Royal Caribbean Is Buying Into Sandals, and the Land Is Part of the Deal

Royal Caribbean Group plans to buy a 50 percent stake in Sandals and Beaches Resorts for about $3 billion, roughly 10 times forward EBITDA. Chairman and CEO Jason Liberty announced the deal on the company’s third-quarter earnings call, calling it a way to keep guests inside the company’s ecosystem wherever they vacation.

Liberty said Royal Caribbean currently captures only 20 to 25 percent of guests’ annual vacation spending. He described the deal as immediately accretive to earnings while staying within leverage targets. It is expected to close in early 2027 and will be recorded as an equity method investment.

The portfolio includes 18 properties and more than 1,000 acres of undeveloped Caribbean land. A development plan funded by the resorts’ own cash flow calls for three new resorts and room expansions, and CFO Naftali Holtz said the land was included in the purchase price.

Liberty dismissed speculation that cruise ships would call at the resorts, saying each brand will keep its own identity. Instead, Royal Caribbean plans to contribute revenue management, loyalty, data, distribution and purchasing scale, with several hundred million dollars in synergies expected over time. Near-term focus stays on growing the Caribbean footprint, though the brands could eventually expand globally.

Sources: Cruise Industry News