Royal Caribbean shares slide amid reported Sandals talks
A report said the cruise company was discussing a controlling stake in the Caribbean resort operator at a valuation above $6 billion.
Royal Caribbean shares were trading 6% lower Tuesday as investors reacted to reports that the cruise company could expand beyond its core business through a potential investment in Sandals Resorts International.
According to the report, Royal Caribbean was discussing the acquisition of a controlling interest in Sandals at a valuation exceeding $6 billion. Talks remained underway, and no agreement had been completed. Members of Sandals’ founding Stewart family would initially retain an ownership stake under the reported proposal.
The potential transaction comes as Royal Caribbean reports continued growth. The company posted second-quarter revenue of $4.8 billion, a 6% increase from a year earlier, and adjusted earnings of $4.21 per share. It also raised its 2026 adjusted earnings-per-share forecast to a range of $17.73 to $17.87, while leverage remained below three times.
Management recently said 2027 bookings were running ahead of historical levels, with customers booking cruises at record prices. Separately, the report said environmental permitting issues in Mexico had prompted Royal Caribbean to reconsider its plans for Perfect Day Mexico.
