NASSAU, BAHAMAS: Royal Caribbean is reportedly nearing a multibillion-dollar deal for a stake in Sandals Resorts International, a move that could bring two major players in Bahamian tourism under a closer commercial relationship.
Multiple media outlets report that Royal Caribbean is nearing a multibillion-dollar deal for a major stake in Sandals Resorts International, valuing the resort company at around $6 billion. Reports differ on whether the proposed stake is 50 percent or a controlling interest. Neither company has confirmed an agreement, and talks could still end without a deal. Neither Royal Caribbean nor Sandals has confirmed the negotiations.
Sandals operates Sandals Royal Bahamian on New Providence. Its former Sandals Emerald Bay resort in Exuma is being redeveloped as Beaches Exuma, bringing the company’s family resort brand to The Bahamas. Royal Caribbean already operates Perfect Day at CocoCay and opened its Royal Beach Club on Paradise Island last year.
An agreement would give Royal Caribbean a direct stake in an established all-inclusive hotel business as it expands beyond cruise vacations. For The Bahamas, that could create opportunities to market cruises and longer resort stays to the same customers, particularly in Nassau and Exuma. It could also increase demand for air travel, excursions and local suppliers if the companies invest in attracting additional visitors.
The reported negotiations follow years of attempts to sell Sandals, the company founded by Jamaican businessman Gordon “Butch” Stewart. A sale effort before his death in 2021 was reportedly halted during the pandemic. Reports say disputes over the Stewart family trusts subsequently complicated the process, before Sandals engaged investment bankers last year to pursue a transaction.
Sandals and its sister brand Beaches operate resorts across the Caribbean. A deal would therefore give Royal Caribbean access to a network of land-based vacation properties and the chance to sell resort stays to its cruise customers. It would also deepen the cruise company’s exposure to Caribbean tourism at a time when it is investing in experiences ashore.
