Royal Caribbean Acquires Half Interest in Sandals Resorts for $3 Billion
Miami, Friday, 25 September 2026.
Royal Caribbean Group has agreed to purchase a 50% stake in Sandals and Beaches Resorts for $3 billion, bridging cruise and land-based luxury tourism across the Caribbean by 2027.
Deal Overview and Announcement
Royal Caribbean Group (NYSE: RCL) has entered into a definitive agreement to acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion [1][4]. The agreement was signed on 23 September 2026, with the public announcement following on 24 September 2026 [1][4]. This strategic move is designed to bridge the gap between cruise-based and land-based luxury tourism across the Caribbean region [1]. The transaction is expected to close in early 2027, pending customary approvals and closing conditions [1][4]. By integrating Sandals’ extensive all-inclusive portfolio with Royal Caribbean’s cruise platform, the partnership aims to capture greater value across the travel supply chain [1].
Strategic Integration and Economic Impact
The Florida-Caribbean Cruise Association (FCCA) has highlighted the deal as a transformative approach to expanding guest experiences and boosting local infrastructure [1]. Adam Ceserano, President of the FCCA, noted that cruise and land-based vacations are increasingly part of the same vacation ecosystem [1]. The partnership seeks to give travelers more reasons to experience the Caribbean and more ways to engage with destinations [1]. This collaboration is anticipated to create meaningful benefits for Caribbean residents through jobs and stronger local businesses [1]. The FCCA CEO, Michele Paige, stated that the Caribbean is strongest when tourism stakeholders recognize shared interests [1].
Financial Structure and Valuation
The $3 billion investment for a 50% stake implies a total valuation for Sandals and Beaches Resorts of 6 billion [4]. This valuation reflects a forward EBITDA multiple of roughly 10x, as disclosed in reports from 23 September 2026 [4]. Royal Caribbean Group has secured committed debt financing from Morgan Stanley to facilitate the transaction [4]. Financial and legal advisors involved in the deal include BofA Securities, PJT Partners, Perella Weinberg Partners, Latham & Watkins, Jones Day, and Kirkland & Ellis LLP [4]. The transaction is anticipated to be earnings-accretive in 2027 following the close [4].
Leadership and Future Vision
Jason Liberty, Chairman and CEO of Royal Caribbean Group, described the partnership as an important next step in building a vacation platform that brings joy to millions [4]. Adam Stewart, Executive Chairman of Sandals Resorts, will retain his role to guide long-term strategic growth under the new board structure [4]. Stewart emphasized that the partnership allows for faster growth with a partner sharing values of exceptional hospitality [4]. A new board will be established under the shared leadership of Stewart and Liberty to oversee the joint venture [4]. This alliance marks a significant shift in how major tourism companies operate within the Caribbean market [1][4].