Royal Caribbean Group will acquire a 50% equity stake in Sandals and Beaches Resorts for approximately $3 billion, a deal that values the Caribbean all-inclusive operator at roughly 10x forward EBITDA and is expected to close in early 2027, subject to regulatory approvals.

The transaction, announced Tuesday, gives Royal Caribbean Group (NYSE: RCL) a foothold in an adjacent vacation category while accelerating the expansion of a resort portfolio with more than four decades of Caribbean leadership. Morgan Stanley has committed debt financing to fund the investment, and the company expects the deal to be accretive to earnings next year.

The joint venture pairs Sandals and Beaches' all-inclusive expertise with Royal Caribbean Group's vacation platform, which spans Royal Caribbean, Celebrity Cruises and Silversea — 71 ships sailing to more than 1,000 destinations across all seven continents — plus a 50% joint venture interest in TUI Cruises. The Group also operates private destinations under its Perfect Day and Royal Beach Club collections and enters river cruising in 2027 with Celebrity River Cruises.

Operator-level scope

The partnership covers Sandals and Beaches' collection of premier all-inclusive properties across the Caribbean. Sandals operates adults-only beachfront resorts across Jamaica, Antigua, Saint Lucia, The Bahamas, Barbados, Grenada, Curaçao, and Saint Vincent and The Grenadines. Beaches, the family all-inclusive brand, runs resorts in Negril, Jamaica and Turks and Caicos, with new locations planned for Exuma in The Bahamas, Barbados, Runaway Bay in Jamaica, and Saint Vincent and The Grenadines.

Governance will sit under a board with shared leadership between Adam Stewart and Jason Liberty. Stewart maintains his role as Executive Chairman of Sandals and Beaches Resorts, guiding long-term strategic growth. Existing reservations, loyalty programs, resort operations and cruise operations continue unchanged, with the partnership adding resources for future expansion.

For Royal Caribbean Group, the move grows its participation in the approximately $2 trillion global vacation market and answers rising demand for Sandals and Beaches inventory. The companies said they will explore broadening distribution, deepening guest engagement, and making it easier for travelers to discover experiences across both portfolios — a play that leverages Royal Caribbean's industry-first loyalty program to cross-sell cruise, private destination and resort stays.

Executive commentary

"For nearly 60 years, we've reimagined what a vacation can be, constantly expanding the ways we inspire our guests to explore, connect and create lifelong memories," said Jason Liberty, Chairman and CEO of Royal Caribbean Group. "The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy. 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."

Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts, tied the deal to the founding vision of his father, Gordon "Butch" Stewart. "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," he said. "As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations while creating opportunities for our team members, travel advisor partners and the communities we call home."

Deal mechanics and advisors

BofA Securities and PJT Partners served as financial advisors to the Sandals Group, with Latham & Watkins and Jones Day as legal advisors. Perella Weinberg Partners and Morgan Stanley advised Royal Caribbean Group, with Kirkland & Ellis LLP as legal counsel.

Beyond the resorts, the brands' nonprofit arm, Sandals Foundation, runs education, community and environment programs across the Caribbean.

With committed financing in place, an expected early-2027 close and earnings accretion projected for next year, the partnership positions both operators to scale all-inclusive capacity across the Caribbean while Royal Caribbean Group widens its footprint across the full vacation value chain.