Royal Caribbean Group agrees to buy half of Sandals for about US$3 billion
Royal Caribbean Group has agreed to pay about US$3 billion for half of the company that runs Sandals and Beaches, a deal both expect to close in early 2027.
Royal Caribbean Group has agreed to pay about US$3 billion for half of Sandals Resorts International, the company behind the Sandals and Beaches all-inclusive resorts. The two companies announced the deal on Wednesday. That price puts the value of the whole business at roughly US$6 billion. Royal Caribbean Group owns the Royal Caribbean, Celebrity Cruises and Silversea cruise lines.
Port St. Maarten's published schedule lists 114 cruise calls from Monday 28 September to Monday 30 November. Of those, 42 are by the group's Royal Caribbean and Celebrity Cruises ships, and Rhapsody of the Seas alone is listed ten times. Four more calls are by Mein Schiff ships of TUI Cruises, in which the group holds a 50% share.
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Neither Sandals nor Beaches has a resort on St. Maarten or St. Martin. The Sandals website lists 17 all-inclusive resorts for adults, in Jamaica, Antigua, Saint Lucia, The Bahamas, Curaçao, Grenada, Saint Vincent and the Grenadines and Barbados. Beaches, the family brand, lists resorts in Jamaica and Turks and Caicos.
The companies said the price values Sandals and Beaches at about ten times the earnings, before interest, tax, depreciation and amortisation, that the business is expected to make. Royal Caribbean Group said it has committed debt financing from Morgan Stanley to pay for the stake. The companies expect the deal to close in early 2027; it still needs the usual approvals and must meet other closing conditions first. Royal Caribbean Group expects the stake to add to its earnings in 2027.
Adam Stewart, whose father Gordon "Butch" Stewart founded Sandals, will stay on as executive chairman of Sandals and Beaches Resorts, the companies said. He and Jason Liberty, Royal Caribbean Group's chairman and chief executive, will jointly lead the board that oversees the joint venture.
Existing bookings, loyalty programmes and the running of the resorts and ships will carry on as normal, the companies said. They said they would also look for ways to sell their holidays more widely and to make it easier for travellers to find what both businesses offer.