Royal Caribbean is expanding its portfolio of land-based destinations by entering into a partnership with Sandals Resorts in a deal announced Wednesday.
The cruise line will acquire a 50% equity stake in Sandals and Beaches Resorts for $3 billion, with the transaction expected to close in early 2027. According to Royal Caribbean Group, the partnership will include Sandals and Beaches’ collection of 20 all-inclusive properties across the Caribbean.
The companies will explore opportunities to “broaden distribution, deepen guest engagement and make it easier for travelers to discover vacation experiences offered across both portfolios.”
“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,” said Jason Liberty, Royal Caribbean’s chairman and CEO, in a news release. “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.”
Founded in 1981 by the late Jamaican entrepreneur Gordon “Butch” Stewart in Montego Bay, Sandals currently operates 17 resorts for adults across the Caribbean, including Jamaica, Saint Lucia, the Bahamas, Barbados, Antigua, Curacao, Grenada and Saint Vincent. Beaches operates family-friendly resorts in Turks & Caicos and Jamaica.
Adam Stewart, the founder’s son, now serves as executive chairman of Sandals Resorts and Beaches Resorts.
“The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy,” Liberty’s statement continues. “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.”
Royal Caribbean Group said it has secured committed debt financing from Morgan Stanley to fund the investment. The deal values the Caribbean resort chain at $6 billion and is expected to boost growth for both companies, according to CNBC. Royal Caribbean Group is the most valuable cruise line company in the world by market capitalization, approximately $61.5 billion.
The cruise line also shared that the joint venture will be governed by a board led by Stewart and Liberty. Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, and the partnership will bring additional resources to support future opportunities.
“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,” said Adam Stewart in a news release. “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.”
Royal Caribbean has been working to diversify its offerings beyond ocean cruising by introducing river cruising with Celebrity starting in 2027, as well as expanding land-based destinations, such as beach clubs in the Bahamas, Greece, Mexico and the South Pacific.
“We’re entering all-inclusives for the same reason we entered river cruising,” Liberty told Travel Weekly. “Whether we do it on water or land, we want to provide a lifetime of vacations, and that provides collective value for all stakeholders: customers, employees, the communities that support us and investors.”
On Royal Caribbean’s most recent earnings call in July, Liberty announced that the timeline for the cruise line’s planned Perfect Day Mexico had shifted after the project was halted by Mexican authorities due to environmental concerns.
Liberty said Royal Caribbean continues to “maintain a constructive dialogue with community leaders and public officials as we work to develop a tourism destination that will create long-term opportunities for the region, for Mexico, and for our guests.” Originally slated to open in late 2027, the destination’s opening date is unclear.
Meanwhile, Sandals is investing $200 million in three of its Jamaican resorts — Sandals Montego Bay, Sandals Caribbean Cay and Sandals Montego Bay — following Hurricane Melissa last fall. All three are expected to reopen by the end of the year.