The Royal Caribbean Group is known for its cruise ships and private islands but it has now entered a new sector: hotels.
The parent company behind Royal Caribbean, Celebrity Cruises and Silversea has taken a 50 per cent stake in resort company Sandals.
The deal is worth approximately $3 billion (£2.27 billion) and includes Sandals and Beaches Resorts’ all inclusive properties.
Analysts have speculated that the cruise line could now offer packages that include both hotel stays and sailings, or open its own branded resorts.
According to the company, the deal is currently focused on expanding and supporting the current portfolio of 17 Caribbean properties.
In recent years, the group has been expanding into private beaches and islands for cruise guests while building megaships such as Legend of the Seas.
A Royal Beach Club opened in the Bahamas last year and in Santorini this summer, while guests can visit its private CocoCay island during Caribbean cruises.
Additionally, Royal Beach Club Lelepa is also being developed in the South Pacific on the island of Vanuatu.
Meanwhile, the Perfect Day Mexico private island experience is due to launch in 2027.
Jason Liberty, chairman and chief executive of Royal Caribbean Group, said: “We have been building a vacation platform that brings joy to millions of people around the world and creates meaningful relationships that last with our guests.
“Our partnership with Sandals and Beaches Resorts is an important next step on that journey – bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world.”
The joint venture will be governed by a board under the shared leadership of Liberty and Sandals chief executive Adam Stewart.
He said: “My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality.
“Today is proof of how far that vision can go.”
Marc Shoffman
