50% Stake in Sandals Resorts Bought by Royal Caribbean

Royal Caribbean Group and Sandals Resorts have announced an agreement to establish a joint venture in the all-inclusive resort market, with Royal Caribbean Group investing approximately $3 billion for a 50% stake in Sandals and Beaches Resorts.

The companies said the partnership will support further expansion of the resort business while adding to the range of vacation experiences available through Royal Caribbean Group’s broader platform.

The deal will take Royal Caribbean Group into an adjacent segment of the travel industry and increase its presence in the approximately $2 trillion global vacation market. At the same time, the partnership is expected to help meet growing international demand for Sandals and Beaches Resorts by accelerating the brands’ expansion.

The joint venture will encompass Sandals and Beaches’ portfolio of all-inclusive resorts across the Caribbean. The two companies also plan to explore ways to expand distribution, strengthen relationships with guests and make it easier for travelers to discover vacation options available across their respective portfolios.

“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. 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.”

Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts, said the agreement builds on the vision established by his father, Gordon “Butch” Stewart.

“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 new venture will be overseen by a board under the shared leadership of Stewart and Liberty. Stewart will continue to play a leadership role in shaping the company’s long-term strategy as Executive Chairman of Sandals and Beaches Resorts.

Existing bookings, loyalty programs and resort operations will continue as normal, as will Royal Caribbean Group’s cruise operations. The companies said the partnership will provide additional resources to support future growth opportunities.

Under the agreement, Royal Caribbean Group’s approximately $3 billion investment for a 50% equity interest represents a forward EBITDA multiple of roughly 10 times. Morgan Stanley has provided committed debt financing to fund the investment.

The transaction is expected to close in early 2027, subject to customary regulatory approvals and other closing conditions. Royal Caribbean Group expects the investment to contribute positively to earnings next year.