Royal Caribbean Group (NYSE: RCL ) stock rose in Wednesday premarket trading after the company agreed to invest about $3 billion for a 50% stake in Sandals and Beaches Resorts .
The deal expands Royal Caribbean into all-inclusive resorts and is expected to boost earnings next year. The company said the deal gives it greater exposure to the roughly $2 trillion global vacation market.
Royal Caribbean Bets $3 Billion On Sandals Royal Caribbean will acquire the stake at about 10 times forward EBITDA, using committed debt financing from Morgan Stanley .
The transaction is expected to close in early 2027, subject to customary approvals.
The joint venture will combine Sandals and Beaches’ Caribbean resorts with Royal Caribbean’s vacation brands, including Royal Caribbean, Celebrity Cruises and Silversea.
The companies plan to broaden distribution, deepen guest engagement and support Sandals and Beaches’ expansion.
Existing reservations, loyalty programs and resort and cruise operations will continue as usual.
Sandals Leadership Stays In Place Royal Caribbean Chairman and CEO Jason Liberty and Sandals Executive Chairman Adam Stewart will jointly lead the venture’s board.
Stewart said the d...