Royal Caribbean Group has officially announced an agreement to acquire a 50% equity stake in Caribbean resorts operator Sandals Resorts International for $3 billion. This transaction values Sandals at $6 billion and marks Royal Caribbean's significant push to expand its offerings beyond traditional cruises into land-based vacation experiences. The deal brings together two major players in the travel industry, with Royal Caribbean aiming to diversify its portfolio and Sandals seeking additional resources for growth.
This partnership aims to broaden distribution, deepen guest engagement, and make it easier for travelers to discover vacation experiences across both companies' portfolios. Royal Caribbean Group Chairman and CEO Jason Liberty and Sandals Resorts Executive Chairman Adam Stewart will co-lead a board governing the joint venture. Existing reservations, loyalty programs, and operations for both Sandals and Royal Caribbean will continue as usual.
The deal is expected to close in early 2027, subject to customary approvals. Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment, and the transaction is anticipated to be accretive to earnings next year. While some reports suggested a 51% acquisition, the confirmed terms indicate an equal 50-50 partnership, distinguishing it from earlier market speculation. Investors, however, reacted negatively, with Royal Caribbean shares falling roughly 6% on the news.
