Royal Caribbean to buy half of Sandals Resorts in $3 billion joint venture
Royal Caribbean Group agreed to purchase a 50% stake in Sandals and Beaches Resorts for about $3 billion, forming a joint venture in the Caribbean all-inclusive market.
Royal Caribbean Group announced an agreement to acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion, valuing the resort group at $6 billion and representing a forward EBITDA multiple of about 10x. The financing will be provided through committed debt from Morgan Stanley, with the transaction expected to close in early 2027 pending customary approvals and to be earnings-accretive in the following year.
Governance of the new joint venture will be shared between Royal Caribbean Chairman and CEO Jason Liberty and Sandals Executive Chairman Adam Stewart, who will retain his strategic role. The deal expands Royal Caribbean’s reach beyond cruising into the all-inclusive Caribbean market, while Sandals’ adult-only and family-focused properties across multiple islands will remain operational with existing reservations and loyalty programs intact.
Advisors included BofA Securities and PJT Partners for Sandals, and Perella Weinberg Partners and Morgan Stanley for Royal Caribbean. The move follows Royal Caribbean’s recent adjustment of its revenue growth target and an upgraded earnings outlook.
Why it matters
The deal broadens a major cruise line into land-based hospitality, creating a powerful new player in Caribbean tourism.
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