Royal Caribbean to buy 50% of Sandals

Royal Caribbean Group (RCL) has agreed to acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion. The investment extends Royal Caribbean’s presence in the Caribbean leisure market beyond its core cruise operations into the all‑inclusive resort segment. The transaction is described as being priced at about a 10x forward EBITDA multiple, providing a valuation benchmark for the resort portfolio.

The companies expect the deal to be accretive to Royal Caribbean’s earnings in the year following completion. This planned earnings contribution is tied to the resorts’ existing operations and the structure of the joint venture. The parties have not detailed specific synergy targets, but they emphasize the financial profile through the stated EBITDA multiple and accretion expectations.

Royal Caribbean has secured committed debt financing from Morgan Stanley (MS) to fund the approximately $3 billion investment. Using committed financing provides visibility on the funding required for closing and reduces execution risk related to capital availability. The company has not disclosed additional terms of the financing beyond the commitment itself.

The arrangement will be structured as a 50/50 joint venture between Royal Caribbean and the owners of Sandals and Beaches Resorts. Governance will be overseen by a board under shared leadership. Jason Liberty, representing Royal Caribbean, and Adam Stewart, representing Sandals and Beaches, will jointly lead the board.

Adam Stewart will remain Executive Chairman of Sandals and Beaches Resorts within the new joint venture structure. This continuity of leadership is designed to preserve the existing management of the resort brands while integrating them into the new ownership framework. The shared board structure formalizes equal governance between the two partners.

Sandals and Beaches Resorts operates a network of all‑inclusive properties across the Caribbean. Its footprint includes resorts in Jamaica, Antigua, Saint Lucia, The Bahamas, Barbados, Grenada, Curaçao, Saint Vincent and The Grenadines, and Turks and Caicos. These properties are included in the joint venture that Royal Caribbean is buying into.

The companies target closing the transaction in early 2027. Completion is subject to customary approvals and closing conditions, which have not been specified in detail. Until the deal closes, both firms are expected to continue operating independently under their existing structures.

Once finalized, the joint venture will link a major cruise operator with an extensive portfolio of Caribbean resorts. The combined platform is expected by the companies to contribute to Royal Caribbean’s earnings after closing, while maintaining the Sandals and Beaches brands and leadership.