Royal Caribbean Group and Sandals Resorts have signed an agreement to form a strategic partnership in the all-inclusive resort market, with Royal Caribbean Group set to acquire an equity interest in Sandals and Beaches Resorts for approximately $3 billion. The transaction values the investment at roughly a 10x forward EBITDA multiple and is expected to close in early 2027, subject to customary approvals and closing conditions.
The partnership brings together two major travel and hospitality businesses with deep roots in the Caribbean. Sandals and Beaches Resorts have spent more than four decades building all-inclusive resort brands across the region, while Royal Caribbean Group operates a global vacation platform that includes Royal Caribbean, Celebrity Cruises, Silversea, private destinations, and an upcoming river cruising business.
The companies said the joint venture is intended to accelerate the expansion of Sandals and Beaches Resorts while broadening the vacation experiences available through Royal Caribbean Group’s platform.
Royal Caribbean Group is positioning the partnership as an expansion into an adjacent travel category beyond cruising. The company estimates the broader global vacation market at approximately $2 trillion, and the Sandals investment gives it exposure to all-inclusive land-based resorts while complementing its existing cruise and private-destination businesses.
The companies also intend to explore opportunities to broaden distribution, deepen guest engagement, and make it easier for travelers to discover and book experiences across both portfolios.
This could create additional connections between cruise vacations, private destinations, and all-inclusive resort stays, potentially allowing guests to interact with the two companies across more types of trips.
The joint venture will include the existing collection of Sandals and Beaches properties across the Caribbean.
Sandals Resorts operates adults-only all-inclusive resorts in destinations including Jamaica, Antigua, Saint Lucia, The Bahamas, Barbados, Grenada, Curaçao, and Saint Vincent and the Grenadines.
Beaches Resorts, which is focused on families and multigenerational travelers, currently operates properties in Negril, Jamaica, and Turks and Caicos, with additional resorts planned for Exuma, The Bahamas; Barbados; Runaway Bay, Jamaica; and Saint Vincent and the Grenadines.
Under the partnership, Sandals and Beaches will continue operating under their established brands rather than being absorbed into Royal Caribbean’s cruise brands.
Existing reservations, loyalty programs, resort operations, and cruise operations will continue as usual, according to the announcement. The companies described the transaction as providing additional resources for future growth rather than changing the current guest experience or operating model.
The joint venture will be governed by a board under the shared leadership of Adam Stewart, Executive Chairman of Sandals and Beaches Resorts, and Jason Liberty, Chairman and CEO of Royal Caribbean Group.
Stewart will retain a leadership role as Executive Chairman and will continue guiding the long-term strategic direction of Sandals and Beaches Resorts.
The transaction provides Sandals with a major strategic and financial partner as it pursues additional resort development across the Caribbean.
Royal Caribbean, meanwhile, gains exposure to an established luxury all-inclusive platform with brands that have longstanding recognition among travelers.
The companies emphasized that their relationship builds on complementary strengths. Sandals brings extensive expertise in all-inclusive resort operations, while Royal Caribbean contributes scale, distribution, loyalty, technology, and a broader vacation ecosystem.
Royal Caribbean Group operates 71 ships serving more than 1,000 destinations across all seven continents through its wholly owned Royal Caribbean, Celebrity Cruises, and Silversea brands. The company also owns a 50% interest in TUI Cruises and is expanding its private-destination portfolio through Perfect Day and Royal Beach Club developments.
Royal Caribbean is also preparing to enter river cruising in 2027 through Celebrity River Cruises, further expanding its vacation offerings beyond its traditional ocean cruise business.
The Sandals investment will be financed with committed debt funding from Morgan Stanley.
Royal Caribbean expects the transaction to be accretive to earnings in 2027, although the companies did not provide a specific earnings contribution estimate.
The approximately $3 billion investment represents Royal Caribbean Group’s equity interest in Sandals and Beaches Resorts, rather than a full acquisition of the resort business.
The announcement did not disclose the exact ownership percentage Royal Caribbean will hold following closing.
The transaction also represents a significant liquidity and strategic event for the Stewart family-owned resort business while preserving the Sandals and Beaches brands and existing leadership structure.
Sandals Resorts was founded by Gordon “Butch” Stewart, who built the company into one of the Caribbean’s most recognizable hospitality brands.
His son, Adam Stewart, has continued leading the company’s expansion and will remain central to the business following completion of the Royal Caribbean investment.
The partnership could also strengthen Sandals’ ability to develop additional properties by combining Royal Caribbean’s balance sheet, distribution capabilities, and customer ecosystem with Sandals’ resort development and operating expertise.
Both companies emphasized their shared Caribbean heritage and their intention to invest further in the region as the partnership expands.
Support: BofA Securities and PJT Partners served as financial advisors to Sandals Group, while Latham & Watkins and Jones Day provided legal counsel. Perella Weinberg Partners and Morgan Stanley advised Royal Caribbean Group, with Kirkland & Ellis serving as legal counsel.
KEY QUOTES:
“For nearly 60 years, we’ve reimagined what a vacation can be, constantly expanding the ways we inspire our guests to explore, connect and create lifelong memories. We have been building a vacation platform that brings joy to millions of people around the world and creates meaningful relationships that last with our guests. Our partnership with Sandals and Beaches Resorts is an important next step on that journey – bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world. The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy. Together, we see tremendous opportunity to expand the reach of Sandals and Beaches Resorts and continue turning the vacation of a lifetime into a lifetime of vacations.”
Jason Liberty, Chairman And CEO Of Royal Caribbean Group
“My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality. Today is proof of how far that vision can go. This partnership is the natural next step in building on that conviction. It gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment, and the power of enduring brands. Together, we will introduce more guests to Sandals and Beaches Resorts while creating even more extraordinary experiences for those who have made our resorts part of their lives for decades.”
Adam Stewart, Executive Chairman Of Sandals Resorts And Beaches Resorts
