Royal Caribbean Sandals Resorts marks a major strategic partnership between the global cruise group and the Jamaican all-inclusive hotel operator. Royal Caribbean Group will acquire a 50% stake in Sandals Resorts for approximately $3 billion. The transaction values the business at around ten times expected EBITDA and represents Royal Caribbean’s largest acquisition to date.

The deal aims to support Sandals’ international expansion beyond the Caribbean. The group currently operates around 20 all-inclusive properties under the Sandals Resorts and Beaches Resorts brands. Therefore, the partnership could provide the Jamaican operator with additional resources to enter new destinations. At the same time, Royal Caribbean seeks to strengthen its position as an integrated leisure company.

The transaction also follows Royal Caribbean’s broader expansion beyond traditional ocean cruising. In 2027, the group plans to enter the river cruise segment with the launch of Celebrity River Cruises. Meanwhile, the investment in Sandals adds an established all-inclusive hospitality platform to its portfolio. This strategy could create opportunities to connect cruise and resort experiences across different markets.

Royal Caribbean Sandals Resorts will also involve closer integration between the companies’ loyalty programmes. A joint venture will oversee the partnership through a board chaired by Adam Stewart, Sandals’ executive chairman. Jason Liberty, president and CEO of Royal Caribbean Group, will also join the leadership structure. Stewart will continue to lead the Sandals and Beaches Resorts brands.

The transaction follows previous attempts to sell Sandals. According to the Financial Times, the company explored potential deals between 2017 and 2019, although those discussions did not result in a transaction. The current agreement therefore marks a significant development in the group’s ownership structure.

Morgan Stanley is financing the transaction, which the parties expect to complete by early 2027. Overall, the partnership gives Sandals access to a major global leisure group while allowing Royal Caribbean to expand its hospitality presence beyond the cruise sector.