EL7.AI
Mergers & AcquisitionsMedium•28 October 2026•
3 min read

Royal Caribbean to Pay $3 Billion for 50% of Sandals and Beaches

Key Facts

1Royal Caribbean is targeting the purchase of 50% of the Sandals and Beaches businesses for about $3.0 billion, with closing expected in early 2027.
2The portfolio is implicitly valued at $6 billion, based on the Jamaica Gleaner’s calculation from the price for a 50% stake.
3The portfolio includes more than 1,000 acres of undeveloped land in the Caribbean.
4The group operates 7 resorts in Jamaica, its largest market.
5Royal Caribbean estimated the deal’s multiple at about 10 times forward EBITDA.

Royal Caribbean announced on September 23 a definitive agreement to buy a 50% stake in the Sandals and Beaches resort businesses for about $3 billion in cash, with closing expected in early 2027 after customary approvals and conditions are met. Details of the deal published by the Jamaica Gleaner on October 28 say the investment includes a portfolio of resorts and undeveloped land in the Caribbean. Based on the newspaper’s calculation, the stake price implies an asset valuation of $6 billion. Royal Caribbean says the investment is expected to boost earnings in the following year, but its contribution in 2027 depends on the closing date. The company estimated the deal’s multiple at about 10 times forward EBITDA.

The land bank is one of the deal’s most significant assets: the portfolio includes more than 1,000 acres of undeveloped land in the Caribbean, some of it adjacent to existing resorts. Royal Caribbean Chief Executive Jason Liberty described the land as one of the agreement’s most important elements, citing the difficulty of assembling comparable parcels. He said on the earnings call: "These aren't things that you can just buy off the shelf; they've been carefully and brilliantly assembled by the Stewart family." The land gives the company room to expand in existing destinations, while it says its current focus remains within the Caribbean. Liberty also said the group sees the potential to expand the Sandals and Beaches brands globally, without making that its current expansion priority.

The Sandals and Beaches portfolio includes resorts in Jamaica, Antigua, St. Lucia, the Bahamas, Barbados, Grenada, Curaçao, St. Vincent and the Grenadines, and Turks and Caicos. Jamaica remains the group’s largest market, with 7 operating resorts there, according to the Jamaica Gleaner report. This local base links the importance of the land bank to expansion potential in the Caribbean market on which the company is currently focused. The deal includes the all-inclusive resort businesses within Royal Caribbean’s broader vacation platform, which also includes private destinations and river cruise offerings. The company said the partnership will preserve Sandals and Beaches’ identity and Caribbean character, as well as their operational leadership.

Royal Caribbean is paying cash for the stake, funded by committed debt financing from Morgan Stanley, according to deal details published on October 28. The company said it does not expect to make additional capital contributions, and that the operating business will rely largely on its cash flows to fund expansion. Liberty put it this way: "This business funds its own growth because this business generates significant cash flow." The partnership is set to have a co-led board comprising Adam Stewart and Liberty, while Stewart will continue in a leadership role as chairman of Sandals and Beaches. Existing bookings, loyalty programs and operations will continue as usual after the deal closes.