Royal Caribbean-Sandals Deal Accretive in Year One, Truist Says

02:50 PM EDT, 09/23/2026 (MT Newswires) -- Royal Caribbean's (RCL) proposed acquisition of a 50% stake in Sandals Resorts is likely to be viewed favorably because it is accretive to earnings in its first full year of ownership, rather than delayed to year two or beyond, Truist Securities said in a note Wednesday. The deal, expected to close in early 2027, received positive early industry feedback, with travel executives citing strong cross-over potential between Royal Caribbean's and Sandals' customer bases, contingent on execution, Truist said. The $3 billion deal, at a 10x EBITDA multiple, is comparable to Hyatt's (H) acquisition of Playa Hotels & Resorts last year, according to Truist. The firm estimates the transaction is about 0.5% accretive to Royal Caribbean's 2027 EPS and share price. Royal Caribbean and Sandals chief executives highlighted plans to connect loyalty programs across both customer bases and pointed to potential future use of Sandals' Caribbean real estate for cruise passenger beach clubs, though resort expansion remains the nearer-term priority, Truist said. Truist maintained its hold rating and $297 price target on Royal Caribbean. Price: 227.70, Change: -7.19, Percent Change: -3.06