Royal Caribbean Stock Loses Steam on Report of Sandals Deal

Royal Caribbean Group is nearing a deal to acquire Sandals Resorts International in a transaction valued at $6 billion, the Financial Times reported Tuesday. The potential acquisition would mark the largest in Royal Caribbean's history and represents a strategic push into the all-inclusive resort business.

Shares declined Tuesday as traders digested the news, signaling concerns about the size and scope of the deal. The $6 billion price tag would eclipse any previous acquisition by the cruise operator, raising questions about integration risk and capital deployment at a time when the cruise industry continues to manage elevated debt levels from pandemic-era borrowing.

The move would diversify Royal Caribbean beyond its core cruise operations into land-based hospitality. Sandals operates more than 15 luxury all-inclusive resorts across the Caribbean, targeting couples and honeymooners. If completed, the deal would give Royal Caribbean a foothold in a complementary leisure segment while expanding its Caribbean footprint.

No timeline for closing has been disclosed, and terms beyond the valuation remain unclear. The Financial Times first broke the story Tuesday.