Royal Caribbean Group has agreed to acquire a 50% equity stake in Sandals and Beaches Resorts for approximately $3 billion, marking a major expansion beyond cruises and into the all-inclusive resort industry.
The companies announced the agreement Wednesday, creating a joint venture that combines Royal Caribbean’s cruise and private-destination network with Sandals’ portfolio of Caribbean resorts. The transaction is expected to close in early 2027, subject to customary regulatory approvals and closing conditions.
Royal Caribbean Expands Beyond Cruises
The investment represents one of Royal Caribbean’s biggest moves yet to transform itself from a traditional cruise operator into a broader vacation company. Its portfolio already includes Royal Caribbean International, Celebrity Cruises and Silversea, alongside a growing collection of private destinations and a planned river-cruise business.
Sandals gives the company immediate access to the all-inclusive resort segment. Founded by Gordon “Butch” Stewart in 1981, Sandals operates properties across Jamaica, the Bahamas, Saint Lucia, Grenada, Barbados and other Caribbean destinations under the Sandals and Beaches brands.
Royal Caribbean said the transaction represents a forward EBITDA multiple of approximately 10 times. The company has secured committed debt financing from Morgan Stanley to fund the investment and expects the deal to contribute positively to earnings next year.
The Financial Times previously reported that the transaction could value the Sandals business at more than $6 billion.
Sandals and Beaches Will Continue Operating
Despite Royal Caribbean acquiring half of the business, the companies are not planning an immediate integration of their existing operations.
Current Sandals and Beaches reservations will remain unchanged, while existing loyalty programs, resort operations and Royal Caribbean’s cruise operations will continue as usual. The companies instead plan to use the partnership to broaden distribution, deepen customer engagement and accelerate the expansion of the resort portfolio.
The joint venture will be overseen by a board under the shared leadership of Royal Caribbean Chairman and CEO Jason Liberty and Sandals Executive Chairman Adam Stewart. Stewart will retain his executive chairman role and continue guiding the long-term growth strategy for Sandals and Beaches.
For travelers, the partnership could eventually create more opportunities to move between Royal Caribbean’s cruises, private destinations and Sandals’ land-based resorts, although the companies have not yet announced specific bundled products.
A Bet on the $2 Trillion Vacation Market
Royal Caribbean said the transaction expands its presence in what it estimates is an approximately $2 trillion global vacation market.
That strategy reflects a broader effort by cruise companies to capture more customer spending outside the ship itself. Royal Caribbean has already invested heavily in destinations such as its Perfect Day properties and Royal Beach Clubs, allowing the company to control more of the guest experience before and during cruises.
Sandals takes that strategy significantly further by giving Royal Caribbean direct exposure to travelers who may prefer traditional resort vacations rather than cruises.
The companies also see opportunities to accelerate the development of additional Sandals and Beaches properties. Royal Caribbean brings substantial capital, distribution and a large existing customer base, while Sandals contributes more than four decades of experience operating luxury all-inclusive resorts in the Caribbean.
Royal Caribbean Makes a Major Land-Based Bet
The $3 billion investment changes the scale of Royal Caribbean’s push beyond the cruise industry. Instead of building an all-inclusive resort operation entirely from scratch, the company is buying into one of the Caribbean’s most established hospitality brands.
Sandals, meanwhile, gains a partner with significant financial resources and a global vacation distribution network that could help accelerate its expansion.
The two companies will continue operating their existing businesses independently for now, making the immediate impact on customers limited. Longer term, however, the transaction could create a much broader ecosystem spanning cruises, private islands, beach clubs and all-inclusive resorts.
For Royal Caribbean, that makes the Sandals partnership more than a resort investment. It represents another major step toward competing for a larger share of travelers’ total vacation spending, whether those customers choose to spend their holiday at sea or on land.
