Royal Caribbean charts new course with Sandals partnership

Royal Caribbean Cruises Ltd ( NYSE:RCL ) has agreed to acquire a 50% stake in Sandals and Beaches Resorts for approximately $3 billion, expanding the cruise operator into the all-inclusive resort market. The partnership will combine Sandals and Beaches Resorts' all-inclusive resort expertise with Royal Caribbean Group's vacation platform, including its cruise brands and private destinations. The joint venture expands Royal Caribbean Group into an adjacent vacation category and increases its participation in the approximately $2 trillion global vacation market. Royal Caribbean operates 71 ships sailing to more than 1,000 destinations through its three wholly owned brands - Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises. The partnership is intended to accelerate the expansion of Sandals and Beaches Resorts while broadening the experiences available across Royal Caribbean Group's vacation platform. Executives from both companies described the partnership as a natural fit. “We see tremendous opportunity to expand the reach of Sandals and Beaches Resorts,” said Jason Liberty, chairman and chief executive of Royal Caribbean Group. He described the partnership as “an important next step” in the company’s vacation platform. The joint venture will be governed by a board under the shared leadership of Royal Caribbean Group chief executive Jason Liberty and Sandals Executive Chairman Adam Stewart. The partnership combines Sandals and Beaches Resorts' more than four decades of Caribbean hospitality experience with Royal Caribbean Group's cruise, private destination and vacation platform. The companies will explor...