Royal Caribbean Plans to Acquire 50% of Sandals for $3 Billion
Royal Caribbean's third-quarter revenue rose 9% to $5.6 billion, with a net profit of $1.7 billion, alongside a plan to acquire 50% of Sandals for $3 billion.
Royal Caribbean announced that its third-quarter revenue rose 9% to $5.6 billion, with a net profit of $1.7 billion, exceeding its previous expectations.
The company reported a load factor of 112%, while onboard revenue increased 14%, reflecting strong demand for cruises and additional services.
The company plans to acquire a 50% stake in Sandals Resorts and Beaches Resorts for $3 billion, in a deal that enhances its presence in the resort sector.
Royal Caribbean says this stake could increase its share of guests' annual vacation spending from the 20% to 25% range to around 50%, which it views as an opportunity to expand its share of wallet per customer.
What do these terms mean?
Load factor: The ratio of passengers to the number of available beds or seats, which may exceed 100% when more than one passenger shares the same cabin.
Onboard revenue: What guests spend on dining, activities, shops, and services during the cruise.
Share of wallet: The percentage the company captures of a customer's total annual spending on vacations.
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