A day after the Financial Times reported that Royal Caribbean Group was nearing a deal involving Sandals Resorts International, the two Caribbean tourism giants have officially announced a landmark partnership.
Under the agreement announced Wednesday, September 23, Royal Caribbean Group will invest approximately US$3 billion for a 50% equity interest in Sandals and Beaches Resorts, creating a 50-50 joint venture. The investment implies a valuation of roughly US$6 billion and represents a forward EBITDA multiple of approximately 10 times. Royal Caribbean has secured committed debt financing from Morgan Stanley to fund the investment.
The announcement clarifies reports that emerged Tuesday. The Financial Times had reported that Royal Caribbean was close to acquiring a majority stake in Sandals at a valuation exceeding US$6 billion, while other reporting pointed to a US$3-billion investment for 50%. The confirmed agreement is for the 50% equity investment.
The partnership brings the Jamaica-born Sandals and Beaches brands together with Royal Caribbean Group’s portfolio, which includes Royal Caribbean International, Celebrity Cruises and Silversea. The companies say they plan to accelerate the expansion of Sandals and Beaches while exploring greater distribution and engagement across their respective customer bases.
Sandals Executive Chairman Adam Stewart, whose father Gordon “Butch” Stewart founded the company in Montego Bay in 1981, addressed the deal in an Instagram post, stressing that the identity of the Jamaican-founded company will remain intact.
“Sandals will remain Sandals. Beaches will remain Beaches. Our home is the Caribbean,” Stewart wrote, adding that the company’s employees, travel advisors and longstanding approach to hospitality would remain central to the business.
Stewart described the agreement as an opportunity to expand rather than abandon the company’s roots: “What does change is the scale of what we can imagine next. This partnership gives us greater capacity to grow faster, reach more people and take two brands born in the Caribbean to more places around the world.”
In the companies’ formal announcement, Stewart said the agreement builds on his father’s belief that a Caribbean company could compete on the world stage. He said the partnership gives Sandals the ability to grow faster alongside a company that shares its emphasis on hospitality, long-term investment and enduring brands.
Stewart will remain Executive Chairman of Sandals and Beaches Resorts and will continue to guide their long-term strategic growth. The joint venture will be governed by a board under the shared leadership of Stewart and Royal Caribbean Group Chairman and CEO Jason Liberty. Existing reservations, loyalty programmes and resort and cruise operations are expected to continue as usual.
The transaction is subject to customary approvals and closing conditions and is expected to close in early 2027.
