Royal Caribbean Group said it will buy a 50% equity stake in Sandals and Beaches Resorts for about $3 billion, marking a major expansion beyond cruising into the all-inclusive resort market.
The deal values the stake at roughly 10 times forward EBITDA and is expected to close in early 2027, pending approvals. Royal Caribbean said it has secured committed debt financing from Morgan Stanley to fund the investment.
The new partnership brings together Royal Caribbean’s cruise and destination portfolio with Sandals and Beaches’ Caribbean resort business. Royal Caribbean currently operates 71 ships reaching more than 1,000 destinations across all seven continents through Royal Caribbean, Celebrity Cruises and Silversea, plus a 50% interest in TUI Cruises. It is also expanding its private destination business and plans to launch Celebrity River Cruises in 2027.
Sandals and Beaches, built over more than four decades, will remain under shared governance, with Adam Stewart continuing in a leadership role as executive chairman. Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, while the companies said the partnership is intended to support future growth.
Royal Caribbean said the transaction is expected to be accretive to earnings next year. As a result of these announcements, the company's shares have moved -4.85% on the market, and are now trading at a price of $223.49. Check out the company's full 8-K submission here.
