Royal Caribbean Group (NYSE: RCL) and Sandals Resorts announced an agreement under which the cruise ship operator will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion.

Under the deal, the two will form a joint venture in the all-inclusive resort sector.

Royal Caribbean 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 the following year.

The joint venture will be governed by a board under the shared leadership of Adam Stewart, Executive Chairman of Sandals Resorts, and Jason Liberty, Chairman and CEO of Royal Caribbean Group. Existing reservations, loyalty programs, and resort and cruise operations will continue as usual during the transition.

"This partnership is the natural next step in building on that conviction. It gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment, and the power of enduring brands," said Stewart.