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Friday, March 21st, 2025

Sandals Resorts International, the famous name of luxury all-inclusive resorts across the Caribbean, is currently in discussions to sell the company. This important decision comes after years of uncertainty and civil war after the death of founder Gordon “Butch” Stewart in 2021. Butch’s son, Adam Stewart, took over the role of executive chairman, but faced an internal battle over ownership. These challenges, coupled with the evolving landscape of tourism around the world and growing interest from major hospitality players such as Hyatt and Marriott, have led to our current exploration of potential sales.

For the travel industry, this news could mark a monumental change. The pillar of all inclusive Caribbean resort models, sandals become synonymous with a luxurious vacation, combining white sand beaches with world-class amenities. Potential sales offer a unique opportunity for major hospitality groups to expand their footprint in the Caribbean, particularly in the comprehensive resort segment.

Transactions and potential buyers

Sandals Resorts can sell from $6 billion to $7 billion, according to a report from The Wall Street Journal. This evaluation may change, but it is clear that this is not a small transaction. Interest from global hospitality giants such as Hyatt, which recently acquired Playa Hotels & Resorts, and Marriott, which is expanding its comprehensive offering, underscores the growing demand for comprehensive resort models. These companies are already key players in the luxury travel sector and want to capitalize on the booming tourism sector in the Caribbean.

However, despite speculation and reported interest from these hospitality Titans, sales are not guaranteed. Internal negotiations and complex family dynamics during play can slow or change the outcome. Although the sales debate is in its early stages, it reflects an increase in consolidation of the Caribbean resort market, and industry leaders want to secure an even larger share of the lucrative, all-inclusive market.

Sandal Resort: An outstanding legacy

Founded in 1981 by Gordon Stewart, the Sandal Resort revolutionized its comprehensive model. Featuring unparalleled luxury and world-class service, Caribbean properties set new standards for hospitality. The company’s growth was driven by its commitment to providing guests with everything they need for a perfect tropical holiday, including gourmet dining, premium drinks, water sports and luxury accommodation.

After Butch Stewart passed away, his son, Adam Stewart, became executive chairman. Under his leadership, the brand continued to expand, but internal frictions over ownership over its ownership overshadowed the company’s future. The continued internal conflict has led to continued consultations on potential sales as families seek to navigate the leadership transition.

Comprehensive Models and their growing appeal

The sale of sandal resorts also highlights a larger shift in the hospitality industry to large resorts, particularly in the Caribbean. In recent years, all inclusive properties have become popular among travelers looking for a hassle-free holiday experience. With its upfront availability of food, drinks and activities, the comprehensive resort is an attractive option for families, couples and even solo travelers.

As demand for this type of holiday increases, major hotel chains are increasingly craving investments in these models. For example, Hyatt’s acquisitions of Playa Hotels & Resorts and Bahia Principe Hotels & Resorts highlight the company’s commitment to expanding its portfolio in the region. Similarly, Marriott shows its focus on comprehensive products such as the launch of Marriott All Inclusive Resorts and the Sign Collection All Inclusive Resorts. This shows that this trend is not fleeting, but a long-term investment in evolving markets.

With an established brand and a loyal customer base, sandals are considered the main acquisition targets for these large players looking to bolster their comprehensive resort offering. The deal could significantly reconstruct the Caribbean resort landscape and shift the region’s competitive dynamics.

What’s next for Sandal Resort?

Despite potentially looming sales, Sandal Resort is moving forward with plans for expansion. The company recently announced the launch of new beach brand properties, including an expansion to Turks & Caicos locations.

Furthermore, the sandals have not only expanded their physical footprint, but also expanded the brand’s presence, as well as the one year anniversary of the fortunes of St. Vincent and Grenazin’s. This expansion, coupled with the company’s history of innovation in luxury hospitality, suggests that sandals will remain a key player in the Caribbean tourism sector, even if their ownership changes hands.

However, the outcome of these sales consultations could determine the company’s future growth trajectory. Whether it’s in the hands of the Stewart family or being acquired by a global hospitality leader, sandals will be felt for years to come.

Potential challenges and considerations

Potential sales at Sandals Resorts offer buyers an exciting opportunity, but also comes with challenges. A transition of ownership can disrupt a company’s business, especially if there is a significant change in management or brand strategy. Sandals builds a reputation for offering a certain type of luxury experience, and changes in direction can alienate a dedicated customer base.

Furthermore, growing interest in comprehensive resorts in the Caribbean could lead to increased competition. New players entering the market, including companies backed by large hospitality companies, could disrupt the market share of sandals. To maintain that position, the company needs to continue innovating and deliver a unique experience that sets it apart from its competitors.

Conclusion: The future of sandals and the Caribbean’s comprehensive market

The potential sales of sandal resorts mark a pivotal moment in the hospitality industry in the Caribbean. The market is ready for a major transformation as global hospitality players such as Hyatt and Marriott show growing interest in comprehensive resort models. Whether the company remains under the Stewart family’s control or being sold to larger organizations, the future of sandal resorts will undoubtedly play a key role in shaping the local tourist landscape for years to come.