Royal Caribbean Confirms $3bn Sandals Deal After Shares Slid on Report
Royal Caribbean Group has confirmed its largest-ever acquisition, a $3bn stake in Sandals Resorts, a day after a report of the impending deal sent its shares tumbling 6%.
Royal Caribbean Group (NYSE: RCL) confirmed today that it has agreed to buy a 50% stake in Sandals Resorts International for $3bn, its largest-ever acquisition. The cruise operator said the deal is expected to close in early 2027, when it would add Sandals’ 20 resorts to Royal Caribbean’s portfolio.
The confirmation follows CNBC’s report yesterday that Royal Caribbean was nearing the deal, which triggered the market reaction seen in the shares. RCL shares closed yesterday at $234.89, down 6.14%, or $15.36, from the previous close of $250.25, on volume of about 8.31 million shares. That leaves the stock near the bottom of its 52-week range of $229.54 to $350.59, a range that spans more than $120 a share.
Royal Caribbean is funding the $3bn investment with committed debt from investment bank Morgan Stanley rather than cash or new equity, adding further to the leverage already carried by a cruise operator. The deal is roughly 5% of Royal Caribbean’s $62.8bn market capitalisation.
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RCL share price, trailing three months to 22 September 2026, showing the fall after the Sandals deal report
The deal extends Royal Caribbean’s push beyond ships and into land-based holiday products, alongside its existing Royal Beach Club private destinations and Perfect Day resort stops.
Buying into Sandals, whose resorts have been the subject of takeover speculation for close to a decade, gives Royal Caribbean a stake in the long-rumoured business. Reuters reported back in 2017 that Sandals was exploring strategic alternatives, including a possible sale, and the company has periodically resurfaced as a takeover target in the years since.
The Financial Times has reported that the deal could value Sandals at more than $6bn, a single-sourced figure distinct from the $3bn stake Royal Caribbean has confirmed.
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A joint venture board co-led by Jason Liberty, chairman and chief executive of Royal Caribbean Group, and Adam Stewart, executive chairman of Sandals Resorts, will oversee the combined business going forward.
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