Royal Caribbean Group to invest about $3 billion in Sandals partnership
The cruise company plans to acquire an undisclosed equity interest in Sandals and Beaches Resorts, with closing expected in early 2027.
Royal Caribbean Group and Sandals Resorts have agreed to form a strategic partnership in the all-inclusive resort market. Under the agreement, Royal Caribbean Group is set to invest approximately $3 billion for an equity stake in Sandals and Beaches Resorts.
The investment is not a full acquisition of the resort business. The companies did not disclose the ownership percentage Royal Caribbean Group would hold after the transaction closes. Completion is expected in early 2027, subject to customary approvals and closing conditions.
According to the companies, the joint venture is designed to accelerate expansion of the Sandals and Beaches portfolios while adding to the vacation experiences available through Royal Caribbean Group’s platform. Sandals and Beaches will retain their established brands, and existing reservations, loyalty programs, resort operations and cruise operations are expected to continue as usual.
A board jointly led by Sandals and Beaches Resorts Executive Chairman Adam Stewart and Royal Caribbean Group Chairman and CEO Jason Liberty will govern the venture. Royal Caribbean Group said committed debt financing from Morgan Stanley will fund the investment. The company expects the deal to contribute positively to earnings in 2027, although it did not provide a specific estimate.
