Royal Caribbean Group has agreed to invest approximately $3 billion for a 50% stake in Sandals and Beaches Resorts, confirming a major move into the all-inclusive resort sector just hours after reports emerged that the two companies were in negotiations.
The agreement will create a joint venture spanning Sandals and Beaches’ Caribbean resort portfolio and Royal Caribbean Group’s expanding holiday business, which includes Royal Caribbean, Celebrity Cruises and Silversea alongside private destinations and its forthcoming river cruise operation.
The companies announced the agreement on 23rd September 2026 following its signing at Royal Caribbean Group’s headquarters in Miami. The transaction is expected to close in early 2027, subject to customary approvals and closing conditions.
Under the terms of the deal, Royal Caribbean will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion. Royal Caribbean said the valuation represents a forward EBITDA multiple of approximately 10 times.
Morgan Stanley has provided committed debt financing to fund the investment, while Royal Caribbean expects the transaction to be accretive to earnings in 2027.
The confirmed terms differ significantly from the initial reports surrounding the negotiations, which suggested Royal Caribbean could acquire a majority stake and potentially move towards full ownership. Instead, the announced agreement establishes an equal 50% investment alongside the existing Sandals ownership.
Royal Caribbean Moves Into All-Inclusive Resorts
The transaction marks a substantial expansion of Royal Caribbean Group beyond its core cruise operations and the private destinations it has increasingly developed around its cruise brands.
Sandals brings more than four decades of experience in Caribbean all-inclusive holidays to the partnership. Its adults-only resorts operate across Jamaica, Antigua, Saint Lucia, the Bahamas, Barbados, Grenada, Curaçao and Saint Vincent and the Grenadines, while Beaches Resorts serves the family market.
Royal Caribbean currently operates 71 ships through its three wholly owned cruise brands, Royal Caribbean, Celebrity Cruises and Silversea, and also holds a 50% joint venture interest in TUI Cruises. The group has been expanding its land-based destination portfolio through Perfect Day and Royal Beach Club developments and is due to enter river cruising with Celebrity River Cruises in 2027.
Adding Sandals and Beaches therefore takes Royal Caribbean into a different part of the holiday market, with guests able to book complete land-based resort stays independently of a cruise.
The companies said they intend to explore ways to broaden distribution, increase guest engagement and make holidays across their respective portfolios easier for travellers to discover. However, they have not announced specific cruise-and-stay packages, reciprocal loyalty benefits or other combined products at this stage.
Royal Caribbean Group chairman and CEO Jason Liberty described the agreement as the next stage in the company’s efforts to build a wider holiday platform.
“Our partnership with Sandals and Beaches Resorts is an important next step on that journey – bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world,” Liberty said.
“The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy.”
Sandals Resorts was founded by Gordon “Butch” Stewart in Jamaica in 1981 and has grown into one of the Caribbean’s best-known all-inclusive resort operators.
His son, Adam Stewart, executive chairman of Sandals Resorts and Beaches Resorts, said the investment would give the company greater scope to accelerate its expansion.
“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.”
What Changes For Royal Caribbean And Sandals Guests?
There will be no immediate operational change for customers of either company as a result of the agreement.
Existing reservations and loyalty programmes will continue as normal, while Sandals and Beaches resorts and Royal Caribbean Group’s cruise operations will also continue operating as usual. The transaction itself still has to complete before Royal Caribbean formally acquires its 50% interest.
The joint venture will be governed by a board under the shared leadership of Liberty and Stewart. Stewart will remain executive chairman of Sandals and Beaches Resorts and will continue to play a leadership role in its long-term strategic development.
Although the combination creates clear possibilities for closer links between cruises and resort stays, neither company has confirmed how that could ultimately work for guests.
Potential developments could include closer marketing or distribution between the businesses, but cruise-and-stay packages, Sandals or Beaches shore excursions and cross-company loyalty benefits have not been announced and should not yet be considered part of the agreement.
For Royal Caribbean, the immediate significance is broader. The company has spent recent years developing a holiday portfolio that extends beyond conventional ocean cruises.
Perfect Day at CocoCay and the expanding Royal Beach Club concept have already increased its investment in land-based experiences, while Celebrity River Cruises will move the group into another form of cruising from 2027.
The Sandals deal goes further by placing Royal Caribbean directly into the multi-night all-inclusive resort business through an established Caribbean operator.
For Sandals and Beaches, the companies say the partnership will provide additional resources to support further expansion while retaining the existing brands and operations.
The agreement remains subject to approvals and other closing conditions, meaning Royal Caribbean does not yet own its proposed 50% stake. If the transaction completes as planned, that is expected to happen in early 2027.
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