Royal Caribbean has agreed to take a 50% equity stake in Sandals for $3 billion, the companies announced Wednesday.
The deal values the Caribbean resort chain at $6 billion and is expected to boost growth for both companies. The transaction is expected to close early next year.
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 cruise company has been intent on diversifying beyond cruises and becoming a leader in vacations overall. Royal Caribbean already operates several private destinations for its cruise passengers, but it has been working to build out its land offerings.
Sandals and its Beaches brand, meanwhile, have more than a dozen properties across the Caribbean, giving Royal Caribbean a foothold in all-inclusive options.
The Financial Times and CNBC earlier reported the companies were in talks.