Royal Caribbean Is Expanding Beyond Cruises With $3 Billion Sandals and Beaches Deal

Royal Caribbean Group is making one of its biggest moves beyond cruising yet, with a deal that will give the company a major foothold in the Caribbean all-inclusive resort market.

The approximately $3 billion agreement brings together two major names in Caribbean vacations. And while it could eventually create some interesting possibilities for travelers, there won’t be any immediate changes for guests.

Royal Caribbean Agrees to Buy 50% of Sandals and Beaches Resorts

Royal Caribbean Group has agreed to acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion.

Aerial view of a Sandals resort with a large swimming pool, palm trees, and a white-sand Caribbean beach. — Photo Credit: Sandals Resorts

The agreement was signed at Royal Caribbean Group’s headquarters in Miami and announced on September 23, 2026. The transaction is expected to close in early 2027, although it still needs to clear customary approvals and closing conditions.

The existing Sandals ownership will retain the other half, creating an equal partnership rather than a full takeover.

That’s an important distinction because initial reports about the negotiations suggested Royal Caribbean could be looking at a majority stake, potentially leading to full ownership. The deal that has now been announced looks quite different.

Royal Caribbean said the approximately $3 billion investment represents around 10 times the resorts’ expected EBITDA, a measure of operating earnings before interest, taxes, depreciation, and amortization. Morgan Stanley has also provided committed debt financing to fund the investment.

Royal Caribbean expects the transaction to add to its earnings in 2027, assuming the deal closes as planned.

The Deal Takes Royal Caribbean Beyond Cruising

The investment is another major step in Royal Caribbean Group’s expansion beyond traditional ocean cruises.

The company currently operates 71 ships across its three wholly owned cruise brands: Royal Caribbean, Celebrity Cruises, and Silversea. It also holds a 50% joint venture interest in TUI Cruises.

But ships are becoming just one part of a much wider vacation business.

Royal Caribbean has invested heavily in land-based destinations, including Perfect Day CocoCay and its growing Royal Beach Club concept. The company is also moving into river cruising, with Celebrity River Cruises due to launch in 2027.

This image captures the vibrant and exciting atmosphere of Perfect Day at CocoCay, a private island resort. The scene showcases colorful beach cabanas over turquoise waters, lush greenery, and a sandy beach filled with rows of lounge chairs. In the background, a water park with towering slides and a large cruise ship docked at the island are visible. A bright orange and pink hot air balloon adds a playful touch as it floats in the clear blue sky, completing the perfect tropical vacation setting.

The Sandals and Beaches deal takes that expansion in another direction. Instead of a private destination visited during a cruise, these are multi-night, all-inclusive resorts where guests can spend their entire vacation on land.

For Royal Caribbean, that means having a direct stake in an established Caribbean resort business alongside its growing cruise and destination portfolio.

What Sandals and Beaches Bring to the Partnership

Sandals has been operating all-inclusive Caribbean resorts for more than four decades. The company was founded in Jamaica in 1981 by Gordon “Butch” Stewart and has since become one of the best-known resort brands in the region.

Its adults-only Sandals resorts operate across Jamaica, Antigua, Saint Lucia, the Bahamas, Barbados, Grenada, Curaçao, and Saint Vincent and the Grenadines. Beaches Resorts, meanwhile, caters to families.

Royal Caribbean Group Chairman and CEO Jason Liberty described the partnership as another step in the company’s push to build a broader vacation business.

“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,” Liberty said.

“The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy.”

Adam Stewart, executive chairman of Sandals Resorts and Beaches Resorts and the son of founder Gordon Stewart, said the investment would give the company more room to grow.

“This partnership is the natural next step in building on that conviction. 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.”

What the Deal Means for Guests

For now, guests shouldn’t expect any immediate changes as a result of the deal.

Existing reservations and loyalty programs will continue as normal, while Sandals and Beaches resorts and Royal Caribbean Group’s cruise operations will continue operating as usual.

Two Royal Caribbean cruise ships anchored side by side offshore near a white-sand beach with palm trees and turquoise water.

The companies have said they want to explore ways to broaden distribution, increase guest engagement, and make vacations across their portfolios easier for travelers to discover.

However, neither company has announced exactly what that will mean for guests.

There are currently no confirmed cruise-and-stay packages combining Royal Caribbean cruises with Sandals or Beaches resorts. There have also been no announcements about shared loyalty benefits, Sandals or Beaches shore excursions, or other combined products.

Those ideas may seem like natural possibilities given the two companies involved, but they’re not part of the announced agreement at this stage.

For guests with an existing Royal Caribbean cruise or Sandals or Beaches vacation booked, it’s essentially business as usual.

Sandals Will Continue Under Its Existing Leadership

The partnership doesn’t mean Royal Caribbean will take over the day-to-day running of Sandals and Beaches Resorts.

The new joint venture will be governed by a board under the shared leadership of Royal Caribbean Group Chairman and CEO Jason Liberty and Sandals Resorts and Beaches Resorts Executive Chairman Adam Stewart.

Stewart will remain executive chairman of Sandals and Beaches Resorts and will continue to play a leadership role in the company’s long-term strategy.

The existing Sandals and Beaches brands and operations will also remain in place, with the partnership providing additional resources to support future growth.

Importantly, Royal Caribbean doesn’t own its proposed 50% stake yet. The transaction remains subject to the necessary approvals and other closing conditions.

If everything proceeds as planned, the deal is expected to close in early 2027.