Truist expects early earnings benefit from Royal Caribbean-Sandals deal
The proposed acquisition of a half stake in Sandals Resorts is expected to close in early 2027.
Truist Securities said Royal Caribbean’s proposed acquisition of a 50% interest in Sandals Resorts is expected to add to earnings in the first full year of ownership.
The firm said the $3 billion transaction is comparable to Hyatt’s acquisition of Playa Hotels & Resorts. Truist estimated the deal would be about 0.5% accretive to Royal Caribbean’s 2027 earnings per share and share price.
According to Truist, travel executives offered positive early feedback and cited potential overlap between Royal Caribbean’s and Sandals’ customer bases. The firm said realizing that potential would depend on execution.
Truist also said executives from Royal Caribbean and Sandals discussed connecting the companies’ loyalty programs. They identified the possible future use of Sandals’ Caribbean real estate for cruise passenger beach clubs, although resort expansion remains the nearer-term priority.
Truist maintained its hold rating on Royal Caribbean and kept its price target at $297.
