Royal Caribbean Group Confirms USD 3 Billion Deal for 50% Stake in Sandals Resorts
Cubierto por 5 fuentesPublicado
- sea-trade cruiseRoyal Caribbean reported close to acquiring Sandals stake
- cruise criticIs Royal Caribbean Group On the Verge of Acquiring a Majority Stake in Sandals Resorts International?
- Royal Caribbean groupROYAL CARIBBEAN GROUP AND SANDALS RESORTS ANNOUNCE LANDMARK PARTNERSHIP TO ACCELERATE THEIR LEADING VACATION EXPERIENCES
- sea-trade cruiseIt's official: Royal Caribbean acquiring 50% of Sandals Resorts
- prnewswireROYAL CARIBBEAN GROUP AND SANDALS RESORTS ANNOUNCE LANDMARK PARTNERSHIP TO ACCELERATE THEIR LEADING VACATION EXPERIENCES
- Cruise MapperRCG-Royal Caribbean Group to acquire 50% stake in Sandals & Beaches Resorts
- sea-trade cruiseAssessing the Royal Caribbean-Sandals joint venture
Royal Caribbean Group confirmed the signing of an agreement to acquire 50% of Sandals Resorts International, the Caribbean all-inclusive resort operator, for about USD 3 billion. The announcement came a day after the Financial Times and CNBC reported that the cruise line was in advanced talks to take a stake in the company.
Initial reports
Before the official confirmation, CNBC had reported that Royal Caribbean was close to finalizing a USD 3 billion deal for 50% of Sandals, while the Financial Times, which first broke the story, spoke of a majority stake in a deal that would exceed USD 6 billion, with founder Gordon Stewart's family retaining part of the equity. Royal Caribbean did not respond to inquiries at the time, and RCL shares fell more than 6% that day to USD 234.89, well below the 52-week high of USD 356.39 recorded on February 10.
The official agreement
On September 23, Royal Caribbean Group and Sandals Resorts signed the definitive agreement in Miami, led by Jason Liberty, President and CEO of Royal Caribbean Group, and Adam Stewart, Executive Chairman of Sandals. The cruise line will acquire 50% of Sandals and Beaches Resorts for approximately USD 3 billion, representing a forward EBITDA multiple of about 10 times, financed with committed debt arranged by Morgan Stanley. The joint venture will be run by a board shared between Stewart and Liberty, and the transaction is expected to close in early 2027 and be accretive to earnings the following year.
Sandals and Beaches
Sandals operates 17 adults-only all-inclusive resorts across the Caribbean and the Bahamas, in Jamaica, Saint Lucia, Barbados, Antigua, Curaçao, Grenada and Saint Vincent and the Grenadines, as well as two family-friendly properties under the Beaches brand in Turks and Caicos and Jamaica. The company was founded in 1981 by Gordon “Butch” Stewart in Montego Bay and has more than four decades of operation in Caribbean hospitality.
Market reaction
Following confirmation of the deal, RCL shares fell nearly 9% over a few days and hit a 52-week low of USD 222.22 on Wednesday, before recovering 4% on Thursday. Analysts pointed to investor doubts about whether diversifying into land-based resorts would yield as much as building new ships, while brokerage William Blair maintained its “outperform” rating on Royal Caribbean, arguing that the 50/50 structure and continuity of Sandals' leadership mitigate the risk of distraction from the core cruise business.
