The deal in brief
Miami-based Royal Caribbean said Wednesday it reached an agreement to purchase half of Sandals Resorts International for roughly $3 billion. The partners will set up a joint venture that will control Sandals. Gordon Stewart's family - he was the founder of Sandals and passed away in 2021 - will retain the remaining 50%. The deal will give Royal Caribbean access to Sandals' all-inclusive resorts across the Caribbean.
Why timing matters
Cruise lines face fresh headwinds, with the conflict in the Middle East weighing on a post-pandemic rebound that was already tenuous. By partnering with Sandals, Royal Caribbean aims to broaden what it sells across the Caribbean, pairing cruise itineraries with resort stays.
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Money and market check
To fund the purchase, Royal Caribbean Group obtained a debt facility from Morgan Stanley, and they anticipate closing the transaction in early 2027. The shares are down almost 16% this year, a smaller drop than Carnival Corp. and Norwegian Cruise Line Holdings Ltd.
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