Royal Caribbean is making its first foray into land-based resorts with the purchase of a 50% controlling stake in Sandals Resorts.
The deal, worth some US$3 billion, is expected to close in 2027, pending regulatory approval. Royal Caribbean Group chairman and CEO Jason Liberty said that the acquisition allows Royal Caribbean to expand into an adjacent vacation category, while providing the opportunity to expand Sandals and Beaches Resorts.
While Sandals and Beaches Resorts will continue to be guided by current executive chairman Adam Stewart, the wins for Royal Caribbean with this acquisition are manifold.
It allows Royal Caribbean to tap into an existing market segment – land-based Caribbean resorts – to which it would otherwise have no access. Perhaps more importantly, it gives Royal Caribbean access to existing resorts and facilities on land that could potentially be developed into new cruise destinations.
Royal Caribbean’s development plans for the Port of Costa Maya, Mexico, were stymied this year by local opposition and government officials, who shuttered the line’s hopes to create what it called Perfect Day Mexico, a private manufactured cruise destination in the heart of Costa Maya.
With the acquisition of Sandals and Beaches Resorts, it would seem that Royal is taking another run at Caribbean development – and its controlling stake could allow them to do just that.
