Royal Caribbean plans $3 billion investment in Sandals Resorts
The cruise group intends to acquire a half-ownership stake, with the Stewart family retaining its half of the resort enterprise.
Royal Caribbean announced plans to invest about $3 billion for a half-ownership stake in Sandals Resorts International, valuing the resort enterprise at roughly $6 billion. The transaction is expected to close in early 2027, subject to regulatory approvals.
The Stewart family, which founded Sandals more than four decades ago, will retain its half-ownership. Existing reservations, travel advisor commissions and booking platforms will remain unchanged in the near term, while Royal Caribbean plans to connect Sandals to its unified loyalty platform over time.
Citi analyst James Hardiman placed Buy-rated Royal Caribbean Group on a 90-day positive Catalyst Watch. JPMorgan also raised its price target for Royal Caribbean shares from $345 to $394, described as nearly 71% above Wednesday’s closing price.
Royal Caribbean shares rose nearly 4% on Thursday following the news. The company’s portfolio includes Royal Caribbean International, Celebrity Cruises and Silversea, while Celebrity River Cruises is planned to launch in 2027.
