The agreement, announced yesterday in Montego Bay, Jamaica, and Miami, would bring together Royal Caribbean Group’s cruise and vacation portfolio with Sandals and Beaches Resorts’ more than four decades of experience in Caribbean hospitality.
The proposed joint venture would include Sandals and Beaches’ collection of all-inclusive properties across the region.
The companies said the partnership is intended to support resort expansion, broaden vacation offerings and make it easier for travellers to access experiences across their respective portfolios.
Royal Caribbean Group operates the Royal Caribbean, Celebrity Cruises and Silversea brands, alongside a portfolio of private destinations and other vacation offerings. The company said the investment would expand its participation in the global vacation market by adding an adjacent category of land-based, all-inclusive resorts.
The partnership is also expected to create opportunities for the companies to broaden distribution, strengthen customer engagement and expand the reach of Sandals and Beaches Resorts.
Royal Caribbean Group Chairman and Chief Executive Officer Jason Liberty said the agreement would bring together two established vacation companies with a shared history in the Caribbean.
He said the partnership represented another step in the development of Royal Caribbean Group’s broader vacation platform and would support the growth of Sandals and Beaches Resorts.
Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts, said the agreement would allow the company to expand with a partner that shared its commitment to hospitality, long-term investment and established brands.
Stewart said the company would continue to focus on providing vacation experiences while creating opportunities for its employees, travel adviser partners and the communities in which it operates.
Under the proposed arrangement, the joint venture would be governed by a board under the shared leadership of Stewart and Liberty. Stewart will retain a leadership role in guiding the company’s long-term strategic growth as Executive Chairman of Sandals and Beaches Resorts.
The companies said existing reservations, loyalty programmes, resort operations and cruise operations would continue as usual. Additional resources from the partnership are expected to support future expansion and other opportunities.
Royal Caribbean Group said the US$3 billion investment represented a forward earnings-before-interest, taxes, depreciation and amortisation multiple of approximately 10 times. The company has secured committed debt financing from Morgan Stanley to fund the transaction.
The deal is expected to close in early 2027, subject to customary regulatory approvals and other closing conditions. Royal Caribbean Group said the transaction is expected to be accretive to earnings next year.
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, the company’s family-oriented all-inclusive brand, operates properties in Negril, Jamaica, and Turks and Caicos. The brand also has planned developments in Exuma, The Bahamas; Barbados; Runaway Bay, Jamaica; and Saint Vincent and the Grenadines.
The companies said the partnership would build on their respective operations while expanding the range of vacation experiences available to travellers across the Caribbean and beyond.
