Royal Caribbean Eyes Global Resorts With $3B Sandals Deal

Royal Caribbean Group holds land around the world, chairman and CEO Jason Liberty told analysts during Tuesday’s third-quarter earnings call. He also confirmed that the company sees opportunities for land-based all-inclusive resorts outside the Caribbean.

The disclosure came as Liberty discussed the group’s planned $3 billion investment for a 50% stake in Sandals and Beaches Resorts. That transaction includes more than 1,000 acres of undeveloped Caribbean real estate.

“By the way, we also sit on a lot of land around the world, which we don’t talk a lot about,” Liberty said.

He did not identify the locations or acreage of those holdings. Royal Caribbean also did not specify whether the properties were intended for cruise destinations, resorts or other future development.

Liberty’s comments followed an analyst’s question about opportunities to develop all-inclusive resorts beyond the Caribbean. He said Royal Caribbean had tested the Sandals and Beaches brands and believed they would appeal to customers internationally, although near-term expansion would remain concentrated in the Caribbean.

What Royal Caribbean is buying into

Much of the undeveloped land included in the Sandals and Beaches transaction is beachfront and adjoins existing resorts. The package also contains several greenfield sites.

Royal Caribbean announced the proposed acquisition on September 23. Morgan Stanley has committed debt financing for the purchase, which is expected to close in early 2027, subject to approvals.

Sandals operates adults-only, all-inclusive resorts for couples, with properties in destinations including Jamaica, The Bahamas, Curaçao and Saint Vincent and the Grenadines. Beaches serves families through its resorts in Jamaica and Turks and Caicos.

Further Beaches properties are planned for Exuma, Barbados, Runaway Bay and Saint Vincent and the Grenadines. Liberty did not name a destination outside the Caribbean for either resort brand.

Adam Stewart, executive chairman of Sandals Resorts and Beaches Resorts, will share leadership of the joint venture’s board with Liberty and continue directing the resort company’s growth. Existing bookings and loyalty programs will continue unchanged, as will resort and cruise operations.

Cruise destination projects extend beyond the Caribbean

Royal Caribbean is also developing its own destinations. Liberty said the group had more than 100 destination projects at various stages, without providing a geographic breakdown or individual development schedules.

Its established Caribbean destinations include Perfect Day at CocoCay in The Bahamas and Labadee in Haiti. Outside the region, Royal Caribbean is planning Royal Beach Club Santorini in Greece.

In Vanuatu, Royal Beach Club Lelepa is planned as Royal Caribbean’s first private cruise destination in the Southern Hemisphere. Michael Bayley, president and CEO of Royal Caribbean International, said the brand would break ground there two weeks after the earnings call.