Royal Caribbean agrees to buy 50% of Sandals and Beaches Resorts
The approximately $3 billion transaction would create a joint venture valued at $6 billion and is expected to close in early 2027.
Royal Caribbean announced Sept. 23 that it had signed an agreement to acquire a 50% interest in Sandals and Beaches Resorts for about $3 billion. The companies plan to form a joint venture valuing the resort operator at $6 billion.
The transaction will be financed with committed debt funding from Morgan Stanley rather than cash from Royal Caribbean’s balance sheet. Management expects the investment, priced at an implied multiple of roughly 10 times forward EBITDA, to contribute to earnings after closing.
The deal would add Sandals’ 20 all-inclusive Caribbean resorts to Royal Caribbean’s wider portfolio, which includes Royal Caribbean, Celebrity Cruises, Silversea, private destinations and the new Celebrity River product. The joint venture’s board will be co-led by Liberty and Sandals Executive Chairman Adam Stewart.
Royal Caribbean shares fell 6.14% on Sept. 22 to close at $234.89, then a 52-week low, as word emerged that the cruise company was nearing an expansion into land-based resorts. The stock subsequently reached another 52-week low of $231.03, its 24th such low in 12 months, compared with four new 52-week highs. Shares were down 35% from their mid-February high of $356.39.
