Royal Caribbean to Acquire 50% Stake in Sandals and Beaches Resorts for $3 Billion

The $3 billion deal will create a joint venture combining Sandals and Beaches’ Caribbean resort portfolio with Royal Caribbean’s global cruise and vacation operations, with Adam Stewart retaining a leadership role in the new venture

Sandals and Royal Caribbean announce $3 billion joint venture

Royal Caribbean Group has agreed to acquire a 50% stake in Sandals and Beaches Resorts for approximately $3 billion, marking a major expansion for the cruise giant into the all-inclusive resort market.

The companies announced Wednesday that the investment will create a joint venture combining Sandals and Beaches’ Caribbean resort portfolio with Royal Caribbean’s cruise, private destination and vacation operations.

According to Royal Caribbean, the transaction values the resort business at approximately 10 times forward earnings before interest, taxes, depreciation and amortization (EBITDA).

Royal Caribbean has secured committed debt financing from Morgan Stanley to fund the acquisition, with the transaction expected to close in early 2027, subject to regulatory approvals and other customary closing conditions.

“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,” said Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts.

Stewart will retain a leadership role in the joint venture following completion of the transaction and will work alongside Royal Caribbean Chief Executive Jason Liberty as the companies develop the partnership.

The joint venture will expand Royal Caribbean Group into another segment of the approximately $2 trillion global vacation market, while accelerating the growth of Sandals and Beaches Resorts.

The partnership will include Sandals and Beaches’ collection of all-inclusive properties across the Caribbean, with both companies exploring opportunities to broaden distribution, deepen guest engagement and make it easier for travelers to access vacation experiences across both portfolios.

Royal Caribbean said it expects the investment to contribute to earnings next year, although the company did not provide further details on the anticipated financial contribution.