Royal Caribbean has agreed to pay US$3 billion for a 50 per cent stake in Sandals Resorts International, in its biggest transaction to date and a significant move into land-based resort ownership.
The agreement, announced on 23 September 2026, values Sandals at US$6 billion total enterprise value. Royal Caribbean will hold its interest through a newly created joint venture that will control the Caribbean resort group’s portfolio of 20 properties. Members of the Stewart family, which founded Sandals, will retain the other 50 per cent, giving both sides joint control.
The portfolio includes the couples-focused Sandals Resorts brand and the family-oriented Beaches Resorts brand. Its properties are located across Caribbean destinations including Barbados, Saint Lucia and Saint Vincent.
The transaction is expected to close in early 2027, subject to customary approvals and closing conditions. Royal Caribbean said the deal is expected to be accretive to earnings next year. The companies have not set out further details of the financial structure or payment terms beyond the US$3 billion purchase price and US$6 billion enterprise valuation.
For Royal Caribbean, the agreement adds resort ownership to a business built around cruise brands including Royal Caribbean, Celebrity Cruises and Silversea. The group also has private destinations, a new river cruising offering and an industry-first loyalty programme.
The deal gives Royal Caribbean a stake in accommodation on shore in the same broad Caribbean market served by its cruise operations. The transaction leaves the founding family as an equal owner, rather than transferring full ownership of Sandals to the cruise operator. The joint venture structure places the two parties together at the centre of decisions over the 20-resort portfolio.
Royal Caribbean and the Stewart family have not disclosed plans for integrating Sandals with Royal Caribbean’s existing businesses. They have also not detailed any expected synergies or cost savings. The agreement nonetheless expands Royal Caribbean’s footprint beyond ships and private destinations into resort ownership across the Caribbean.
Kirkland & Ellis advised Royal Caribbean Group on the agreement to form the partnership with Sandals Resorts.
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