Royal Caribbean and Sandals Resorts Partnership: What Travelers Need to Know
Updated: Sep 23
Big news is making waves in the travel industry! Royal Caribbean Group and Sandals Resorts International have announced a major new partnership that will give Royal Caribbean a 50% ownership interest in Sandals Resorts and Beaches Resorts.
The approximately $3 billion investment creates a 50/50 joint venture and is expected to close in early 2027, subject to regulatory approval and other customary closing conditions.
So, what does that actually mean for Sandals Resorts and Beaches Resorts guests? Will Royal Caribbean now control Sandals? Are current reservations or resorts changing?
After reading multiple news articles and attending a conference call with the Executive Chairman of Sandals Resorts, Adam Stewart, I'm happy to answer some of your questions.
Royal Caribbean and Sandals Resorts Partnership: What Travelers Need to Know
Is Royal Caribbean Buying Sandals?
No. Royal Caribbean is not buying Sandals Resorts outright. Instead, Royal Caribbean will own 50% of the company, while the Stewart family will continue to own the other 50%. So, rather than Sandals becoming a Royal Caribbean brand, this creates an equal partnership between the two companies.
It also does not mean Royal Caribbean just gets 50% of every dollar Sandals makes. Sandals still has to pay employees, operate the resorts, fund renovations, advertise, and cover all of its other expenses. Profits that are distributed to the owners would then generally be shared based on that agreed upon split.
Adam Stewart will also remain Executive Chairman of Sandals and Beaches Resorts and will continue to have an important role in the future of the brands. The new partnership will involve leadership from both Stewart and Royal Caribbean Group CEO, Jason Liberty.
The easiest way to look at it is this: Royal Caribbean is not taking over Sandals. The two companies are becoming equal partners, with both sides having a major stake in where Sandals and Beaches go from here.
Why Is This Happening?
The decision is driven by desire to grow and keep up with the competition. Over the years, I've sat in on many meetings with Sandals higher ups. I've heard both the late Gordon "Butch" Stewart and his son and predecessor, Adam, discuss their goals to expand the brand to other destinations and stay ahead of the curve.
For a small family-owned company like Sandals, it can be hard to get the necessary capital to keep up. For example, in the Fall of 2021, Hyatt bought out AMResorts brands which include Secrets and Dreams Resorts, the biggest all-inclusive competitors for the Sandals brand. That deal took almost 100 resorts in 10 countries and merged them with more than 1,000 Hyatt hotels and resorts worldwide.
Before this partnership, Sandals and Beaches Resorts already had plans for an ambitious expansion, including renovating and rebranding current Sandals resorts and adding new Beaches properties for continued $1 billion investment throughout the Caribbean. Royal Caribbean brings enormous resources that can help accelerate those plans, including significant investment capital, advanced technology, and global distribution.
What Does Royal Caribbean Get From This Deal?
For Royal Caribbean, this deal is a way to expand beyond cruising and get into the all-inclusive vacation market. By owning half of Sandals and Beaches Resorts, they are buying into an already established Caribbean brand with loyal guests, popular resorts, and a strong name in the all-inclusive space.
It also gives Royal Caribbean more opportunities to market cruises and resort vacations to the same travelers and possibly connect the two experiences in new ways down the road.
Why Royal Caribbean Cruise Line?
Sandals has spent decades building one of the best-known all-inclusive resort brands in the Caribbean. Royal Caribbean has built the largest cruise line in the world. Together, the two companies see an opportunity to grow much faster than Sandals would have been able to on its own.
In a recent interview with Travel Weekly, Adam Stewart (Chairman of Sandals) explained that Sandals had been approached by other investors over the years, including companies within the hotel industry. The Sandals team ultimately wanted a partner that aligned with the family's vision for the company and the legacy of Sandals founder, Gordon “Butch” Stewart.
According to Stewart, Royal Caribbean felt like the right cultural and strategic fit. Both companies also emphasized similarities in how they view customers, employees, travel advisors and the Caribbean communities where they operate. That may also help explain why Sandals chose a 50/50 partnership rather than simply selling the company outright.
Will Sandals be publicly traded now?
No. Adam confirmed to us on the call today that Sandals will not become a public company. This deal is simply a public company investing in a private one.
What Does This Mean for Existing Sandals and Beaches Reservations?
For now, nothing changes. In fact, this is a direct quote from Adam on our call today: "Sandals will stay Sandals."
Sandals has specifically stated that existing reservations, resort operations and loyalty programs will continue as usual. That means travelers who already have a Sandals or Beaches vacation booked should not expect their reservation to suddenly change because of this announcement.
Your resort, room category, package and existing reservation remain in place. The transaction itself is not expected to close until early 2027, and even after that, major changes are likely to happen gradually rather than overnight.
Another hopeful change could be more attractive prices and promotions. It's no secret that Sandals has been increasing pricing each year to keep up with the cost of updating the resorts. If Sandals now has this capital to use and can potentially tap into Royal Caribbean’s supply chain, that could eventually be reflected in the room rates.
Will We Eventually See Sandals and Royal Caribbean Vacation Packages?
Possibly. Per several news articles, the companies have discussed creating a broader vacation ecosystem that allows customers to discover experiences across both organizations.
However, specific cruise-and-resort packages have not yet been announced, so at the moment it's something to keep an eye on but not something being introduced immediately.
Will Cruise Passengers Start Flooding Sandals Resorts on Day Passes?
This is a huge concern for all Sandals and Beaches fans. These resorts, while at capacity, do not feel busy or overcrowded like many other resort brands. Opening up their facilities for day passes could present a major issue for guests on-resort. It's something that happened in the past and was stopped for that very reason.
Having known Sandals for a long time, I personally don't see the resorts suddenly opening up their doors to large amounts of cruise passengers without massive expansions to accommodate that. Thankfully, this was confirmed by Adam directly in the call. We will not be seeing cruise passengers at the current resort.
However, given the resorts own land all over the Caribbean, I could see maybe a hybrid-resort option being created like a stand-alone beach club - think Nachi Cocomb in Cozumel, Mexico - where Royal Caribbean guests can spend the day getting a little taste of the Sandals experience without resort guests being inconvenienced by cruise crowds.
Will Sandals Resorts Become Like Royal Caribbean Cruises?
No. Remember: "Sandals will stay Sandals." There are no plans to change the resort experience guests know today. In fact, Sandals leadership has emphasized preserving the identity and culture of the Sandals and Beaches brands. One of the perks of this deal for Royal Caribbean is the loyal Sandals fan base who are not going to remain loyal if changes occur.
Sandals has built its reputation around a very specific type of vacation: luxury all-inclusive Caribbean resorts with extensive dining, included activities, beachfront locations, butler service at select room categories and a strong emphasis on couples at Sandals and families at Beaches. That has always been a bit of a contradiction to a Royal Caribbean cruise experience.
However, what Royal Caribbean can bring to the table that Sandals has had a hard time keeping up with, are expanding entertainment, activities and technology. The cruise line is far ahead of Sandals in that department and it will be interesting to see if any of that gets integrated into the properties.
Thankfully, the partnership appears to be focused on expansion and growth, rather than on reinventing the existing resort experience. I'll be watching closely as this new partnership develops and blogging about any changes.
Could Sandals and Beaches Expand Beyond the Caribbean?
That is the plan! I've heard Adam Stewart discuss his goals to expand the brand to other destinations. There had even been talks about branching out to Mexico at one point. Today in the call, Adam confirmed this partnership is in place to take those dreams and turn them into reality.
Royal Caribbean already operates on a global scale and has the financial resources and infrastructure to support significant expansion. Sandals has traditionally been heavily focused on the Caribbean, so this partnership could eventually create opportunities for the brands to reach new destinations and new travelers, something Sandals has been excited to do for a long time.
TL;DR
Royal Caribbean is not simply buying Sandals and taking over the company. Instead, Royal Caribbean Group and Sandals are creating a 50/50 partnership designed to help Sandals and Beaches expand more quickly and reach more travelers.
Sandals leadership remains heavily involved, and the companies are publicly emphasizing growth rather than replacing the existing Sandals experience.
"Sandals is staying Sandals." Your existing Sandals or Beaches vacation is not suddenly changing.
Looking farther ahead, however, this partnership could reshape the company in some very exciting ways.
We may eventually see:
The Sandals brand reaching new parts of the world
More Sandals and Beaches properties in the Caribbean
Faster resort development and renovations
Connected loyalty recognition between Royal Caribbean and Sandals
Improved technology
Upgraded entertainment and activities on resort
Potentially more attractive pricing options and promotions
In Closing
On the call about the Royal Caribbean Sandals partnership today, Adam told us: “If you’re going to build a wonderful house you have to start with a solid foundation.” That foundation started today in the form of this deal. What Sandals plans to build in the next decade and beyond will be unlike anything they could build without the backing of a strong partnership like Royal Caribbean.
For someone who has partnered with the Sandals brand and watched it grow over the past two decades, I am pretty excited to see what this new chapter brings for my clients and for my business.
Ready to see what Sandals and Beaches have to offer today and into the future? Contact me for personalized help finding the right resort, room category, and dates for your trip — at no additional cost to you.
Information in this article is based on announcements available as of September 23, 2026. Additional details may change as the Royal Caribbean Group and Sandals partnership moves toward closing.
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