Story perspectives

Royal Caribbean to buy 50% of Sandals for $3B

By Drooid · Sep 24, 2026, 2:21 PM UTC · How we work

Summary

Royal Caribbean Acquires Sandals

Royal Caribbean Group is buying a 50% stake in Sandals and Beaches Resorts for about $3 billion.
Morgan Stanley will provide debt financing for the transaction.
The transaction values Sandals at about $6 billion, a 10-times EBITDA multiple.
Closing is expected in early 2027, subject to customary approvals and conditions.
The deal adds Sandals’ 20 Caribbean all-inclusive resorts to Royal Caribbean’s portfolio.

Summary

Royal Caribbean Shares Drop

Royal Caribbean shares fell 6.1% after announcing the Sandals acquisition, reaching a near-year low.
Investors pushed the stock down as much as 12% during opening trade on September 23.
The share price recovered partially and closed about 3% lower by day’s end.
Analysts say the deal adds execution risk and may not deliver cross-selling synergies.
Royal Caribbean is down roughly 20% since the start of 2026.

History

Historical Context

Carnival Corporation’s 2000 $525 million buy-out of the remaining 50 % of Costa Cruises marked the start of a wave of large-scale consolidations that later included its 2003 hostile takeover of P&O Princess. This pattern of leveraging acquisitions to expand market share set the backdrop for Royal Caribbean’s 2026 plan to purchase a 50 % stake in Sandals-Beaches for $3 billion, reflecting ongoing industry concentration.

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Royal Caribbean Acquires Sandals

Royal Caribbean Group is buying a 50% stake in Sandals and Beaches Resorts for about $3 billion.
Morgan Stanley will provide debt financing for the transaction.
The transaction values Sandals at about $6 billion, a 10-times EBITDA multiple.
Closing is expected in early 2027, subject to customary approvals and conditions.
The deal adds Sandals’ 20 Caribbean all-inclusive resorts to Royal Caribbean’s portfolio.

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