Updated
Updated · CNBC · Sep 23Royal Caribbean Buys 50% of Sandals for $3 Billion as Resort Chain Is Valued at $6 Billion
3 articles · Updated · CNBC · Sep 23Summary
- $3 billion will buy Royal Caribbean a 50% equity stake in Sandals, in a deal the companies said is expected to close early next year.
- Royal Caribbean is using the acquisition to broaden its vacation portfolio beyond luxury cruises and private destinations into Caribbean resorts.
- Sandals is valued at $6 billion under the agreement, giving Royal Caribbean a major foothold in land-based travel offerings.
- Royal Caribbean shares fell 6% in Tuesday trading amid reports it was nearing a deal with the Caribbean resort chain.
Insights
Could Royal Caribbean's bold move to acquire Sandals signal the end of traditional cruising as we know it? Why did Royal Caribbean's stock drop 6% after announcing a massive $3 billion expansion into the lucrative all-inclusive resort market? How will a cruise giant's $3 billion gamble on land resorts reshape the future of Caribbean vacationing and loyalty perks?