Royal Caribbean nears deal for Sandals valuing resorts at more than $6bn
Royal Caribbean is nearing an agreement to buy Sandals Resorts in a transaction valuing the resort group at more than $6bn, according to the Financial Times. The deal would extend the cruise operator’s model onto land and become its largest acquisition if completed.
The Financial Times reported on September 22 that Royal Caribbean is nearing a deal for Sandals Resorts at a valuation of more than $6bn. The proposed transaction would be the cruise operator’s largest acquisition and would add a major land-based vacation business to its cruise portfolio.
Royal Caribbean has been expanding from an exclusively sea-based vacation model toward a broader tourism offering. Its 2025 revenue was $17.9B, up 8.8% year over year, but the Sandals transaction would be a substantially different type of operating asset, with resort ownership and management economics alongside cruise operations.
The direct connection is Royal Caribbean, which would become the buyer and would use Sandals to serve travelers before or after a cruise, or independently of one. Sandals would bring a resort network into the group, while the transaction’s valuation would determine the amount of capital committed to that expansion.
The agreement has not been completed, and the report describes Royal Caribbean as nearing a deal rather than announcing a signed transaction. The final price, financing structure, timing, and terms were not established in the reported details.
The next concrete markers are a definitive agreement, any regulatory or financing disclosures, and Royal Caribbean’s subsequent earnings discussion of the acquisition’s contribution and funding.
Royal Caribbean is nearing a more than $6bn purchase of Sandals Resorts, its largest deal to date.
The transaction would give Royal Caribbean a new land-based revenue stream, but the valuation and financing burden make the economics dependent on terms that have not yet been established. Royal Caribbean’s 2025 revenue reached $17.9B, up 8.8% year over year, providing scale for the expansion while leaving the acquisition’s effect on leverage, margins and earnings to be assessed after a definitive agreement.
The read breaks if Royal Caribbean pays materially more than the reported valuation or funds the purchase in a way that increases financial pressure without clear earnings contribution.
CoverageSource: Financial Times · Published here TUE, SEP 22 · 2:14 PM ET · the only report in this recordHow this is decided →
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Sandals would extend Royal Caribbean’s vacation ecosystem beyond cruises and add an asset class that could support cross-selling across its $17.9B revenue base.
The bear case is the more than $6bn purchase price: without disclosed financing and resort earnings, the transaction could add execution and balance-sheet risk before its contribution is clear.
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