Royal Caribbean Buys 50% Stake in Sandals Resorts for $3 Billion

(Bloomberg) -- Royal Caribbean Cruises Ltd. agreed to buy a 50% stake in Sandals Resorts International for about $3 billion, a deal that will give the cruise operator access to its all-inclusive resorts across the Caribbean.

Under the deal, the two companies will form a joint venture controlling Sandals, Miami-based Royal Caribbean said Wednesday. Family members of Sandals founder Gordon Stewart, who died in 2021, will retain the other half.

The agreement comes amid another period of turmoil for the cruise industry, as the war in the Middle East dents its recovery from the aftermath of the Covid-19 pandemic. Royal Caribbean expects to expand its offerings in the Caribbean via the Sandals tie-up by combining cruises with resort stays.

Shares of Royal Caribbean have slumped almost 16% this year, though that is less than peers Carnival Corp. and Norwegian Cruise Line Holdings Ltd.

Royal Caribbean Group secured debt financing from Morgan Stanley to fund the deal, which is expected to complete in early 2027.