Sandals reportedly in US$6-billion talks with Royal Caribbean

Shares of Royal Caribbean Group fell 6.1 per cent on Tuesday after the Financial Times (FT) reported that the cruise operator stands close to a deal to acquire a majority stake in Sandals Resorts International, in a transaction that would value the Jamaican resort chain at more than US$6 billion.

FT, citing people familiar with the matter, said Royal Caribbean would become the controlling shareholder, while members of the family of founder Gordon 'Butch' Stewart would retain an equity interest. The report added that Royal Caribbean could eventually move to full ownership, and that the companies could announce a deal within days, although negotiations continue and may not produce an agreement.

CNBC, citing a single person familiar with the matter, gave a different structure on Tuesday, reporting that Royal Caribbean is nearing a US$3-billion deal for a 50 per cent equity stake in Sandals, which would also imply a valuation of about US$6 billion. CNBC likewise said the talks could fail.

Neither company had announced a transaction up to press time. The Financial Gleaner sent questions to Adam Stewart, executive chairman of Sandals Resorts International, on the reported discussions, the ownership structure under consideration, and the implications for the company's operations in Jamaica. Sandals has previously said it does not comment on market speculation.

Butch Stewart founded Sandals in Jamaica in 1981, and the company has since grown into one of the Caribbean's best-known hospitality brands. It operates the Sandals and Beaches resort brands across the region and employs about 20,000 people.

A completed deal would mark a major push by Royal Caribbean beyond its core cruise business into the all-inclusive resort market, and would likely rank among the largest transactions involving a Caribbean tourism company. Royal Caribbean already operates private destinations for its cruise passengers and has sought to expand its land-based offerings. Its shares have lost roughly a quarter of their value over the past year, CNBC reported.

The talks follow earlier attempts to sell Sandals. In March 2025, The Wall Street Journal reported that the company had engaged bankers to explore a sale at a valuation of between US$6 billion and US$7 billion. That effort followed Butch Stewart's death in 2021 and came amid consolidation in the all-inclusive sector, including Hyatt Hotels' agreement to acquire Playa Hotels & Resorts for about US$2.6 billion.

carolyn.guniss@rjrgleaner.com