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A major development is reshaping the ownership landscape of one of the Caribbean’s best-known tourism brands.

Royal Caribbean Group has agreed to acquire a 50% equity stake in Sandals and Beaches Resorts for approximately US$3 billion, creating a partnership that values the resort business at roughly US$6 billion. The transaction is expected to close in early 2027, subject to customary approvals and closing conditions. RCCL Investors –

For Jamaica, however, this is more than another major international tourism transaction.

Sandals is a Caribbean brand with deep roots in Jamaica, where Jamaican entrepreneur Gordon “Butch” Stewart founded the company in 1981. The first Sandals resort opened in Montego Bay, establishing the foundation for what would become a major all-inclusive resort business across the Caribbean. Sandals

The deal therefore brings a Jamaica-born hospitality company into a partnership with one of the world’s largest cruise operators at a valuation of approximately $6 billion.

From a Montego Bay Hotel to a Caribbean Hospitality Brand

Sandals’ story began in Jamaica.

In 1981, Stewart purchased the Bay Roc hotel in Montego Bay and transformed it into what became Sandals Montego Bay, the flagship of his emerging resort company. Sandals subsequently expanded beyond Jamaica, developing properties across multiple Caribbean destinations. Sandals News

The company now operates Sandals and Beaches properties throughout the region. Sandals says its business has grown to 20 resorts across 10 Caribbean islands, while a 2025 company account said the organization had more than 20,000 team members across nine islands. Sandals

That expansion transformed Sandals from a Jamaican resort operation into a recognizable Caribbean hospitality brand.

The company remains closely associated with Jamaica, where its roots were established and where it continues to operate multiple properties.

Royal Caribbean’s Move Beyond the Cruise Ship

For Royal Caribbean Group, the transaction represents a significant expansion beyond its traditional cruise business.

The company already operates cruise destinations and private vacation experiences, but the Sandals partnership gives it a substantial position in the land-based, all-inclusive resort market. Royal Caribbean described the transaction as a way to broaden its vacation portfolio and participate in additional parts of the global vacation market. RCCL Investors –

The partnership combines Sandals and Beaches’ resort operations with Royal Caribbean Group’s broader vacation platform, which includes Royal Caribbean, Celebrity Cruises and Silversea, as well as its private destinations and other vacation offerings. RCCL Investors –

In practical terms, Royal Caribbean is moving from selling vacations primarily at sea toward building a larger ecosystem that includes cruises, private destinations and resorts.

What the $3 Billion Investment Means

Under the agreement, Royal Caribbean will acquire a 50% equity interest for approximately US$3 billion. The transaction represents a forward EBITDA multiple of approximately 10 times, according to the companies.

The resulting partnership will be jointly governed, with Adam Stewart, Sandals’ executive chairman, maintaining a leadership role alongside Royal Caribbean Group Chairman and CEO Jason Liberty. Existing reservations, loyalty programs and resort operations are expected to continue as usual. RCCL Investors –

The deal is expected to close in early 2027.

It also means the Stewart family is not simply walking away from the company founded by Gordon “Butch” Stewart. Instead, the family will remain involved while Royal Caribbean becomes an equal equity partner.

A Major Deal for a Jamaica-Born Company

The scale of the transaction is significant.

Sandals had already attracted attention from potential buyers before the Royal Caribbean agreement. In 2025, reports indicated that Sandals had engaged investment bankers to explore a possible sale, with a valuation reportedly in the US$6 billion to US$7 billion range. The Wall Street Journal

The eventual Royal Caribbean agreement now places the company at an implied valuation of approximately $6 billion.

That makes the transaction an important moment not only for Sandals but also for Jamaica’s place in the international tourism industry.

The company was created in Jamaica, expanded throughout the Caribbean and has become one of the region’s most recognizable hospitality brands. Its development illustrates how a Jamaican-founded enterprise can grow beyond the island and establish a regional footprint.

The Stewart Legacy

The transaction also marks another chapter in the legacy of Gordon “Butch” Stewart, who died in 2021.

Stewart built Sandals after acquiring the Montego Bay hotel that became his first resort. His son, Adam Stewart, subsequently assumed leadership of the company and remains executive chairman. Sandals

The younger Stewart will continue playing a leadership role under the new partnership.

That continuity is notable because the company is moving into a new ownership structure without completely severing its connection to the family that created it.

Jamaica’s Role in the Next Chapter

While Sandals has become a Caribbean-wide brand, Jamaica remains central to its identity.

The company continues to invest in its Jamaican properties. In March 2026, Sandals announced a US$200 million transformation of three Jamaican resorts — Sandals Montego Bay, Sandals South Coast and the property formerly known as Sandals Royal Caribbean. Sandals News

The Royal Caribbean partnership therefore arrives while Sandals is simultaneously investing heavily in its Jamaican operations.

For Jamaica, the larger question will be how this new chapter affects the country’s tourism industry, employment, investment and the long-term relationship between internationally connected tourism companies and the communities where they operate.

The financial transaction itself is straightforward: Royal Caribbean is investing approximately $3 billion for 50% of Sandals and Beaches Resorts, implying a $6 billion valuation.

But the broader significance reaches further.

A company that began with one resort in Montego Bay, Jamaica, in 1981 has grown into a major Caribbean hospitality enterprise and is now joining forces with a global cruise company seeking to expand its definition of what a vacation business can be. Sandals News

For Sandals, it is a new ownership chapter.

For Royal Caribbean, it is a major step into land-based vacations.

And for Jamaica, where the Sandals story began, it is another reminder that one of the Caribbean’s most valuable tourism brands was born on the island’s north coast.