Royal Caribbean Group to Purchase 50% of Sandals Resorts

Over the past several years, Royal Caribbean Group has stopped positioning itself as a cruise company. “We are a vacation company” is an oft repeated phrase by senior executives.

Now, the company is putting real money behind its claim, finalizing a deal that would see Royal Caribbean Group purchase a 50% stake in Sandals Resorts International, one of the largest all-inclusive hospitality companies in the world.

The acquisition (valued at $3 billion), first reported by Financial Times, would be the largest in Royal Caribbean history, beating Royal’s 2020 acquisition of Silversea ($1 billion).

“The acquisition of 50% equity in Sandals and Beaches Resort, a new joint venture with Sandals Resorts, is a natural next step in Royal Caribbean Group’s evolution as a vacation company,” a spokesperson for Royal Caribbean Group wrote in an email containing the press release confirming the acquisition.

“The partnership builds on the growth strategy Royal Caribbean Group has been executing across our portfolio — expanding how we serve guests across more vacation occasions, from ships and rivers to one-of-a-kind destinations and now all-inclusive resort experiences. Together, these offerings strengthen our vacation ecosystem, create more choice, ease and value for travelers, and deepen our participation in the $2 trillion global vacation market.”

“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,” Liberty added. “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.”

Sandals Resorts International operates 20 all-inclusive properties across the Caribbean under the Sandals and Beaches Resorts brand names. According to Financial Times, the company has been trying to find a buyer even before founder Gordon “Butch” Steward passed away in 2021.

Sandals was previously in talks over a sale in 2017 and 2019, according to reports, and the WSJ said last year that the resort company could sell for between $6 billion to $7 billion.

“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 maintain a leadership role in guiding the company’s long-term strategic growth as executive chairman of Sandals and Beaches Resorts. Existing reservations, loyalty programs, resort operations, and cruise operations will continue as usual, with the partnership bringing additional resources to support future opportunities. 

Under the terms of the agreement, Royal Caribbean Group will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion, representing a forward EBITDA multiple of approximately 10x.  Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment.  The transaction is expected to close in early 2027, subject to customary approvals and closing conditions, and is expected to be accretive to earnings next year.