Royal Caribbean Group (NYSE: RCL) has signed an agreement to acquire a 50% equity interest in Sandals Resorts and Beaches Resorts for approximately $3 billion, representing a forward EBITDA multiple of roughly 10x. The cruise giant, whose portfolio includes Royal Caribbean, Celebrity Cruises, and Silversea, is entering the all-inclusive resort segment for the first time through the joint venture, with Morgan Stanley providing committed debt financing for the transaction. Closing is expected in early 2027, subject to regulatory approvals.
What the Deal Covers
The partnership encompasses Sandals and Beaches' full collection of all-inclusive properties across the Caribbean — Sandals' adults-only resorts spanning Jamaica, Antigua, Saint Lucia, The Bahamas, Barbados, Grenada, Curaçao, and Saint Vincent and The Grenadines, plus Beaches' family-focused resorts in Negril, Jamaica and Turks and Caicos, with additional Beaches locations in the pipeline. Royal Caribbean Group operates 71 ships calling on more than 1,000 destinations and has been expanding its land-side footprint through its Perfect Day and Royal Beach Club private destination collections. This transaction represents a significant step further into land-based hospitality, targeting a share of what the companies describe as a roughly $2 trillion global vacation market.
Governance of the joint venture will be shared, with Adam Stewart, Executive Chairman of Sandals Resorts, retaining a leadership role guiding long-term strategic growth alongside Royal Caribbean Group Chairman and CEO Jason Liberty. "The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy," Liberty said. Stewart framed the deal as the realization of a vision his late father, founder Gordon "Butch" Stewart, had for Sandals standing alongside the world's most respected hospitality names. Existing reservations, loyalty programs, and resort and cruise operations will continue without disruption during the transition.
Implications for Hospitality Operators
For the broader Caribbean hospitality industry, the deal signals that large-scale capital is moving aggressively into the all-inclusive segment. Sandals and Beaches have long set the benchmark for premium all-inclusive food and beverage programming in the region — from butler-service dining and signature suite menus to expansive multi-venue F&B lineups across family resorts. Royal Caribbean's entry brings both distribution muscle and technology infrastructure that could reshape how all-inclusive resort F&B is marketed, packaged, and delivered to a loyalty-driven guest base.
The joint venture will explore broadening distribution, deepening guest engagement, and making it easier for travelers to move between cruise, private destination, and resort products. That cross-platform model has direct implications for food and beverage programming at all-inclusive properties, where curated dining experiences increasingly drive repeat bookings and brand differentiation. For operators, food and beverage suppliers, and travel advisors working in the Caribbean hospitality space, Royal Caribbean's capital and ecosystem — including its industry-first loyalty program — could substantially accelerate Sandals and Beaches' expansion pipeline, intensifying competition for premium resort guests across the region. As covered by Food & Beverage Magazine, all-inclusive F&B has been one of the fastest-evolving segments in travel hospitality, with guests demanding culinary programming that rivals standalone restaurant experiences.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
