Royal Caribbean's $3B Sandals Deal Should Serve as Long-Term Positive

Dow Jones
09/23

1113 ET - Royal Caribbean's $3 billion deal to acquire a 50% stake in the parent company of Sandals and Beaches Resorts should pay off for the cruise operator in the long run, Jefferies analysts say in a research note. The viewpoint comes as investors seemed to initially balk at the deal, with Royal Caribbean now off 2.9%, although it had been down more earlier. The analysts say all-inclusive resorts are a natural progression for Royal Caribbean, and the deal should prove accretive to earnings. "The deal is consistent with our view that the sea and land-based leisure channels converge over time," the analysts add.

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