From CNBC · Contessa Brewer · · 1m 20s
Royal Caribbean buys half of Sandals for $3 billion
The cruise operator takes a 50% stake in the Caribbean resort chain, valuing it at $6 billion and expanding beyond ships into land-based holidays.
In brief
The cruise operator takes a 50% stake in the Caribbean resort chain, valuing it at $6 billion and expanding beyond ships into land-based holidays. Royal Caribbean agreed to buy a 50% stake in Sandals for $3 billion, valuing the Caribbean resort chain at $6 billion and deepening its push into land-based vacations…
Royal Caribbean buys into Sandals
Royal Caribbean has agreed to take a 50% equity stake in Sandals for three billion dollars, the companies announced Wednesday. The deal values the Caribbean resort chain at six billion dollars.
The deal is expected to close early next year
The transaction is expected to close early next year and is expected to boost growth for both Royal Caribbean and Sandals. The deal deepens Royal Caribbean's push into land-based vacations.
Royal Caribbean seeks vacation diversity
Royal Caribbean has been intent on diversifying beyond cruises and becoming a leader in vacations overall. The cruise company already operates several private destinations for its cruise passengers.
Sandals brings Caribbean foothold
Sandals and its Beaches brand operate more than a dozen properties across the Caribbean, giving Royal Caribbean a foothold in all-inclusive resort options across the region.
Royal Caribbean faces cruise headwinds
Royal Caribbean's stock is down roughly 25% over the past year after it trimmed its forecasts for revenue growth on softer demand for European sailings.
The headline
Royal Caribbean agreed to buy a 50% stake in Sandals for $3 billion, valuing the Caribbean resort chain at $6 billion and deepening its push into land-based vacations.
