Royal Caribbean Group Joins Forces With Sandals Resorts In $3 Billion Deal To Redefine Caribbean Luxury Travel

The combination of cruise, private destination and all-inclusive resort vacations is now a reality, thanks to a groundbreaking new agreement between Royal Caribbean Group and Sandals Resorts. This new partnership will give Royal Caribbean Group a 50% stake in the Sandals and Beaches Resorts. With this new partnership, two of the most renowned travel and leisure resorts will come together to offer the widest selection of vacations to travelers throughout the world.

The partnership brings together Sandals and Beaches Resorts’ more than 40 years of expertise in luxury all-inclusive hospitality with Royal Caribbean Group’s global cruise network and extensive vacation portfolio. Through this collaboration, travellers will gain access to a wider range of holiday choices, connecting premium resorts, cruise journeys and private island destinations through a single ecosystem.

The move represents a major expansion for Royal Caribbean Group beyond traditional cruising, allowing the company to strengthen its presence in the wider global holiday market while supporting the continued growth ambitions of Sandals and Beaches Resorts across the Caribbean.

A New Era for Caribbean Travel as Cruise and Resort Experiences Come Together

The partnership marks a significant shift in the way travellers may experience Caribbean holidays, bringing together two companies with deep connections to the region. Sandals and Beaches Resorts have built a strong reputation for delivering luxury all-inclusive escapes across several Caribbean destinations, while Royal Caribbean Group has developed a global reputation through its cruise brands and private destination experiences.

By combining these strengths, the companies aim to create a broader collection of holiday experiences that meets changing traveller expectations. Modern holidaymakers are increasingly seeking flexible journeys that combine different types of experiences, from relaxing beachfront stays to immersive cruise adventures.

The collaboration will connect Sandals and Beaches Resorts with Royal Caribbean Group’s wider vacation portfolio, which includes major cruise brands such as Royal Caribbean, Celebrity Cruises and Silversea. It also includes private destinations, river cruising offerings and an established loyalty programme designed to engage travellers across multiple holiday categories.

The partnership is expected to create new opportunities for guests to discover Caribbean destinations in different ways while allowing both companies to expand their reach among international travellers.

Royal Caribbean Expands Beyond Cruises Into the Growing Resort Market

The agreement represents Royal Caribbean Group’s entry into a closely related sector of the travel industry as demand for resort holidays continues to increase worldwide. The global vacation economy represents an estimated $2 trillion market, with travellers increasingly looking for premium experiences that combine convenience, comfort and unique destinations.

Through the joint venture, Royal Caribbean Group will expand its role within the holiday sector by adding luxury all-inclusive resorts to its existing cruise and destination offerings.

The investment will support Sandals and Beaches Resorts as they continue their expansion plans across the Caribbean. The partnership will focus on increasing distribution opportunities, improving guest engagement and making it easier for travellers to explore experiences available across both companies’ platforms.

The collaboration also provides the opportunity to create new connections between cruise travellers and resort guests, offering more choices for visitors planning Caribbean holidays.

Sandals and Beaches Resorts Continue Caribbean Hospitality Expansion

Sandals and Beaches Resorts have become internationally recognised for their all-inclusive approach, offering guests accommodation, dining, activities and entertainment as part of their holiday experience.

The partnership is expected to provide additional resources to support future resort development and strengthen the brands’ position in the competitive Caribbean tourism market.

The joint venture will include Sandals and Beaches Resorts’ existing collection of properties across the Caribbean. Future opportunities will be explored to broaden the portfolio and introduce more travellers to the brands’ hospitality offerings.

The agreement also reflects the growing importance of the Caribbean as a global tourism destination. With increasing demand for luxury escapes, beachfront holidays and experience-led travel, investment in accommodation and tourism infrastructure remains a key focus across the region.

Leadership Structure to Support Long-Term Growth Strategy

The newly formed partnership will operate under a shared governance structure with leadership responsibilities divided between both organisations.

Sandals and Beaches Resorts will continue to maintain its existing operational structure, while additional resources from the partnership will support future growth initiatives.

The agreement ensures that current guest experiences will continue without disruption. Existing reservations, loyalty programmes, resort operations and cruise services will remain unchanged as the companies work towards completing the transaction.

The leadership structure will focus on maintaining the heritage and identity of Sandals and Beaches Resorts while introducing new opportunities created through Royal Caribbean Group’s global travel network.

Royal Caribbean Group Acquires 50% Stake Through $3 Billion Investment

Under the terms of the agreement, Royal Caribbean Group will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion.

The transaction represents an estimated forward EBITDA multiple of around 10 times. Financing for the investment has been secured through committed debt arrangements supported by Morgan Stanley.

The deal is expected to close in early 2027, subject to regulatory approvals and other standard closing conditions. Following completion, the partnership is expected to contribute positively to Royal Caribbean Group’s earnings growth.

The investment highlights the increasing value of integrated holiday experiences, where travellers can access multiple forms of leisure through connected travel platforms.

Strategic Partnership Signals Strong Future for Caribbean Tourism

The alliance between Royal Caribbean Group and Sandals Resorts reflects a wider transformation taking place across the global tourism industry. Travel companies are increasingly seeking ways to provide complete holiday ecosystems rather than focusing on a single travel category.

By combining cruise experiences, private destinations and luxury all-inclusive resorts, the partnership creates a larger platform capable of serving travellers at different stages of their holiday journey.

For the Caribbean tourism sector, the agreement represents a major investment commitment that could support resort expansion, strengthen destination visibility and create new opportunities for tourism growth.

The collaboration between two established travel brands is expected to influence how future Caribbean holidays are planned, marketed and experienced, offering travellers more connected and diverse vacation options.

Financial and legal advisory support for the transaction has been provided by several international firms. Advisors supporting Sandals Group included BofA Securities and PJT Partners for financial matters, while Latham & Watkins and Jones Day provided legal guidance. Royal Caribbean Group received financial advisory support from Perella Weinberg Partners and Morgan Stanley, with Kirkland & Ellis LLP acting as legal advisor.