It might take a while for the markets to come around on Royal Caribbean Group’s investment in Sandals Resorts – but reaction from the travel industry is optimistic.

In the immediate aftermath of Wednesday’s big announcement, Royal Caribbean Group’s stock dipped slightly, as investors puzzled over the new partnership that will see RCG take a 50% equity stake in Sandals. The deal is expected to close in 2027.

A cruise company getting into the resort business? There’s been plenty of development the other direction, with high-end hotel brands like The Ritz-Carlton and Four Seasons going all-in on yacht cruising in recent years. Not so much the other way around – at least not since the 1980s and Carnival’s foray into hotel ownership.

Dig a Little Deeper

Some of the concerns could stem from lack of familiarity with Sandals Resorts International. Investors are reportedly skeptical that family-driven Royal Caribbean, the group’s core brand, is a good fit with for Sandals. 

Maybe they need to see all the happy families at the recently opened Treasure Beach Village at Beaches Turks & Caicos. Once they dig a little deeper, they’ll find out that SRI’s two Beaches Resorts properties are part of the deal – and that SRI’s ‘Beaches 2.0’ focus, with US$1 billion investment in new Beaches Resorts properties (including Beaches Exuma, Beaches Barbados and Beaches St. Vincent), will be a major focus for the coming years.

The joint venture includes all Sandals and Beaches properties across the Caribbean, with an eye to expansion. 

Cruise-and-Resort Can Work

Investors are also reportedly unsure about how much a cruise company knows about land-based vacations. Cross-over can work: back in the 1990s, when Disney announced it was developing a cruise line, skepticism was rampant. But things turned out all right, didn’t they? Disney Cruise Line will debut its 11th and 12th ships in 2029, and a 13th ship in 2030. 

There’s also the enormous popularity of Disney’s cruise-and-resort vacation packages, no doubt a key consideration for this latest sea-and-land venture.

Adam Stewart, Executive Chairman, Sandals Resorts and Beaches Resorts and Jason Liberty, Chairman and CEO, Royal Caribbean Group, say existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, with the partnership “bringing additional resources to support future opportunities.”

“Both Suppliers are Dominant in the Market”

Travelweek checked in with industry leaders to get their take on this unexpected partnership, with potentially big impact for the trade.

The Travel Agent Next Door’s founder and President, Flemming Friisdahl says the deal is a good one for both companies. “Both suppliers are dominant in their market. I believe that this will maybe down the road open up ideas of people combining both products, doing a seven-day cruise and then hop off in Jamaica, stay a week, and then an option to jump back on the ship to finish the cruise. I’d also be interested to see how they may roll out the RCI or Sandals consumer recognition program down the road.”

Asked if he sees any concerns for the travel trade, Friisdahl said:  “I don’t see any red flags, but then I tend to be a cup half full person. Both companies sell direct, so as long as they keep doing what they are doing when it comes to direct sales and include agents in ALL offers, we should be good.”

At Travel Leaders Network, Stephen McGillivray, Chief Marketing Officer, congratulated the two companies on their new partnership. “As a leading seller of both brands, we see tremendous potential in bringing these two iconic vacation companies closer together. The Caribbean is in their DNA, and it’s in ours, too. Their vision of turning a vacation of a lifetime into a lifetime of vacations is music to a retailer’s ears.”

Trevello Travel Group CEO Zeina Gedeon calls the new partnership “one of the most significant moves we’ve seen in the travel industry in years. Royal Caribbean brings tremendous scale, technology, marketing and a global vacation platform, while Sandals brings one of the most trusted and respected all-inclusive brands in the Caribbean.”

The structure of the partnership is important, she says: “The Stewart family remains deeply involved, with Adam Stewart continuing as Executive Chairman, so the heritage and leadership behind Sandals remain very much part of the equation. Ultimately, this looks like a partnership designed to accelerate growth while preserving what makes Sandals special.”

Costa Rica, Asia & Europe?

Gedeon says there are three areas she’s watching with interest ahead of the 2027 closing date. First, distribution. “Sandals has built an exceptionally strong relationship with the travel advisor community, and we want to see that relationship continue to be a central part of its growth strategy.”

Second, customer relationships. “As the companies explore loyalty, technology and cross-marketing opportunities, it will be important that travel advisors remain at the centre of the client relationship.

And third, preserving the distinctiveness of the brands: “Sandals has built tremendous equity around the luxury included all-inclusive experience. That should remain a strength as the business grows.”

As for expansion, Gedeon says she’d love to see Sandals go beyond the Caribbean. “What excites me most about this partnership is the potential to take the Sandals and Beaches models to an entirely new level internationally. The Caribbean will always be the heart of the brand, and there is still significant room for growth there. But Sandals has built a proposition that could translate beautifully into other major leisure destinations around the world.”

That could include destinations like Costa Rica, she says, and even into Asia and Europe. “And I think Beaches has an equally exciting opportunity. Premium all-inclusive family travel is a global market, and there are very few brands that have the equity and expertise to do it at scale.

“That’s what makes the Royal Caribbean partnership so interesting. It isn’t simply about adding more resorts. It potentially gives Sandals the resources, reach and infrastructure to become a truly global vacation brand, while preserving the DNA that made the company successful in the first place.”

Source: Travelweek
Lead image caption: Beaches Turks & Caicos’ new Treasure Beach Village opened in spring 2026