When it comes to business strategy, sometimes meeting halfway is the best way forward. In this week’s edition of Your M&A and Corporate Partner, Connie Phelps cruises through the news of Sandals Resorts International and Royal Caribbean Group’s recent partnership and explores how b
Sandals and Beaches Resorts recently announced a new deal with leading cruise line Royal Caribbean Group, forming a joint venture between the vacation giants. Under the new partnership, Royal Caribbean will acquire a 50% equity interest in the resort company for approximately $3 billion in a deal expected to close in early 2027.
Royal Caribbean’s Announcement Video
This new partnership is not the first strategic growth move all-inclusive provider Sandals has made recently. The company currently operates 19 vacation destinations across the Caribbean, comprising 17 adults-only resorts and two family-friendly locations under its Beaches branding. In early 2025, Sandals announced a $1 billion plan to expand the reach of the Beaches family brand over the next five years by opening three additional locations and upgrading its existing Turks and Caicos Resort. More recently, following damage to several of the company’s Jamaican resort locations caused by Hurricane Melissa, Sandals announced another $200 million plan to “reimagine” three of the impacted properties, with reopenings scheduled for November and December 2026.
With its recent focus on growth and expansion, Sandals has clear reasons to partner with the large cruise operator: the deal would broaden its offerings and connect the resort brand with a similar customer base of travelers seeking Caribbean vacations.
On the other side of the joint venture, Royal Caribbean is no stranger to long-term partnerships. In 2008, the cruising giant acquired a 50% interest in TUI, a Germany-based vacation company. Their joint venture, TUI Group, offers premium, German-speaking cruising options. In 2020, the partnership expanded to add luxury cruise line Hapag-Lloyd Cruises to its portfolio.
However, the Sandals deal will be Royal Caribbean’s first foray into the multi-night, land-based resort sector. While the cruise giant does operate several private destinations in the Caribbean for passengers to visit, such as Perfect Day at CocoCay and Royal Beach Clubs, those excursions are single-day stops only. The pending partners shared an interest in finding ways for Caribbean vacationers to enjoy holiday amenities across both portfolios through potential formal packages or cross-company deals.
What Can Businesses Learn From This?
You do not always have to buy the full company to get what you want from the deal. Strategic partnerships such as the one between Sandals and Royal Caribbean stand to offer both companies new avenues to boost their current offerings and reach new markets, without carrying the same price tag or liability that often accompanies 100% ownership.
When considering a strategic partnership or acquisition, rather than assuming a full acquisition is the only way to grow your business, sometimes the better question is “How much of this business do we actually need to reach our goals?”
Have questions about how to position your company for success in strategic partnership? Contact M&A and Corporate lead Connie Phelps at cphelps@berenzweiglaw.com.
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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