Royal Caribbean to Acquire 50% Stake in Sandals Resorts for About US$3 Billion

Key points

• Royal Caribbean Group and Sandals Resorts signed an agreement to form a joint venture to expand all-inclusive resort operations, with Royal Caribbean holding 50%.
• Royal Caribbean will acquire a 50% stake in Sandals and Beaches Resorts for about US$3 billion, corresponding to roughly 10 times forward EBITDA.
• Royal Caribbean has obtained a debt financing commitment from Morgan Stanley to support 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 group earnings in 2027.
• The partnership marks Royal Caribbean's formal entry into the all-inclusive resort segment and will support the future development of Sandals and Beaches Resorts.
• The joint venture will help Royal Caribbean extend into an adjacent vacation category and expand its position in the roughly US$2 trillion global vacation market.
• The scope covers a series of premium all-inclusive resorts operated by Sandals and Beaches in the Caribbean.
• The joint venture will be governed by a board co-led by Stewart and Liberty, with existing bookings, loyalty programs, resort operations and cruise operations continuing as normal.