Royal Caribbean Group and Sandals Resorts have signed an agreement to form a joint venture in the all-inclusive resort sector, with Royal Caribbean Group acquiring a 50% stake. The partnership brings together Sandals and Beaches Resorts’ more than four decades of expertise in Caribbean hospitality with Royal Caribbean Group’s broader vacation platform.
The partnership unites two leading names in the travel industry. Sandals and Beaches’ expertise in all-inclusive resorts will be combined with Royal Caribbean Group’s vacation platform, which includes Royal Caribbean, Celebrity Cruises and Silversea, a portfolio of private destinations, a new river cruise offering and an industry-first loyalty program connecting different vacation experiences. Both companies also share a long history in the Caribbean and a strong connection to the communities where they operate. Together, they aim to offer travelers an extensive choice of cruises, private destinations and resort experiences across more vacation occasions.
A Broader Presence in the Global Vacation Market
The joint venture moves Royal Caribbean Group into an adjacent category within the broader vacation market, increasing its participation in the global vacation industry, estimated at approximately $2 trillion. For Sandals and Beaches Resorts, the partnership provides additional resources and opportunities to meet growing international demand for their all-inclusive resort experiences.
The joint venture will include Sandals and Beaches’ collection of premier all-inclusive resorts across the Caribbean. The companies will also explore ways to broaden distribution, deepen guest engagement and make it easier for travelers to discover vacation experiences across both portfolios.
“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,” said Jason Liberty, Chairman and CEO of Royal Caribbean Group. “We have 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. We are bringing together two iconic, leading vacation companies to further strengthen one of the world’s most admired resort portfolios.”
Liberty also praised the Stewart family for building strong and beloved brands. “We are honored to build on that legacy. Together, we see tremendous opportunity to bring Sandals and Beaches Resorts to more travelers and continue turning the vacation of a lifetime into a lifetime of vacations.”
Building on the Sandals Legacy
Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts, also highlighted the significance of the partnership. His 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,” Adam Stewart said. He described the partnership as a natural next step in that journey. “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.”
Together, the companies intend to introduce more guests to Sandals and Beaches Resorts while creating new experiences for those who have made the resorts part of their lives for decades. Stewart stressed that future development will remain rooted in the principles that have defined Sandals and Beaches. “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 joint venture will be governed by a board under the shared leadership of Adam Stewart and Jason Liberty. Stewart will continue to play a key role in shaping the long-term strategy of Sandals and Beaches Resorts as Executive Chairman.
Existing Reservations and Operations Remain Unchanged
For travelers, there will be no immediate changes. Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual. The partnership will provide additional resources and opportunities to develop future vacation experiences across the two portfolios.
Under the terms of the agreement, Royal Caribbean Group will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion. This represents a forward EBITDA multiple of approximately 10x. Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment.
The transaction is expected to close in early 2027, subject to customary approvals and closing conditions. Royal Caribbean Group expects the transaction to be accretive to earnings next year.
Pictures courtesy of Royal Caribbean Group
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