(Jamaica Gleaner) Royal Caribbean Group’s agreement to buy half of Sandals Resorts International implies the Jamaican hotel chain will earn roughly US$600 million a year in earnings before interest, tax, depreciation and amortisation (EBITDA), which puts it on par with some of Europe’s largest resort groups.
Royal Caribbean said on Wednesday it will pay about US$3 billion for a 50 per cent equity interest in Sandals and Beaches resorts, “representing a forward EBITDA multiple of approximately 10x”.
Those two figures give the market its first public measure of the privately held group’s profitability. A 10-times multiple on a US$3-billion price for half the business points to about US$300 million in annual forward EBITDA for that stake, or roughly US$600 million for the whole group. The deal values Sandals at about US$6 billion. Sandals did not respond up to press time on the figures.
Neither company has disclosed Sandals’ revenue or profit, and the forward multiple refers to expected earnings rather than past results.
That puts Sandals roughly level with Spain’s Meliá Hotels International, which reported 2025 EBITDA, excluding capital gains, of €544.7 million, up 2.1 per cent. Meliá targets at least €565 million this year.
Riu Hotels & Resorts, the Spanish family-owned chain and one of Sandals’ main rivals in the Caribbean, earns more. Riu reported EBITDA of €702 million for 2024, covering the 51 hotels in its newly merged operating company.
Sandals earns about half as much as Hyatt Hotels, which operates several all-inclusive resorts in the region. Hyatt reported 2025 adjusted EBITDA of US$1.16 billion, up 5.8 per cent, and said Hurricane Melissa contributed to a fourth-quarter fall in its distribution earnings.
The largest chains operate on a different scale. Marriott International’s 2025 adjusted EBITDA rose 8.0 per cent to US$5.38 billion and Hilton Worldwide reported US$3.73 billion. Both earn most of their income from franchise and management fees, while Sandals owns and operates its roughly 17 resorts.
Butch Stewart founded Sandals in Jamaica in 1981, and the company has since grown into one of the Caribbean’s best-known hospitality brands. It operates the Sandals and Beaches resort brands across the region and employs about 20,000 people.
A completed deal would mark a major push by Royal Caribbean beyond its core cruise business into the all-inclusive resort market, and would likely rank among the largest transactions involving a Caribbean tourism company. Royal Caribbean already operates private destinations for its cruise passengers and has sought to expand its land-based offerings.
Royal Caribbean has secured committed debt financing from Morgan Stanley to fund the purchase. It expects the deal to close in early 2027, subject to customary approvals, and to add to its earnings next year.
Royal Caribbean Chairman and Chief Executive Officer Jason Liberty and Sandals Executive Chairman Adam Stewart will jointly lead the joint venture’s board. Stewart will keep his role guiding the resort group’s long-term strategy. Existing reservations, loyalty programmes and resort operations will continue unchanged. BofA Securities and PJT Partners advised Sandals, while Perella Weinberg Partners and Morgan Stanley advised Royal Caribbean.
Discussion