Cruise operator Royal Caribbean Group is in reported talks to acquire a majority stake in Sandals Resorts International, in a transaction that would value the Jamaican luxury resort chain at more than US$6 billion. News of the potential deal sent Royal Caribbean shares down 6.1 per cent on Tuesday following an initial report by the Financial Times.
According to sources familiar with the matter cited by the Financial Times, Royal Caribbean would become the controlling shareholder under the proposed transaction, while members of the family of founder Gordon ‘Butch’ Stewart would retain an equity stake.
The report noted that Royal Caribbean could eventually transition to full ownership and that a deal might be announced within days, although negotiations remain fluid and could still end without an agreement.
A separate report from CNBC, citing a single source familiar with the negotiations, outlined an alternative framework in which Royal Caribbean would acquire a 50 per cent equity stake for US$3 billion, likewise implying a total valuation of roughly US$6 billion. CNBC similarly noted that the talks could fail.
Founded in Jamaica in 1981 by the late Gordon ‘Butch’ Stewart, Sandals Resorts International has grown into one of the Caribbean’s premier hospitality entities, operating the Sandals and Beaches resort brands across the region and employing approximately 20,000 people.
If finalized, the transaction would mark a major diversification by Royal Caribbean beyond its core cruise ship operations into the land-based, all-inclusive resort market. Royal Caribbean currently operates private island destinations for its cruise guests and has been seeking to expand its land-based offerings. The acquisition talks come during a challenging market period for the cruise line, whose shares have dropped by roughly 25 per cent over the past year, according to CNBC.
The acquisition discussions follow previous efforts by Sandals to evaluate strategic options. In March 2025, The Wall Street Journal reported that the resort group had retained investment bankers to explore a potential sale valued between US$6 billion and US$7 billion.
That effort was initiated following Butch Stewart’s death in 2021 and occurred amid heightened consolidation in the all-inclusive hospitality sector, including Hyatt Hotels’ US$2.6-billion acquisition of Playa Hotels & Resorts.
