Royal Caribbean Group is expanding beyond cruises and into the all-inclusive resort market through a planned $3 billion investment in Sandals Resorts and Beaches Resorts.
The cruise company and Sandals Resorts announced Sept. 23 that they have agreed to form a joint venture, with Royal Caribbean Group acquiring a 50-percent equity interest in the resort company. The transaction is expected to close in early 2027.
For cruisers, the partnership could mean a broader range of vacation choices — including cruises, private destinations, river cruises, and Sandals or Beaches all-inclusive resorts — all within a Royal Caribbean Group one-stop-shop.
Potential benefits include:
- More one-stop vacation planning: Travelers may eventually be able to compare or book cruises and all-inclusive resort stays through more closely connected platforms.
- Easier combined trips: New packages might pair a cruise with a pre-/post-cruise resort stay, although no specific packages have been announced.
- More loyalty benefits: Royal Caribbean Group and Sandals Resorts may explore ways to share points between their loyalty programs, but the companies have not announced changes to existing programs.
- Greater resort growth: The $3 billion investment could give Sandals and Beaches additional resources for new properties, renovations, services, or expanded experiences across the Caribbean region.
The partnership also gives the cruise giant Royal Caribbean Group an entry into another major segment of the travel industry, expanding its vacation offerings beyond cruises, private destinations, and river cruising.
RELATED: This Popular Jamaican Resort Is Making Big Changes
“For nearly 60 years, we’ve reimagined what a vacation can be, constantly expanding the ways we inspire our guests to explore, connect and create lifelong memories,” says Jason Liberty, chairman and CEO of Royal Caribbean Group. “We’ve been building a vacation platform that brings joy to millions of people around the world and creates meaningful relationships that last with our guests. Our partnership with Sandals and Beaches Resorts is an important next step on that journey. The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy. Together, we see tremendous opportunity to expand the reach of Sandals and Beaches Resorts and continue turning the vacation of a lifetime into a lifetime of vacations.”
The joint venture is intended to support the expansion of Sandals and Beaches Resorts, while giving travelers more ways to combine or choose among cruise, resort, and private-destination vacations.
“My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality. Today is proof of how far that vision can go,” says Adam Stewart, executive chairman of Sandals Resorts and Beaches Resorts. “This partnership is the natural next step in building on that conviction. As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations while creating opportunities for our team members, travel advisor partners and the communities we call home. The future has never been brighter, and I know this moment would make my father incredibly proud.”
Jason Liberty (L) and Adam Stewart. | Photo: Royal Caribbean Group
The joint venture will be overseen by a board led jointly by Stewart and Liberty. Stewart will remain executive chairman of Sandals and Beaches Resorts and will continue guiding the company’s long-term strategy.
Existing reservations, loyalty programs, resort operations, and cruise operations are expected to continue as usual. The companies say the partnership will provide additional resources for future growth.
Royal Caribbean Group will pay approximately $3 billion for its 50-percent stake, representing a forward EBITDA multiple of approximately 10 times, according to the companies. The group has secured committed debt financing from Morgan Stanley to fund the investment and expects the transaction to add to earnings in 2027.
Royal Caribbean Group includes the well-known brands Royal Caribbean, Celebrity Cruises, and luxurious Silversea, as well as private destinations and a river-cruise business. Sandals Resorts operates adults-only all-inclusive resorts, while Beaches Resorts caters primarily to traveling families.
