Royal Caribbean Group is buying a 50% stake in Sandals and Beaches Resorts for about $3 billion. That values the Caribbean all-inclusive chain at roughly 10 times forward EBITDA. Morgan Stanley has committed the debt financing. The deal is expected to close in early 2027, subject to approvals, and Royal Caribbean expects it to add to earnings that year.
It’s the cruise giant’s first move into land-based resorts, and it lands in the region Royal Caribbean already knows best.
Why the two fit
Royal Caribbean already sells the Caribbean. Its ships call at the same islands where Sandals has resorts, and it has been building its own beach destinations, Perfect Day at CocoCay and the Royal Beach Club collection. What it didn’t have was a place for guests to stay on land. Sandals gets capital to grow faster, plus access to Royal Caribbean’s huge distribution network and guest data.
Jason Liberty, chairman and CEO of Royal Caribbean Group, calls it “an important next step” in bringing together “two iconic leading vacation companies.” Adam Stewart, executive chairman of Sandals and Beaches Resorts, says the partnership is “the natural next step” for the family-founded company.
What changes, and what doesn’t
For now, nothing changes for guests. Bookings, loyalty programs and resort operations continue as before, and Sandals keeps running its own resorts. Stewart stays on as executive chairman, and the two companies will share governance through a joint board.
The long-term plan is cross-selling. Expect cruise-and-resort packages, shared loyalty perks and Sandals stays sold through Royal Caribbean’s channels. Adults-only Sandals resorts are in Jamaica, Antigua, Saint Lucia, the Bahamas, Barbados, Grenada, Curaçao, and Saint Vincent and the Grenadines. Family-focused Beaches has Negril and Turks and Caicos, with new resorts planned in Exuma, Barbados, Runaway Bay and Saint Vincent.
Royal Caribbean puts the global vacation market at around $2 trillion. Cruises are only a small part of that, and this deal is Royal Caribbean going after more of it.