Royal Caribbean to Acquire 50% Stake in Sandals Resorts

Royal Caribbean Group has agreed to acquire a 50 percent equity stake in Sandals Resorts International for approximately $3 billion, valuing the resort chain at $6 billion. The deal, announced on September 23, creates a joint venture that integrates 20 all-inclusive resorts under the Sandals and Beaches brands into the cruise company's portfolio. The transaction is expected to close in early 2027, pending regulatory approvals.

The partnership allows Royal Caribbean to diversify beyond its cruise business into the land-based vacation market. For Sandals, the capital will accelerate international expansion, including a $1 billion strategy for Beaches and a $200 million transformation of three resorts in Jamaica. The joint venture will be governed by a board under the shared leadership of Royal Caribbean CEO Jason Liberty and Sandals Executive Chairman Adam Stewart.

Market reaction was initially skeptical, with Royal Caribbean shares dropping as much as 12 percent following the announcement. The company's stock had already fallen roughly 25 percent over the last year due to softer demand for European sailings. Despite the market volatility, the companies stated that existing resort operations, loyalty programs, and reservations will continue without interruption.

Adam Stewart assured employees, including more than 1,000 staff in Barbados, that day-to-day roles and leadership will remain unchanged. The companies intend to explore synergies in distribution and guest engagement to better compete in the global vacation market.