Royal Caribbean Buys Half of Sandals in $3 Billion Deal
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Royal Caribbean has agreed to acquire a 50% stake in Sandals Resorts International for $3 billion, valuing the resort business at $6 billion. The transaction is the cruise operator’s largest deal to date and forms part of its strategy to sell holidays both at sea and on land.
The deal will establish a new joint venture controlling Sandals’ 20 resorts across the Caribbean. Parts of the Stewart family will retain the remaining stake. Sandals operates resorts in destinations including St Vincent, St Lucia and Barbados, alongside Beaches Resorts, its family-focused sister brand.
The investment will allow Royal Caribbean to offer customers a wider selection of packages combining cruises with resort stays. The group already operates a fleet of 71 ships and several private destinations for cruise passengers. It has also expanded into river cruises and broader holiday packages.
Investors reacted cautiously, however, with Royal Caribbean’s shares closing 6.1% lower following the announcement. They have fallen 17% this year. The company also reduced its annual revenue-growth forecast from 10% to 9%, partly because of exchange-rate movements.
Sandals is the Caribbean’s largest private employer and had attempted to find a buyer several times during the past decade. A previous sale process was suspended during the pandemic. The latest transaction is expected to close in early 2027 and will give Royal Caribbean a significant presence in the Caribbean resort market.
