MIAMI — Royal Caribbean Group has acquired a 50% stake in Sandals and Beaches Resorts, in a deal worth US$3 billion.

The two companies announced the deal today. The transaction is expected to close in early 2027, subject to customary approvals and closing conditions.

“My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality. Today is proof of how far that vision can go,” said Adam Stewart, Executive Chairman, Sandals Resorts and Beaches Resorts.

Stewart and Jason Liberty, Chairman and CEO, Royal Caribbean Group, say the new partnership pairs Sandals and Beaches’ all-inclusive resort expertise with Royal Caribbean Group’s vacation platform, including Royal Caribbean, Celebrity Cruises and Silversea, private island destinations and river cruising. 

Liberty said the joint venture expands Royal Caribbean Group into an adjacent vacation category and meets the growing global demand for Sandals and Beaches Resorts by accelerating their expansion. 

The new partnership brings together “two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world,” said Liberty. “The Stewart family has created powerful and beloved brands, and we are honoured 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.”

The joint venture includes all Sandals and Beaches properties across the Caribbean, with an eye to expansion. 

Liberty said the companies will explore opportunities to broaden distribution, deepen guest engagement and make it easier for travellers to access vacation experiences offered across both portfolios. Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment.

“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. Together, we will introduce more guests to Sandals and Beaches Resorts while creating even more extraordinary experiences for those who have made our resorts part of their lives for decades,” said Stewart.

Stewart added: “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. The future has never been brighter, and I know this moment would make my father incredibly proud.”

The joint venture will be governed by a board under the shared leadership of Stewart and Liberty. 

Stewart will maintain a leadership role in guiding the company’s long-term strategic growth as Executive Chairman of Sandals and Beaches Resorts. 

Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, with the partnership bringing additional resources to support future opportunities.

REACTION FROM THE TRADE

Travelweek reached out to a few of Sandals Resorts International’s biggest fans in the Canadian travel industry – and they are legion – for their reactions to this morning’s news.

“While the announcement was somewhat unexpected, I view the merger as a positive development, particularly given that it brings together two of the suppliers with whom we have the closest and most established relationships. Both Sandals and Royal Caribbean have demonstrated a strong alignment with our business through the level of support they provide to our agency and their commitment to delivering a positive experience for our clients. We value these partnerships and the role they play in supporting our business, and we look forward to seeing the opportunities this new relationship may create for our agency, our clients, and the broader travel industry.”

Lois Barbour

Travel Time

St. John’s, NL

“The market has changed, travellers have changed and the only thing we can really expect in this industry is continued change. I’m optimistic about what this partnership could mean for Sandals and Beaches. I see great potential for continued investment across the 19 existing resorts as Sandals continues to roll out its Sandals 2.0 vision. I’m also excited by the possibility of what the combined expertise and resources of these two companies could mean for the future growth of the brands, potentially even beyond the Caribbean. From a travel advisor’s perspective, there’s another reason I’m encouraged. Both Sandals and Royal Caribbean Group have long recognized the value of travel advisors. Ultimately, there’s still a lot we don’t know, and I don’t want to speculate too far ahead. But as someone who has built a significant part of my business around Sandals and Beaches, I’m optimistic about the partnership and very interested to see what comes next.”

Jennifer Gaskell

Pink Palm Travel

Oakville, ON

“Having worked closely with Sandals and Beaches Resorts for more than 30 years, and a part of the Chairman’s Royal Club with Sandals, I have seen firsthand the incredible growth of these brands and the strong commitment they have always had to the travel advisor community. I have tremendous trust in Adam Stewart and the Sandals organization, and I am confident that this new partnership with Royal Caribbean Group will bring exciting opportunities for continued growth. Travel advisors have always been an important part of the Sandals story, and I look forward to seeing what this next chapter brings for our clients, our businesses and the brands we have proudly supported for so many years.”

Kim Hartlen

Kim Hartlen Travel

Halifax, NS

Lead image caption: Jason Liberty, Chairman and CEO of Royal Caribbean Group, and Adam Stewart, Executive Chairman of Sandals Resorts, signing off on their companies’ new partnership, at Royal Caribbean Group’s Miami HQ.