Royal Caribbean Group and Sandals Resorts have agreed to form a joint venture in the all-inclusive resort sector, with Royal Caribbean investing approximately $3 billion for a 50% equity interest in Sandals and Beaches Resorts. The transaction values the businesses at about $6 billion, implies a forward EBITDA multiple of about 10x and is expected to close in early 2027, subject to customary approvals and closing conditions. Royal Caribbean has arranged committed debt financing for the all-cash investment and expects it to be accretive to earnings next year. The deal is Royal Caribbean's largest acquisition to date and extends a land-based expansion strategy that includes private destinations, beach clubs, hotels, real estate and planned river cruises. Its private-destination portfolio is set to grow from two locations to eight by 2028. Investors reacted negatively after the agreement was announced, while analysts differed over whether an adults-only all-inclusive operator fits Royal Caribbean's family-focused cruise business. Goldman Sachs said the combination supports Royal Caribbean's strategy to become a broader vacation company and cited customer-base and Caribbean-market synergies. Existing reservations, loyalty programs and operations will continue unchanged, under a jointly led board headed by Jason Liberty, chairman and CEO of Royal Caribbean Group, and Adam Stewart, executive chairman of Sandals Resorts.