Royal Caribbean to buy 50% stake in Sandals Resorts for $3bn

Investing.com -- Royal Caribbean has agreed to purchase a 50% stake in Sandals Resorts International for $3bn, valuing the all-inclusive Caribbean resort company at $6bn according to the Financial Times. The transaction represents the largest acquisition in the Miami-based cruise operator's history.

The deal will create a joint venture that controls Sandals' 20 hotel properties spread across Caribbean islands including St Vincent, St Lucia and Barbados. Members of the Stewart family will retain ownership of the remaining 50% stake in the newly formed venture.

The agreement follows years of unsuccessful attempts to sell Sandals, a process complicated by the 2021 death of founder Gordon "Butch" Stewart. His passing led to family disputes and legal conflicts over trusts containing portions of his estate.

Royal Caribbean chief executive Jason Liberty stated that the Sandals partnership marks "an important next step" in the company's efforts to build a wider vacation platform "bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world."

Liberty and Adam Stewart, who became executive chair after his father's death, will jointly oversee the board managing the joint venture.

Sandals markets itself as a couples-only destination, accepting only two-person room bookings. The company also runs Beaches Resorts, a brand focused on family vacations. Sandals employs more people in the Caribbean than any other private company.

Royal Caribbean operates a 71-ship fleet and has been expanding beyond traditional cruises under Liberty's leadership. The company acquired a majority stake in luxury cruise line Silversea for $1bn in 2018 before later taking full ownership.

Shares in Royal Caribbean closed down 6.1% on Tuesday following news of the deal talks. The stock has declined 17% this year. The company's market value stands at $62bn.

The transaction is expected to close in early 2027. Bank of America and PJT Partners advised Sandals, while Perella Weinberg and Morgan Stanley served as Royal Caribbean's financial advisers.Investing.com -- Royal Caribbean has agreed to purchase a 50% stake in Sandals Resorts International for $3bn, valuing the all-inclusive Caribbean resort company at $6bn according to the Financial Times. The transaction represents the largest acquisition in the Miami-based cruise operator's history.

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