Royal Caribbean Reportedly in Talks to Purchase Sandals Resorts

Royal Caribbean Group is reportedly in talks that may culminate in the purchase of a majority stake in Sandals Resorts International, including 20 all-inclusive hotel resorts across the Caribbean. With Sandals valued at more than $6 billion (USD), this could be the biggest deal in the cruise company’s history.

According to the Financial Times, the cruise company is in talks for the purchase, though no deal has yet been finalized and sources close to the negotiations note that the deal could still collapse without an agreement.

If successful, however, Royal Caribbean Group could gain the position of controlling shareholder in the resort company, with the possibility of taking full control in the future.

This would give Royal Caribbean Group the ability to sell both land and sea vacations, as well as create combination packages and integrated marketing that could appeal to a wide range of travelers familiar with one brand or both.

Neither Royal Caribbean Group nor Sandals Resorts International has commented publicly or released any statement on a potential deal or negotiations. Sandals Resorts International noted to the Jamaica Gleaner that it does not comment on market speculation.

Royal Caribbean’s Land-Based Operations

With the success of Royal Beach Club Paradise Island in Nassau and further development of the “Ultimate Destinations” under the Royal Caribbean brand, the cruise company is showing growing interest in land-based opportunities.

Perfect Day CocoCay has become a favorite destination of cruise guests, while the beach club concept is being expanded to Santorini, Cozumel, and Lelepa, Vanuatu.

This diversity gives Royal Caribbean additional revenue streams, even when ships are not visiting the destinations, as day passes and chartered events can be accommodated at land-based locations.

Following this model, acquiring dedicated land-based resorts would further expand Royal Caribbean Group’s influence in different types of vacation travel and give guests both on ships and at resorts even more options to enjoy with a familiar brand.

Would Sandals Fit the Royal Caribbean Brand?

Jamaica-based Sandals Resorts International was founded in 1981 by Gordon “Butch” Stewart and today operates couples-only resorts in Jamaica, Saint Lucia, Barbados, the Bahamas, Antigua, Curacao, Grenada, and Saint Vincent.

The first resort opened in Montego Bay, which has also been the site of numerous vacation innovations from the company through the years, including the first swim-up bar in the Caribbean as well as the first-ever overwater villas in the Caribbean.

While Royal Caribbean is not an adults-only cruise line, the addition of adults-only spaces at different destinations has proven popular with cruise guests.

Furthermore, options such as The Key and different dining and drink packages mimic some of the resorts’ all-inclusive features and elevated service. Sandals Resorts already bundle most vacation costs into a single fee, including all dining, accommodations, select watersports and land-based activities, WiFi access, airport transfers, drinks, and gratuities.

Sandals Resorts have become popular as destination wedding venues, honeymoon hotspots, and of course, luxury vacations, all the same market highlights of many cruise vacations.

In addition to the couples-only resorts, the company also operates its sister brand, Beaches Resorts, for families. Together, the brands are one of the largest private employers in the Caribbean.

Should this purchase become reality, the options for Caribbean cruise-and-resort vacations could change dramatically in the years to come, with Royal Caribbean pioneering a new model far more extensive than other cruise lines can offer at this time.