Global vacation company Royal Caribbean Group is acquiring half of Caribbean all-inclusive resort brand Sandals Resorts for about US$3 billion.
Sandals employees in Barbados and elsewhere have been told that following the transaction, which is expected to close in early 2027 pending necessary approvals, their “role, responsibilities and our dayto-day operations will continue as usual”. That assurance came yesterday from Sandals executive chairman Adam Stewart in written correspondence sent to staff, including those at the two Barbados resorts, after the two companies announced a “landmark partnership to accelerate their leading vacation experiences”.
Sandals owns and operates two hotels in Christ Church and will be building a Beaches Resort at Heywoods, St Peter. The company reportedly has more than 1 000 employees in Barbados.
“Of course, you’re wondering what this means for you. The answer is simple. Your role, responsibilities and our day-to-day operations will continue as usual. Our leadership team remains firmly in place, and I will continue serving as executive chairman of this incredible organisation,” Stewart told Sandals employees.
“Most importantly, our mission remains exactly where it has always been: delivering exceptional experiences for our guests and continuing to raise the bar for all-inclusive vacations.”
Stewart said the partnership would give Sandals and Royal Caribbean “greater capacity to grow Sandals and Beaches Resorts globally while staying true to what has made these brands so special”.
“It means ideas born in the Caribbean and of the Caribbean will reach more shores in more countries, creating new possibilities for our company, our people and the communities we call home,” he added.
In their joint announcement, the two companies said they had “signed an agreement to form a partnership in the all-inclusive resort space with an investment from Royal Caribbean Group”.
The joint venture, they said, would “create new opportunities for continued resort growth while broadening the experiences across Royal Caribbean Group’s vacation platform”.
“The joint venture expands Royal Caribbean Group into an adjacent vacation category, growing its participation in the approximately US$2 trillion global vacation market, and meets the growing global demand for Sandals and Beaches Resorts by accelerating their expansion,” the companies explained.
“The partnership will include Sandals and Beaches’ collection of premier all-inclusive properties across the Caribbean, and the companies will explore opportunities to broaden distribution, deepen guest engagement, and make it easier for travelers to discover vacation experiences offered across both portfolios.”
Royal Caribbean Group chairman and chief executive officer Jason Liberty said the two partners saw “opportunity to expand the reach of Sandals and Beaches Resorts”.
The Sandals executive chairman said the partnership was a natural step in building on the vision of his father, the late Gordon “Butch” Stewart, who founded the company “with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality”.
“Today is proof of how far that vision can go. This partnership is the natural next step in building on that conviction,” he said.
“It gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment and the power of enduring brands.”
The joint venture will be governed by a board under the joint leadership of Stewart and Liberty, with Stewart maintaining “a leadership role in guiding the company’s long-term strategic growth as executive chairman of Sandals and Beaches Resorts”.
“Existing reservations, loyalty programmes, resort operations and cruise operations will continue as usual, with the partnership bringing additional resources to support future opportunities,” the companies said.
Royal Caribbean Group is borrowing money from United States-based investment bank Morgan Stanley to fund the 50 per cent equity stake in Sandals. (SC)