Royal Caribbean to Pay $3B for 50% of Sandals Resorts in Landmark All-Inclusive Deal
RCL is trading near its 52-week low of $231.03 (2.7% above the low) on elevated volume (3.8× avg).
Summary
Royal Caribbean Group will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion, representing a forward EBITDA multiple of about 10x. The deal expands Royal Caribbean into the all-inclusive resort space, pairing Sandals' Caribbean portfolio with Royal Caribbean's cruise and private destination platform. The company has secured committed debt financing from Morgan Stanley and expects the transaction to close in early 2027, with accretion to earnings next year. This follows a Reuters report yesterday that Royal Caribbean was close to acquiring Sandals, but today's announcement provides concrete terms and structure. The partnership is a significant strategic move into an adjacent vacation category, broadening Royal Caribbean's addressable market and leveraging its existing Caribbean presence.
At the time of this announcement, RCL was trading at $237.25 on NYSE in the Trade & Services sector, with a market capitalization of approximately $62.8B. The 52-week trading range was $231.03 to $356.39. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: PR Newswire.