Royal Caribbean Reportedly Plans $3 Billion Resorts Investment
A report said the cruise company intended to acquire a 50% stake in Sandals and Beaches Resorts, with the transaction expected to support earnings and EBITDA.
Royal Caribbean Cruises planned to acquire a 50% interest in Sandals and Beaches Resorts for approximately US$3 billion, according to the report. The planned transaction was anticipated to be accretive to the cruise company’s earnings and EBITDA.
The report listed Royal Caribbean shares at US$281.41 and said the stock had returned 4.23% over seven days and gained 6.39% over 30 days. Its figures also showed a 6.5% decline in one-year total shareholder return, while the three-year total shareholder return had risen to more than three times its earlier level.
The report’s most widely followed valuation narrative estimated fair value at US$350.44, compared with the latest closing price of US$281.41. It characterized that valuation as indicating the shares were 19.7% undervalued.
