Royal Caribbean to buy 50% stake in Sandals Resorts for $3 billion
Royal Caribbean Group announced Wednesday it will acquire a fifty percent equity stake in Sandals and Beaches Resorts for approximately three billion dollars, valuing the entire resort company at six billion dollars. The two companies will form a joint venture combining Caribbean all-inclusive resorts with cruise ship and vacation operations. Royal Caribbean is funding the deal through committed debt financing from Morgan Stanley, with closing expected in early twenty twenty-seven. The investment reflects Royal Caribbean's strategic shift to diversify beyond traditional cruising into broader vacation offerings. Sandals founder Gordon Stewart's family will retain the other fifty percent stake, with Adam Stewart remaining as executive chairman. Both companies say existing bookings and loyalty programs will continue unchanged after the deal closes, and the partnership is expected to boost earnings next year.
Key facts
- Royal Caribbean acquiring 50% equity stake in Sandals and Beaches Resorts for approximately $3 billion
- Deal values entire Sandals company at $6 billion
- Transaction represents forward EBITDA multiple of approximately 10 times
- Stewart family retains other 50% stake; Adam Stewart remains executive chairman
- Deal expected to close in early 2027 subject to regulatory approvals
- Funding secured through committed debt financing from Morgan Stanley
- Royal Caribbean operates 71 ships across three brands: Royal Caribbean, Celebrity Cruises, and Silversea
- Sandals operates 12 all-inclusive properties across eight Caribbean destinations
- Royal Caribbean stock fell approximately 6% on announcement
Limits of this briefing
No explicit left-leaning or right-leaning political media outlets were identified in available coverage — sources were predominantly centrist business and travel media. Investor concern regarding the deal's debt financing and Royal Caribbean's recent stock underperformance is noted in financial analysis but not extensively elaborated across major outlets.
Sources
- CNBC: Royal Caribbean agrees to take 50% equity stake in Sandals for $3 billion Centre
- Quartz: Royal Caribbean is buying a 50% stake in Sandals Resorts for $3 billion Centre
- Travel Weekly: Vacation giants unite: Royal Caribbean Group to acquire 50% stake in Sandals Centre
- Caribbean Journal: Royal Caribbean Is Investing $3 Billion in Sandals and Beaches Resorts Centre
- GuruFocus: Royal Caribbean (RCL) to Acquire 50% Stake in Sandals and Beaches Resorts for $3 Billion Centre