Royal Caribbean Group and Sandals Resorts have signed an agreement to form a partnership in the all-inclusive resort space with a 50pc investment from Royal Caribbean Group. The joint venture will create new opportunities for continued resort growth while broadening the experiences across Royal Caribbean Group’s vacation platform. The partnership expands Royal Caribbean Group into an adjacent vacation category growing its participation in the approximately $2 trillion (€1.7 trillion) global vacation market.
Under the terms of the agreement Royal Caribbean Group will acquire a 50pc equity interest in Sandals and Beaches Resorts for approximately $3bn (€2.55bn) representing a forward EBITDA multiple of approximately 10x. Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment. The transaction is expected to close in early 2027 subject to customary approvals and closing conditions and is expected to be accretive to earnings next year.
The joint venture will be governed by a board under the shared leadership of Adam Stewart and Jason Liberty. Stewart will maintain a leadership role in guiding the company’s long-term strategic growth as Executive Chairman of Sandals and Beaches Resorts. Existing reservations loyalty programmes resort operations and cruise operations will continue as usual with the partnership bringing additional resources to support future opportunities.
Jason Liberty, Chairman and CEO of Royal Caribbean Group, shared: “For nearly 60 years, we’ve reimagined what a vacation can be, constantly expanding the ways we inspire our guests to explore, connect and create lifelong memories. We have been building a vacation platform that brings joy toms of people around the world and creates meaningful relationships that last with our guests. Our partnership with Sandals and Beaches Resorts is an important next step on that journey – bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world. The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy. Together, we see tremendous opportunity to expand the reach of Sandals and Beaches Resorts and continue turning the vacation of a lifetime into a lifetime of vacations.”
