Royal Caribbean Group is expanding into the all-inclusive resort market with a US$3 billion investment to acquire a 50 per cent stake in Sandals and Beaches Resorts.

The agreement will create a joint venture between the two companies and give Royal Caribbean Group a foothold in the all-inclusive resort sector alongside its cruise brands, including Royal Caribbean, Celebrity Cruises and Silversea.

The transaction is expected to close in early 2027, subject to customary approvals and closing conditions. Royal Caribbean Group said it has secured committed debt financing from Morgan Stanley for the investment.

Jason Liberty, chairman and CEO of Royal Caribbean Group, said the deal represents an expansion of the company’s vacation platform.

“Our partnership with Sandals and Beaches Resorts is an important next step on that journey – bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world,” Liberty said.

The joint venture will include Sandals and Beaches’ collection of all-inclusive resorts across the Caribbean. The companies said they will explore opportunities to broaden distribution and make it easier for travellers to access experiences across their cruise, private destination and resort portfolios.

Adam Stewart, executive chairman of Sandals and Beaches Resorts, said the agreement builds on the vision of his late father, Gordon “Butch” Stewart, who founded Sandals Resorts.

“This partnership is the natural next step in building on that conviction. It gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment, and the power of enduring brands,” Stewart said.

Under the terms of the agreement, Royal Caribbean Group will acquire its 50 per cent equity interest for approximately US$3 billion, representing a forward EBITDA multiple of approximately 10 times.

Stewart will remain executive chairman and continue to guide the company’s long-term strategic growth. The joint venture will be governed by a board under the shared leadership of Stewart and Liberty.

Existing reservations, loyalty programmes and resort operations will continue as usual.

Stewart said the company would maintain the principles that have defined Sandals as it expands.

“As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations while creating opportunities for our team members, travel advisor partners and the communities we call home,” he said.