Royal Caribbean nears $3 billion deal for 50% Sandals stake

Royal Caribbean is nearing an agreement to acquire a 50% equity stake in Sandals for roughly $3 billion, according to a person familiar with the matter. The transaction values the Caribbean resort chain at $6 billion and is intended to boost growth for both businesses. The discussions are ongoing and may not lead to a final deal.

Shares of Royal Caribbean fell about 6% following the news, which was first reported by the Financial Times. Over the past year, the company's stock has declined roughly 25% after it lowered its revenue growth forecasts due to softer demand for European cruises.

The cruise operator has aimed to diversify beyond ships to establish a broader vacation business. While Royal Caribbean already operates several private destinations for its cruise guests, buying into Sandals would expand its land-based reach. Sandals and its Beaches brand run more than a dozen properties across the Caribbean, providing access to the all-inclusive resort market.