Room to Grow: Royal Caribbean-Sandals Deal Comes With 1,000+ Acres

Royal Caribbean Group‘s multibillion-dollar investment in Sandals and Beaches Resorts comes with more than luxury beachfront properties.

It also includes a massive amount of undeveloped Caribbean land that could pave the way for future resort expansion.

More than 1,000 acres of land, to be exact, according to a report in the Jamaica Gleaner.

Royal Caribbean revealed new details about its planned acquisition of a 50 per cent stake in Sandals and Beaches during its third-quarter earnings call Tuesday (Oct. 27), highlighting the significant growth opportunities tied to the deal.

Royal Caribbean CEO Jason Liberty described the land bank as one of the most valuable components of the transaction.

“It’s not stuff that you can just go buy off the shelf. This has been curated, brilliantly, by the Stewart family,” Liberty told investors.

The land includes parcels adjacent to existing Sandals and Beaches properties, along with undeveloped sites that could accommodate entirely new resorts.

“There are other greenfield opportunities on other parcels of land that are inside this land bank,” Liberty said.

A US$3 Billion Investment

Announced September 23, Royal Caribbean’s agreement to acquire a 50 per cent interest in Sandals and Beaches is valued at approximately US$3 billion, giving the resort company an implied valuation of US$6 billion.

The transaction is expected to close in early 2027.

Jamaica remains the company’s largest destination, home to seven operating Sandals and Beaches resorts.

Exactly how much of the undeveloped land is located in Jamaica, and which properties could benefit from future expansion, has not yet been disclosed.

For Royal Caribbean, the investment represents a significant move beyond the cruise business and into the all-inclusive resort market.

As previously reported, the company’s broader strategy is to create an interconnected vacation portfolio that includes ocean cruises, river cruising, private destinations and now luxury all-inclusive resorts.

Royal Caribbean has indicated that Sandals and Beaches will retain their established brand identities, management teams and distinctive Caribbean character under the partnership.

Beyond the Caribbean?

While the immediate priority is growing Sandals and Beaches within the Caribbean, Royal Caribbean isn’t ruling out taking the brands to other parts of the world.

Asked by investors about the possibility of international expansion, Liberty suggested the potential extends well beyond the region where Sandals built its reputation.

“The answer is yes. We think the Sandals brand, the Beaches brand, have great legs to it around the world,” he said.

For now, the focus remains firmly on the Caribbean, where the undeveloped land holdings offer considerable room for future growth.

Another new development involves the possibility of combining cruises with all-inclusive resort vacations.

Liberty previously confirmed that the companies are examining opportunities to connect their respective vacation experiences, particularly through pre- and post-cruise stays.

The company is also looking at ways to make Sandals and Beaches reservations available through its NextCruise desks, allowing passengers to book future all-inclusive vacations while still at sea.

Liberty has emphasized the importance of simplifying the reservation process while ensuring travel partners can still participate in the expanded vacation ecosystem.

Executives have also made clear that Sandals and Beaches resorts will not become day-use destinations for cruise passengers.

Which is significant, given Royal Caribbean’s expanding portfolio of private destinations and beach clubs, including Royal Beach Club Paradise Island in Nassau.

Royal Caribbean Reports Strong Quarter

The additional details emerged as Royal Caribbean reported another strong financial quarter on Tuesday (Oct. 27).

Third-quarter revenue climbed nine per cent to US$5.6 billion, while net income increased to US$1.7 billion, compared with US$1.6 billion during the same period last year.

Adjusted earnings reached US$6.57 per share, exceeding company guidance.

Royal Caribbean also raised its full-year adjusted earnings forecast to between US$17.85 and US$17.95 per share.