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Recently, resort giants Royal Caribbean Group and Sandals Resorts announced the signing of an agreement to establish a joint venture aimed at jointly expanding the all-inclusive resort business. Royal Caribbean Group will hold a 50% equity stake in the joint venture.
This collaboration marks Royal Caribbean Group's formal entry into the all-inclusive resort sector and will support the future development of Sandals and Beaches Resorts.
Under the terms of the agreement, Royal Caribbean Group will acquire a 50% equity stake in Sandals and Beaches Resorts for approximately $3 billion, corresponding to a forward EBITDA valuation multiple of roughly 10 times. Royal Caribbean Group has secured a debt financing commitment from Morgan Stanley to support this investment.
The transaction is expected to close in early 2027, subject to customary approvals and satisfaction of closing conditions, and is anticipated to be accretive to the group's earnings in 2027.
The joint venture will be governed by a board co-led by Royal Caribbean Group President and Chief Executive Officer Jason Liberty and Sandals Resorts Executive Chairman Adam Stewart. Stewart will continue to serve as Executive Chairman of Sandals and Beaches Resorts.
Existing bookings, loyalty programs, resort operations, and cruise operations will all continue as normal. In the future, both parties will offer guests a rich array of experiences spanning cruises, exclusive destinations, and resorts.
The joint venture will help Royal Caribbean Group extend into adjacent vacation categories, further expanding the group's footprint in the approximately $2 trillion global vacation market, while also accelerating the growth pace of Sandals and Beaches Resorts.
The scope of cooperation will encompass a series of high-end all-inclusive resorts under Sandals and Beaches located in the Caribbean region. Both parties will also jointly explore new opportunities to broaden distribution channels and deepen guest connections.