Royal Caribbean acquires stake in resort operator Sandals for $3 billion

Sandals faced controversy in the early 2000s over a policy that barred same-sex couples from its couples-only resorts. The company dropped the policy in 2004 after the London Underground banned its advertisements following complaints from gay rights activists.

Sandals, founded in 1981 by the late Gordon "Butch" Stewart, operates all-inclusive resorts across the Caribbean under the Sandals and Beaches brands with properties in Jamaica, the Bahamas, Saint Lucia, Grenada, Barbados, and other destinations.

Royal Caribbean Group said it has secured committed debt financing from Morgan Stanley to fund the investment.

The Financial Times first reported this week that the deal could value Sandals at more than $6 billion, citing people familiar with the matter.

Sandals has been the subject of speculation about a potential sale for nearly a decade. Reuters reported in 2017 that the company was exploring strategic alternatives, including a sale, citing people familiar with the matter.

A board jointly led by Jason Liberty, chairman and CEO of Royal Caribbean Group, and Adam Stewart, executive chairman of Sandals Resorts, will oversee the joint venture.

Stewart will remain executive chairman of Sandals and Beaches Resorts and continue to oversee the brands' long-term growth strategy.

Royal Caribbean Group said on Wednesday it had agreed to acquire a 50% stake in Caribbean resorts operator Sandals Resorts International for , expanding the cruise company's presence in land-based vacation experiences.