Photo: Joni Hanebutt / Shutterstock.com Royal Caribbean Group is expanding beyond cruising with a new partnership with Sandals Resorts, investing approximately $3 billion in Sandals and Beaches Resorts as the companies join forces in the all-inclusive resort market.
The agreement, announced today, September 23, by Royal Caribbean Group and Sandals Resorts, will create a joint venture focused on expanding the Sandals and Beaches resort businesses across the Caribbean while connecting them with Royal Caribbean Group’s wider vacation platform.
Sandals and Beaches Resorts have more than four decades of experience in Caribbean hospitality. Royal Caribbean Group brings its cruise brands, including Royal Caribbean, Celebrity Cruises and Silversea, along with its portfolio of private destinations, new river cruising offering and loyalty program.
The companies say the partnership will give travelers access to a broader combination of cruise, private destination and resort experiences.
It also expands Royal Caribbean Group into an adjacent part of the vacation industry as the company increases its participation in the approximately $2 trillion global vacation market.
Photo: Joni Hanebutt / Shutterstock.comFor Sandals and Beaches, the deal is expected to support further expansion as demand for its all-inclusive resorts grows. The partnership will include the brands’ collection of all-inclusive properties across the Caribbean.
The companies also plan to explore ways to broaden distribution and deepen guest engagement, potentially making it easier for travelers to discover experiences across both portfolios.
“This is an important next step on that journey,” said Jason Liberty, Chairman and CEO of Royal Caribbean Group. He said the partnership would bring together the two companies and provide an opportunity to expand the reach of Sandals and Beaches Resorts while building on their existing brands.
Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts, said the agreement builds on the vision established by his father, Gordon “Butch” Stewart, who founded Sandals Resorts.
Stewart said the partnership will allow the company to grow faster while maintaining its focus on hospitality, its employees, travel advisor partners and the Caribbean communities where its resorts operate.
The joint venture will be governed by a board under the shared leadership of Stewart and Liberty. Stewart will remain Executive Chairman of Sandals and Beaches Resorts and will continue to play a role in the company's long-term strategic growth.
For customers, the companies said existing reservations, loyalty programs and resort operations will continue as usual. Cruise operations will also continue without changes as a result of the agreement.
Under the terms announced, Royal Caribbean Group will acquire an equity interest in Sandals and Beaches Resorts for approximately $3 billion. The investment represents a forward EBITDA multiple of approximately 10 times.
Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment. The company also expects the transaction to be accretive to earnings next year.
The deal is expected to close in early 2027, subject to customary approvals and closing conditions.