Royal Caribbean's $3bn Sandals bet spooks its own shareholders

Royal Caribbean shares fell as much as 8% on 22 September after CNBC and the Financial Times reported the cruise operator is close to paying roughly $3 billion for a 50% stake in Sandals Resorts, valuing the Jamaica-based all-inclusive chain above $6 billion. That would dwarf Royal Caribbean's previous largest deal, the roughly $1 billion Silversea purchase in 2020, and would hand it control of around 20 Caribbean resorts under the Sandals and Beaches brands. The Stewart family, who built Sandals, would keep a stake under the reported structure, with Royal Caribbean holding options to buy the rest later. Investors clearly aren't convinced a cruise operator belongs in the hotel business, and an 8% single-day drop on an unconfirmed report is not a subtle verdict.