Royal Caribbean confirms plan to buy half of Sandals and Beaches Resorts
The cruise group intends to invest roughly three billion dollars in the Caribbean all-inclusive resort business, with closing expected in early 2027.
Royal Caribbean Group confirmed that it plans to acquire a 50% equity stake in Sandals and Beaches Resorts. Morgan Stanley is providing committed debt financing, according to reports, and the transaction is expected to close in early 2027.
Royal Caribbean said the Sandals investment should begin contributing to earnings in the year after closing. The joint venture board will be led by Royal Caribbean chairman and CEO Jason Liberty and Sandals executive chairman Adam Stewart, according to the report.
Existing Sandals reservations, loyalty accounts and day-to-day operations are not changing, the report said.
Royal Caribbean shares fell 6.14% on September 22 and closed at a 52-week low after the Financial Times reported that the company was nearing a move into land-based resorts. According to Forbes, the shares’ two-day decline reached roughly 12% when the terms were released on September 23. Stifel analyst Steven Wieczynski expressed skepticism about companies diversifying beyond their core competencies.
