Royal Caribbean Buys 50% Stake in Sandals
Royal Caribbean Group will buy a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion, with closing expected in early 2027. The company plans to expand into an adjacent category of the global vacation market.
Royal Caribbean Group has agreed to partner with Sandals and Beaches Resorts, the all-inclusive brands that have operated across the Caribbean for decades. The company will buy a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion.
The deal is expected to close in early 2027, pending customary approvals. Royal Caribbean Group says the move is an expansion into an adjacent category of the roughly $2 trillion global vacation market.
Royal Caribbean already runs its own private destinations, including Perfect Day CocoCay in The Bahamas and Royal Beach Club Paradise Island in Nassau. Sandals and Beaches are all-inclusive resorts, which is a different product entirely.
The company plans to start river cruising in 2027 with Celebrity River Cruises, and once this deal closes, resorts would sit in the same portfolio as the ships. Royal Caribbean Group says the goal is to serve guests across more vacation occasions.
The companies will explore ways to broaden distribution, deepen guest engagement and make it easier for travelers to find experiences across both portfolios. At Sandals, all 17 resorts are all-inclusive, with prices covering unlimited food and drinks, plus water and land sports, scuba diving and golf.
Roundtrip airport transfers and all gratuities are included in the price. Some rooms add private plunge pools or Butler Elite service. Royal Caribbean Group says putting these offerings together gives travelers more choice, ease and value.
The announcement does not mention bundled cruise-and-resort stays or shared loyalty benefits. The companies say they will work together to give travelers more options, but the details have not been spelled out.
Key facts
- Royal Caribbean Group will buy a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion.
- The deal is expected to close in early 2027, pending customary approvals.
- Royal Caribbean Group plans to start river cruising in 2027 with Celebrity River Cruises.
- Sandals has 17 all-inclusive resorts across the Caribbean.
Three perspectives
Neutral
The deal is a significant expansion for Royal Caribbean Group, and it remains to be seen how the partnership will play out. The company says it will give travelers more choice and ease, but the details are still unclear. Royal Caribbean Group will have to wait for customary approvals before the deal can close.
Positive
The partnership between Royal Caribbean Group and Sandals and Beaches Resorts could bring more options and value to travelers. The company says it will make it easier for people to find experiences across both portfolios, and the all-inclusive resorts could be a major draw. Royal Caribbean Group is expanding its offerings in a significant way.
Negative
The deal may not bring immediate benefits to travelers, as the details of the partnership are still unclear. Royal Caribbean Group will have to work to integrate the resorts into its portfolio, and it may take time to see the results. The company is spending approximately $3 billion on the deal, which is a significant investment.
Your week in news, every Wednesday
The biggest stories of the week for your edition, in your inbox every Wednesday morning, your time. Free, and you can unsubscribe at any time.