Royal Caribbean is diversifying its operations by purchasing a 50 per cent stake in Sandals Resorts for US $3 billion. The joint venture expands Royal Caribbean Group into the land based vacation category, and accelerates the global expansion for Sandals and Beaches Resorts.
The value of the business expands to US $6 billion and gives Royal Caribbean control over Sandals’ 20 hotel resorts across the Caribbean.
The signing took place at Royal Caribbean Group’s new headquarters in Miami.
A statement issued by Royal Caribbean said, “The partnership brings together two of the travel industry’s most celebrated vacation companies, pairing Sandals and Beaches’ all-inclusive resort expertise with Royal Caribbean Group’s vacation platform, including industry-leading brands – Royal Beaches’ collection of premier all-inclusive properties across the Caribbean, and the companies will explore opportunities to broaden distribution, deepen guest engagement, and make it easier for travellers to discover vacation experiences offered across both portfolios.
Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts said, “My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality. Today is proof of how far that vision can go.
“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. Together, we will introduce more guests to Sandals and Beaches Resorts while creating even more extraordinary experiences for those who have made our resorts part of their lives for decades.”
“As we continue to grow,” Stewart said, “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. The future has never been brighter, and I know this moment would make my father incredibly proud.”
Liberty said in a statement that the Sandals partnership marks “an important next step” in Royal Caribbean’s efforts to build a wider vacation platform “bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world”.
The joint venture will be governed by a board under the shared leadership of Stewart and Liberty. Stewart will maintain a leadership role in guiding the company’s long-term strategic growth as Executive Chairman of Sandals and Beaches Resorts. Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, with the partnership bringing additional resources to support future opportunities.
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