NASSAU, BAHAMAS: Royal Caribbean Group and Sandals Resorts have signed an agreement for the cruise company to acquire a 50 percent stake in Sandals and Beaches Resorts for approximately $3 billion, confirming a partnership that will bring two major Caribbean vacation businesses together.
The companies announced the agreement Wednesday. Completion of the deal is expected in early 2027, subject to customary approvals and closing conditions.
The agreement has direct significance for The Bahamas. Sandals operates Sandals Royal Bahamian in Nassau and owns the former Sandals Emerald Bay property in Exuma, which is slated to become a Beaches resort. Royal Caribbean has also invested in Bahamian destinations, including its Royal Beach project and Perfect Day at CocoCay.
The joint venture will include Sandals and Beaches resorts across the Caribbean. Royal Caribbean said it has secured committed debt financing from Morgan Stanley to fund its investment. The $3 billion price for a half stake implies a valuation of approximately $6 billion for the resort business.
“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,” said Sandals Resorts Executive Chairman Adam Stewart.
Royal Caribbean Group Chairman and CEO Jason Liberty said the partnership would support further growth of the Sandals and Beaches portfolio while expanding Royal Caribbean’s vacation business into all-inclusive resorts.
“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,” Liberty said.
Stewart and Liberty will share leadership of the joint venture’s board, while Stewart will remain executive chairman of Sandals and Beaches Resorts. The companies said existing reservations, loyalty programmes and operations will continue as usual.
Neither company announced specific changes to its Bahamian properties under the agreement.
