Royal Caribbean reportedly nears deal for controlling stake in Sandals
The potential transaction would value the Caribbean resort operator at more than $6 billion and could lead to a full buyout.
Royal Caribbean is reportedly close to an agreement to acquire a majority stake in Sandals Resorts International, extending the cruise company’s presence further into land-based vacations. The proposed deal would make Royal Caribbean the resort group’s controlling shareholder, with full ownership potentially following later.
According to the report, the transaction could be agreed within days, although negotiations could still fall apart. It may become Royal Caribbean’s largest acquisition and would place 20 Caribbean resorts under its control. Some members of Sandals’ founding Stewart family would retain equity under the proposal.
Sandals operates waterfront properties in destinations including St Vincent, St Lucia and Barbados. It also owns Beaches Resorts, a brand focused on family vacations.
Royal Caribbean shares fell nearly 6% following the report and were down 16.7% for the year. At its July second-quarter results, the company lowered its full-year revenue growth forecast from 10% to 9%, attributing the revision to softer demand for European summer vacations while describing the Caribbean as a stronger market.
