RCG-Royal Caribbean Group and Sandals Resorts have signed an agreement to establish a joint venture in the all-inclusive resort sector, with Royal Caribbean Group acquiring a 50% equity interest in Sandals and Beaches Resorts for ~US$3 billion. The transaction is expected to close in early 2027, subject to customary regulatory approvals and other closing conditions.
The agreement expands Royal Caribbean Group’s business beyond cruise operations into the Caribbean all-inclusive resort market. The partnership will combine Sandals and Beaches Resorts’ resort portfolio and hospitality operations with Royal Caribbean Group’s existing vacation platform, which includes Royal Caribbean, Celebrity Cruises and Silversea, as well as private destinations and its planned Celebrity River Cruises operation.
Sandals and Beaches Resorts have operated in the Caribbean hospitality market for 4+ decades. The joint venture will include the brands’ existing all-inclusive properties across the region and is intended to support further resort expansion while creating additional opportunities to connect resort, cruise and private-destination experiences within the two companies’ respective portfolios.
Under the agreement, the joint venture will be governed by a board jointly led by Royal Caribbean Group Chairman and CEO Jason Liberty and Sandals Executive Chairman Adam Stewart. Stewart will retain a leadership role in the long-term strategic development of Sandals and Beaches Resorts.
Existing reservations, loyalty programmes, resort operations and cruise operations will continue independently following the establishment of the partnership. The companies plan to examine opportunities to expand distribution, increase cross-platform engagement and facilitate access to their respective vacation offerings.
Royal Caribbean Group will finance the ~US$3 billion investment through committed debt financing arranged with Morgan Stanley. The transaction values the resort business at ~US$6 billion and represents a forward EBITDA multiple of about 10 times. Royal Caribbean Group said the investment is expected to be accretive to earnings in 2027.
The transaction represents an expansion of Royal Caribbean Group’s participation in the broader vacation market, which the company estimates at ~US$2 trillion globally. For Sandals and Beaches Resorts, the partnership is intended to provide additional resources for expansion and distribution while retaining the existing resort brands and operating structures.
Adam Stewart, Executive Chairman of Sandals and Beaches Resorts, said the agreement builds on the business established by his father, Gordon “Butch” Stewart, and provides additional capacity for the brands to expand while maintaining their focus on Caribbean hospitality. Jason Liberty said the transaction would extend Royal Caribbean Group’s vacation platform into an adjacent sector and combine its cruise and destination businesses with Sandals and Beaches’ resort operations.
Royal Caribbean Group currently operates 71 ships through Royal Caribbean, Celebrity Cruises and Silversea, alongside its 50% joint venture interest in TUI Cruises. The group is also expanding its portfolio of private destinations and plans to enter river cruising with Celebrity River Cruises in 2027.
Sandals Resorts operates adults-only all-inclusive properties in Jamaica, Antigua, Saint Lucia, The Bahamas, Barbados, Grenada, Curaçao and Saint Vincent and the Grenadines. Beaches Resorts operates family-oriented properties in Jamaica and Turks and Caicos, with additional developments planned in The Bahamas, Barbados, Jamaica and Saint Vincent and the Grenadines.
BofA Securities and PJT Partners served as financial advisers to the Sandals Group, with Latham & Watkins and Jones Day providing legal advice. Perella Weinberg Partners and Morgan Stanley advised Royal Caribbean Group financially, while Kirkland & Ellis acted as its legal adviser.