Royal Caribbean Group chairman and CEO Jason Liberty described his examination of Sandals as “like looking in the mirror” as he formed a 50-50 joint venture to fund Sandals’ growth. In an exclusive interview, Liberty, sitting next to Sandals executive chairman Adam Stewart, said the match of cultures convinced them both that this opportunity is going to work out.
The opportunity is taking the Sandals and Beaches brands global, with Royal Caribbean investing $3 billion to own half of Sandals. According to Stewart, the investment will help Sandals to “stretch our legs out” beyond the English- and Dutch-speaking Caribbean.
Global Expansion
Liberty concurred, saying that the ability to grow the brand globally is supported by “a lot of data around what consumers are looking to do.” Both companies hope to leverage their “collective ecosystem,” with Stewart noting that their customers often overlap, as “we know our customers are with Royal Caribbean at times, and we know that their customers are with us at times.”
The collective ecosystem will include connecting loyalty programs, with Liberty stating that the plan is to recognize customers’ status across both companies. “When a Sandals customer is on one of our ships, we want them to be recognized for their status,” Liberty said. “And vice versa.”
Jason Liberty said Royal Caribbean and Sandals plan to connect their loyalty programs. The goal is to give mutual incentives for both customer bases to look at all options within a new vacation platform.
Cultural Alignment
Liberty referenced the debut of Celebrity River Cruises in 2027, saying that Royal Caribbean is entering the all-inclusive market for the same reason they entered river cruising: to provide a lifetime of vacations. He emphasized that the top priority for now is Sandals’ resort expansion, with a focus on adding more keys and experiences.
Adam Stewart noted that the 20 existing resorts will remain as they are, but the company is always thinking about the next generation of all-inclusives. “There’ll always be evolution, and I think that will accelerate,” Stewart said. “But the idea is to always have the Sandals/Beaches DNA pull through.”
Both executives emphasized the importance of relationships and values, both personal and corporate, in the deal. Stewart said that having the right cultural fit was essential, and that it “just felt right” with Liberty and his team. Liberty noted that the companies share a mission to deliver the best vacation experiences responsibly, and that they see clear alignment in their values.
As Liberty explained, the alignment brings excitement and a willingness to invest time, not just financially. He feels “really good about what’s happening” and believes that the partnership will deliver on Sandals’ aspirations and the original vision of the company’s founder, Gordon “Butch” Stewart. Both companies put a lot of focus on travel advisors, and that also will continue, both executives agreed. Liberty said the joint venture “will make it better and easier to sell more vacations.”
With the joint venture, guests will benefit from loyalty and recognition programs while exploring experiences across different businesses. Liberty stated that the combination of the two companies marketing to each other’s customers will create an entity that “will be as commercially capable as possible to deliver vacations of a lifetime.” Liberty added that there will be “opportunities on the margins” regarding purchasing and supply chains, but he noted that was not a primary driver of the deal. Royal Caribbean’s investment will enable Sandals to expand its operations, with Stewart saying that it will allow the company to “stretch our legs out” and take the Sandals and Beaches brands to a global audience.
