$3bn Deal: Royal Caribbean Takes Over Sandals in Caribbean Power Play
Royal Caribbean Group secures 50% stake in Sandals and Beaches Resorts for $3bn, valuing the luxury chain at over $6bn.
Royal Caribbean Group has struck a landmark $3 billion deal to acquire a 50 percent equity interest stake in Sandals and Beaches Resorts, marking its boldest move yet into the luxury all-inclusive hotel sector. The agreement, confirmed on September 23, values the Caribbean-based chain at over $6 billion and positions Royal Caribbean as a dominant player in both cruise and land-based vacations.
Royal Caribbean Group, which operates 71 ships with approximately 175,000 berths, will gain control of Sandals’ portfolio of 17 couples-only resorts and three family-focused Beaches properties. The deal also includes two private island destinations in the Bahamas and Panama, expanding Royal Caribbean’s footprint in the region where it already derives the majority of its revenue.
Jason Liberty, chairman and CEO of Royal Caribbean Group, framed the acquisition as a strategic expansion of its vacation ecosystem. “We have been building a vacation platform that brings joy to millions of people around the world,” Liberty said. “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.”
Royal Caribbean
“certain members of 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.”
Jason Liberty·Chairman and CEO, Royal Caribbean Group
Why Royal Caribbean Is Betting Big on Sandals Resorts
The acquisition comes as Royal Caribbean faces slowing demand in its core cruise business, particularly in Europe, and heightened competition in the Caribbean. Analysts warn of overcapacity in the region, driven by the rapid construction of mega-ships, including 13 vessels on order for Royal Caribbean, representing 43,230 berths for delivery between 2027 and 2032. By diversifying into resorts, the company aims to offset these pressures and create new revenue streams through cross-selling.
Sandals, founded in Jamaica in 1981 by developer Gordon “Butch” Stewart, has long been a pioneer in luxury all-inclusive vacations. Its resorts span eight Caribbean nations, including Jamaica, the Bahamas, Saint Lucia, and Barbados, while the Beaches brand, launched in 1997, caters to families in Jamaica and Turks & Caicos. The chain’s loyal customer base and premium positioning make it an attractive asset for Royal Caribbean, which operates premium and luxury cruise brands like Celebrity Cruises and Silversea.
Adam Stewart, executive chairman of Sandals and son of the late founder, emphasized the alignment of the two companies’ visions. “As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations,” Stewart said. The deal is expected to close in early 2027, pending regulatory approval.
What the Sandals Deal Means for the Caribbean Travel Market
The transaction is not the first time a cruise line has ventured into hotels, but it is one of the most ambitious. In the 1980s, Carnival acquired the Cable Beach Resort in the Bahamas, rebranding it as the Crystal Palace Hotel and Casino. Despite efforts to integrate cruise and hotel packages, the venture struggled and was sold in 1994. More recently, luxury hotel brands like Ritz-Carlton and Four Seasons have launched ultra-luxury cruise ships, blurring the lines between land and sea vacations.
For Royal Caribbean, the Sandals acquisition offers a hedge against market volatility. The company’s growth forecasts for 2026 were recently downgraded due to economic uncertainties in the U.S. and weaker demand in Europe. By owning a stake in Sandals, it gains direct access to high-margin resort revenue and the ability to bundle cruise and hotel packages, a strategy that could prove lucrative as travelers seek seamless vacation experiences.
The deal also reflects the evolving dynamics of the Caribbean tourism sector. With cruise capacity expanding rapidly, land-based resorts like Sandals provide a counterbalance, offering travelers a different kind of luxury experience. Royal Caribbean’s move may prompt rivals like Carnival and Norwegian Cruise Line to explore similar acquisitions, potentially reshaping the competitive landscape.
Sandals’ journey to this deal has been complex. The chain was first offered for sale in 2019 as part of estate planning for Gordon “Butch” Stewart, who died in 2021. A legal battle among his heirs delayed the process, but the sale was revived in 2025 when the company retained investment bankers. Under the terms of the agreement, certain members of the Stewart family will retain shares, mirroring Royal Caribbean’s 2018 acquisition of Silversea Cruises, where it later bought out the remaining stakes.
As the transaction moves toward closing, industry observers will be watching closely to see whether Royal Caribbean can succeed where others have failed, bridging the gap between cruise and resort vacations to create a truly integrated travel empire.
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