Royal Caribbean expands to beach resorts

Royal Caribbean Group is set to acquire a 50% stake in Sandals Resorts and Beaches Resorts, marking a significant expansion beyond its traditional cruise offerings. The deal, valued at approximately $3 billion, represents a strategic entry into the vast $2 trillion global vacation market.

This acquisition underscores Royal Caribbean's focus on repeat business. CEO Jason Liberty highlighted that repeat guests increase their spending by 20% to 25%. The company's new credit card also correlates with increased sailing frequency. Adding complementary vacation experiences, such as resort stays, is seen as a way to capture additional travel spending rather than cannibalizing existing cruise bookings.

The transaction is anticipated to contribute positively to earnings beginning in 2027. Funding for the deal is secured through committed debt financing. The acquisition is expected to be completed in early 2027, pending regulatory approvals. Sandals Resorts boasts beachfront properties across several Caribbean islands, including Jamaica and Barbados.