Royal Caribbean Group to invest $3 billion in Sandals, Beaches resorts partnership
Originally published by South Florida Caribbean News Read the original
MIAMI, Fla – Royal Caribbean Group (NYSE: RCL) will invest approximately $3 billion for an equity stake in Sandals and Beaches Resorts under an agreement announced today. This will create a joint venture designed to accelerate growth in the all-inclusive resort market.
We expect the transaction to close in early 2027, subject to customary approvals and closing conditions.
The partnership combines Sandals and Beaches’ more than four decades of Caribbean hospitality experience with Royal Caribbean Group’s portfolio. This portfolio includes Royal Caribbean, Celebrity Cruises, Silversea, private destinations, a new river cruise offering and an industry-first loyalty program.
Moreover, the companies said the venture will expand the range of cruise, private-destination and resort vacations available to travelers.
The venture moves Royal Caribbean Group into an adjacent vacation category and expands its participation in the approximately $2 trillion global vacation market. It also is intended to speed the growth of Sandals and Beaches Resorts.
The companies will explore broader distribution, deeper guest engagement and simpler ways for travelers to discover offerings across both portfolios.
Global Vacation Market
“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,” said Jason Liberty, chairman and CEO of Royal Caribbean Group.
“Our partnership with Sandals and Beaches Resorts is an important next step on that journey, bringing together two iconic vacation companies to strengthen and grow one of the world’s most admired resort portfolios. 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.”
Sandals and Beaches Resorts
“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,” said Adam Stewart, executive chairman of Sandals Resorts and Beaches Resorts.
“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.”
Stewart added: “As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations while creating opportunities for our team members, travel adviser partners and the communities we call home. The future has never been brighter, and I know this moment would make my father incredibly proud.”
A board led jointly by Stewart and Liberty will govern the venture. Stewart will continue to guide the company’s long-term strategy as executive chairman of Sandals and Beaches Resorts. Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, the companies said.
The approximately $3 billion investment represents a forward EBITDA multiple of about 10 times. Royal Caribbean Group has secured committed debt financing from Morgan Stanley. The transaction is expected to increase earnings in 2027.
BofA Securities and PJT Partners served as financial advisers to Sandals Group, and Latham & Watkins and Jones Day served as its legal advisers. Perella Weinberg Partners and Morgan Stanley served as financial advisers to Royal Caribbean Group, and Kirkland & Ellis LLP served as its legal adviser.
The post Royal Caribbean Group to invest $3 billion in Sandals, Beaches resorts partnership appeared first on South Florida Caribbean News.