a new partnership with Sandals Resorts that will see the cruise company acquire a 50 per cent equity interest in Sandals and Beaches Resorts.

The companies announced the agreement on Wednesday (Sept. 23), saying the joint venture will support the continued growth of Sandals and Beaches Resorts while expanding Royal Caribbean Group's vacation portfolio.

PAX previously reported that Royal Caribbean Group was nearing a deal to acquire a 50 per cent stake in Sandals Resorts.

Under the terms of the agreement, Royal Caribbean Group will invest approximately US$3 billion for the 50 per cent stake, representing a forward EBITDA multiple of approximately 10x.

The transaction is expected to close in early 2027, subject to customary approvals and closing conditions, and is expected to be accretive to earnings in 2027.

The partnership brings together Sandals and Beaches' portfolio of all-inclusive Caribbean resorts with Royal Caribbean Group's travel brands, which include Royal Caribbean, Celebrity Cruises and Silversea, as well as its private destinations, planned river cruise offering and loyalty program.

The companies said they will explore opportunities to broaden distribution, deepen guest engagement and make it easier for travellers to discover vacation options across both portfolios.

"For nearly 60 years, we've reimagined what a vacation can be, constantly expanding the ways we inspire our guests to explore, connect and create lifelong memories," said Jason Liberty, Chairman and CEO, Royal Caribbean Group. 

"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. 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. The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy. 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."

The deal gives Royal Caribbean Group a foothold in the all-inclusive resort category while bringing additional resources to support the expansion of Sandals and Beaches Resorts.

"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. Today is proof of how far that vision can go," said Adam Stewart, executive chairman of Sandals Resorts and Beaches Resorts. 

"This partnership is the natural next step in building on that conviction. It 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. 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."

Stewart added: "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. The future has never been brighter, and I know this moment would make my father incredibly proud."

The joint venture will be governed by a board under the shared leadership of Stewart and Liberty. 

Stewart will remain executive chairman of Sandals and Beaches Resorts and will continue to help guide the company's long-term strategy.

Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, the companies said.

Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment.

BofA Securities and PJT Partners acted as financial advisors to Sandals Group, while Latham & Watkins and Jones Day served as legal advisors. 

Perella Weinberg Partners and Morgan Stanley acted as financial advisors to Royal Caribbean Group, with Kirkland & Ellis LLP serving as legal advisor.

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