Royal Caribbean Considers Investment in Sandals Resorts

Royal Caribbean Group appears to be preparing for another step beyond its traditional cruise business. 

According to current reports, the US cruise group is negotiating a possible stake in Sandals Resorts International. The Caribbean resort company is reportedly being valued at more than 6 billion US dollars. However, no agreement has been finalized.

According to information that has emerged so far, Royal Caribbean could acquire a majority stake in Sandals. Other reports have referred to a possible 50 percent stake for around 3 billion US dollars. The negotiations are still ongoing and could ultimately end without a transaction.

Royal Caribbean Expands Its Business Model

The cruise industry continues to grow, while the major cruise groups are also expanding their business models. Royal Caribbean Group is investing not only in new ships but also in its own destinations and land-based experiences. The Icon Class ships and the expansion of Perfect Day at CocoCay demonstrate the growing importance of additional vacation experiences for the group.

A possible investment in Sandals would extend this strategy into the traditional resort business. While Royal Caribbean operates cruises and develops destinations for its passengers, Sandals has a long-established portfolio of all-inclusive resorts across several Caribbean markets.

For Royal Caribbean, this would represent an expansion of its existing business model. In addition to time spent onboard ships and at its own destinations, the group would gain access to longer land-based stays at established resorts. This could create new opportunities to combine and market cruise holidays and traditional Caribbean vacations.

Whether and to what extent new travel products will actually emerge depends on the further negotiations and the terms of any potential transaction. The possible Sandals deal has not yet been completed.

Cruise and Resort Under One Group

Sandals would give Royal Caribbean access to an established network of all-inclusive resorts across the Caribbean. Sandals primarily targets couples and also operates family-oriented resorts under the Beaches brand.

The company has resorts on several islands, including Jamaica, Saint Lucia, the Bahamas, Barbados, Antigua, Grenada, Curaçao and Saint Vincent. A successful transaction would therefore give Royal Caribbean a significantly broader presence in Caribbean land-based tourism.

This could create new opportunities for Royal Caribbean in vacation marketing. Cruise passengers could be offered more options for land-based holidays, while existing Sandals customers could potentially be introduced to cruises operated by the group.

One possible model would be a combination of a cruise followed by a stay at a Sandals resort. Joint marketing activities and loyalty programs could also become relevant if the transaction goes ahead.

Royal Caribbean Expands Its Caribbean Business

The potential Sandals investment fits into Royal Caribbean's existing activities. The company has already significantly expanded its land-based presence and is investing in destinations specifically designed for cruise passengers.

Perfect Day at CocoCay in the Bahamas is one of the best-known examples. The company is also developing additional Royal Beach Club projects in the Caribbean. An established resort operator would add another dimension: longer stays on land.

For the Caribbean, this would therefore represent more than a conventional hotel-sector transaction. Royal Caribbean could expand its position from a cruise operator toward a broader vacation provider. Ships, proprietary destinations and land-based resorts could become more closely connected.

Sandals Is Also Investing in Its Resorts

Sandals itself is currently undergoing a significant investment phase. In 2026, the company announced a modernization program worth around 200 million US dollars for several of its Jamaican resorts.

The properties involved include Sandals Montego Bay, Sandals South Coast and the resort formerly known as Sandals Royal Caribbean, which is now being presented as Sandals Caribbean Cay. The properties are being extensively modernized and redesigned.

Sandals describes the measures as part of its “Sandals 2.0” strategy. Jamaica remains a key market for the company.

These ongoing investments also make Sandals relevant to an international tourism group. If the transaction is completed, Royal Caribbean would not simply gain hotel properties but access to an established brand with decades of experience in the Caribbean market.

What Could Change for Cruise Passengers?

If the transaction goes ahead, the initial focus is likely to be on combining and marketing different vacation products. Royal Caribbean could link cruises and land-based holidays more closely and offer customers additional travel options.

For the Caribbean, this could also change the role of individual destinations. An island visit would no longer necessarily be limited to a few hours or a single day as part of a cruise itinerary. Through the resort business, the same destination could become the starting point for a longer vacation.

Whether this will actually result in new combined travel products remains open. Negotiations between Royal Caribbean and Sandals are still at an early stage. Reports published so far describe different possible ownership structures, and no final agreement has yet been announced.

About Royal Caribbean Group

Royal Caribbean Group is one of the world's largest cruise companies. Its brands include Royal Caribbean International, Celebrity Cruises and Silversea. In addition to its cruise operations, the group continues to expand its portfolio of destinations and land-based vacation experiences.

About Sandals Resorts International

Sandals Resorts International was founded in Jamaica in 1981 and specializes in all-inclusive resorts in the Caribbean. The Sandals brand primarily targets couples, while Beaches Resorts focuses on families. The company operates properties across several Caribbean islands.