A person with knowledge of the discussions said Royal Caribbean is close to acquiring half of Sandals for around $3 billion, valuing the Caribbean resort operator at $6 billion. The person said the tie-up is expected to fuel growth for both sides, while cautioning the negotiations are ongoing and could still fail to produce a deal. Neither company immediately responded to requests for comment.
The stock dropped about 6% after the reports surfaced. Over the last year, shares are down roughly 25% after Royal Caribbean cut its revenue growth outlook, citing softer demand for European sailings. The company has been working to extend its reach beyond ships and into the broader vacation market.
It already runs several private destinations for cruise guests and has been investing in more land-based offerings. Sandals and its Beaches brand operate more than a dozen resorts spread throughout the Caribbean, creating a doorway for Royal Caribbean to move into all-inclusive stays.
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If this stake comes together, Royal Caribbean would add all-inclusive resorts to its mix, potentially smoothing seasonality and widening the ways travelers interact with the brand. For regular investors, it is a reminder that travel companies are trying to build more diversified revenue streams, not just sell cabins. One important caveat: the talks might not lead to a deal, and neither company immediately responded to requests for comment.
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