Royal Caribbean has reached an agreement to acquire a 50% equity stake in Sandals Resorts for $3 billion. This transaction values the Caribbean resort chain at $6 billion and is expected to close in early 2027. The partnership is designed to enhance growth opportunities for both companies by combining Royal Caribbean’s cruise expertise with Sandals’ well-established all-inclusive land-based vacation offerings.

This deal represents a strategic step by Royal Caribbean to expand beyond its traditional cruise business and become a broader leader in the vacation industry. The cruise operator has faced challenges recently, with a 25% decline in its stock over the last year partly due to reduced demand for European sailings and revised revenue projections. Developing land-based vacation options aligns with their goal of diversifying and enhancing overall customer experiences.

Sandals, which operates more than a dozen properties across the Caribbean, provides Royal Caribbean with an immediate foothold in the resort and all-inclusive segment. Previously, Royal Caribbean has managed private destinations for its cruise passengers, but this new partnership significantly broadens its land vacation portfolio. The move also leverages Sandals’ brand strength and network in the Caribbean.

The deal had been reported earlier by major media outlets, and the companies have now officially announced the partnership. Both entities anticipate that the combination of their complementary businesses will drive robust growth and deliver enhanced vacation experiences to customers, positioning Royal Caribbean Group as a leader not only on the seas but also on land.