Royal Caribbean buys 50% of Sandals for US$ 3 billion and the market punishes its shares
Article excerpt
Royal Caribbean Group agreed to buy 50% of Sandals and Beaches Resorts for US$ 3 billion, in the largest acquisition in its history. Wall Street received the operation with doubts and the company's shares fell 12% after it emerged that the deal was about to close. The purchase expands its business beyond cruises and will allow it to add land-based vacations to its offering in the Caribbean, a decision that aroused caution among some investors. The transaction will give the group half of a company that operates 19 all-inclusive resorts in the Caribbean. The portfolio consists of 17 Sandals brand resorts, exclusive for adults, and two Beaches Resorts oriented towards families. The purchase values the entirety of Sandals Resorts at US$ 6 billion and the operation is expected to close in early 2027. The purchase of 50% of Sandals deepens a strategy that Royal Caribbean has pursued for almost a decade to expand its business into other tourist experiences. During that period, it added private destinations, beach clubs, hotels, river cruises, and real estate. Within this plan, the company expects to increase its portfolio of private destinations from 2 to 8 by 2028. "We are entering the all-inclusive market for the same reason we entered the cruise market," said Jason Liberty, CEO of Royal Caribbean Group, to Travel Weekly. The executive added that the agreement with Sandals...
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This advance also includes the debut of Celebrity River Cruises in 2027, with which the company will enter the river cruise segment.
