Friday 9th October 2026
Royal Caribbean Group has agreed to acquire a 50% stake in Sandals Resorts International for US$3bn, creating a major Caribbean tourism joint venture linking cruise and all-inclusive resort businesses.
The transaction, announced on 23 September, will give Royal Caribbean exposure to Sandals and Beaches Resorts’ 20-property portfolio across Jamaica, The Bahamas, St Lucia, Grenada, Barbados and other Caribbean destinations. The deal is expected to close in early 2027, subject to regulatory approvals and customary conditions.
The agreement values Sandals at more than US$6bn, according to reports cited by Reuters, and represents a forward EBITDA multiple of about 10 times. Royal Caribbean said the investment is expected to be accretive to earnings next year.
Royal Caribbean Chairman and CEO Jason Liberty said the transaction advances the group’s strategy of broadening its vacation offerings beyond cruises. “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,” he added.
Royal Caribbean already operates Royal Caribbean International, Celebrity Cruises and Silversea, alongside private destinations and a developing river-cruise business. The Sandals investment extends that strategy into land-based all-inclusive vacations and could allow the group to capture a larger share of travellers’ spending across cruises, resorts and destination experiences.
Sandals Executive Chairman Adam Stewart will remain in his role and continue overseeing the long-term growth strategy of the Sandals and Beaches brands. The joint venture will be governed by a board under the shared leadership of Stewart and Liberty.
Stewart said the transaction represented a major milestone for the company founded in Jamaica by his father 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… Today is proof of how far that vision can go,” he said.
Stewart argued the partnership would enable Sandals to accelerate growth while retaining its Caribbean identity. “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. Existing bookings, loyalty programmes and resort operations are expected to continue without disruption.
Royal Caribbean has secured committed debt financing from Morgan Stanley to fund the US$3bn investment. Bloomberg reported on 7 October that Morgan Stanley was seeking other banks to purchase portions of the financing. The 364-day loan carries an interest rate of 1.125 percentage points above the Secured Overnight Financing Rate and is expected eventually to be replaced with longer-term debt, potentially including bonds.
The financing underscores the scale of the transaction. For Sandals, the partnership provides access to Royal Caribbean’s global customer base, distribution network and financial resources while preserving the existing leadership structure.
The companies are also expected to explore cross-selling, broader distribution and deeper engagement across their respective vacation businesses. That could give Royal Caribbean access to travellers who favour all-inclusive resort stays, while introducing Sandals and Beaches to more of the cruise group’s international customers.
Stewart said future growth would not change Sandals’ regional focus. “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 creates one of the Caribbean tourism sector’s most significant ownership partnerships in recent years, linking Royal Caribbean’s cruise, private-island and destination businesses with Sandals’ established resort network and providing both companies with a larger platform for expansion across the global vacation market.
Source: Caribbean Insight – Volume 48, Issue 18