Royal Caribbean acquires fifty percent stake in Sandals and Beaches Resorts for $3 billion

Royal Caribbean Cruises Ltd. (RCL) said Wednesday that it entered into definitive agreements to acquire a 50% equity interest in the business comprising Sandals and Beaches Resorts for a base purchase price of approximately $3 billion in cash. The cruise operator announced the transaction in a regulatory filing and a joint press release, pointing to a planned expansion into land-based all-inclusive destinations.

Key takeaways

• Royal Caribbean Group acquires a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion in cash.
• The base purchase price represents a forward EBITDA multiple of approximately 10x.
• The company secured committed debt financing from Morgan Stanley to fund the investment.
• The transaction is expected to close in early 2027, subject to customary approvals and closing conditions.

Acquisition terms and financing

The transaction covers Sandals and Beaches’ collection of premier all-inclusive properties across the Caribbean. Royal Caribbean Group funded the $3 billion base purchase price through committed debt financing secured from Morgan Stanley. The investment represents a forward EBITDA multiple of approximately 10x, according to the press release. The joint venture will expand Royal Caribbean Group into an adjacent vacation category, participating in the broader global vacation market.

"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," Jason Liberty, Chairman and CEO, Royal Caribbean Group, said in a statement. "The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy."

Governance and operations

The joint venture will operate under a board governed by the shared leadership of Adam Stewart and Jason Liberty. Adam Stewart will maintain a leadership role in guiding long-term strategic growth as Executive Chairman of Sandals and Beaches Resorts. Existing reservations, loyalty programs, resort operations, and cruise operations will continue as usual while the partnership integrates additional resources.

"This partnership is the natural next step in building on that conviction," Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts, said in a statement. "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."

Financial advisors for the Sandals Group included BofA Securities and PJT Partners, with Latham & Watkins and Jones Day acting as legal advisors. Perella Weinberg Partners and Morgan Stanley served as financial advisors, and Kirkland & Ellis LLP acted as legal advisor to Royal Caribbean Group.

Why it matters

The investment moves Royal Caribbean Group beyond traditional cruise operations into land-based all-inclusive resorts, opening a direct channel to the resort hospitality market across Jamaica, Antigua, Saint Lucia, The Bahamas, Barbados, Grenada, Curaçao, and Saint Vincent and The Grenadines. The transaction provides Sandals and Beaches with capital and distribution support to accelerate expansion for both adults-only and family-oriented properties.

By the numbers

Remaining conditions

The transaction remains subject to customary regulatory approvals and closing conditions before the expected early 2027 completion. Advisors on both sides continue working through final closing requirements while existing resort operations proceed uninterrupted.