Royal Caribbean Group (NYSE:RCL) has agreed to acquire a 50% stake in Sandals and Beaches Resorts for approximately $3 billion, expanding the cruise operator’s business into the all-inclusive resort market.
The companies said Wednesday that the investment will create a joint venture combining the Caribbean resort portfolio of Sandals and Beaches with Royal Caribbean’s cruise, private destination and vacation operations.
The transaction values the resort business at approximately 10 times forward earnings before interest, taxes, depreciation and amortization, according to Royal Caribbean.
Morgan Stanley Provides Debt Financing
Royal Caribbean said it has secured committed debt financing from Morgan Stanley to fund the acquisition.
The transaction is expected to close in early 2027, subject to regulatory approvals and other customary closing conditions.
Royal Caribbean said it expects the investment to contribute to earnings next year. The company did not provide further details on the anticipated financial contribution.
Partnership Targets Resort Expansion
Under the joint venture, the companies plan to expand the Sandals and Beaches resort portfolio and broaden distribution of their vacation products.
The partnership is also intended to provide customers with access to resort and cruise offerings across the two companies’ portfolios.
Sandals operates all-inclusive resorts across the Caribbean under the Sandals and Beaches brands.
Stewart and Liberty to Lead Joint Venture
Sandals Executive Chairman Adam Stewart will retain a leadership role in the joint venture following completion of the transaction.
He will work alongside Royal Caribbean Chief Executive Jason Liberty as the companies develop the partnership.
The transaction marks Royal Caribbean’s expansion beyond its existing cruise, private destination and vacation businesses into the all-inclusive resort sector.
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