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# Royal Caribbean CEO On Guests Who Cruise Rivals: 'I Think That's A Fail'
- URL: https://www.bullished.co/royal-caribbean-ceo-on-guests-who-cruise-rivals-i-think-thats-a-fail-ff49d0bb/
- Published: 2026-10-27T15:23:12.000Z
- Updated: 2026-10-27T15:23:12.000Z
- Description: Jason Liberty defended the roughly $3 billion Sandals & Beaches stake as a way to keep guests inside Royal Caribbean's family of brands.
- Author: Matteo Parrino
- Tags: Earnings, RCL, Industry: Consumer Discretionary

[Royal Caribbean](https://www.bullished.co/tag/rcl/) Chairman and CEO Jason Liberty said on the company's third-quarter earnings call Tuesday that a Caribbean customer who sails with a competing cruise brand is "a fail," as he defended the roughly [$3 billion](https://finance.yahoo.com/markets/stocks/articles/royal-caribbean-rcl-q3-earnings-123006531.html?.tsrc=rss&ref=bullished.co) purchase of a 50% stake in Sandals & Beaches Resorts. Royal Caribbean, which owns the Royal Caribbean, Celebrity Cruises and Silversea cruise brands, wants guests to stay in its ecosystem across occasions.

## Defining a lost guest

Asked by a Mizuho analyst how many Sandals guests also cruise, Liberty said that if a Caribbean customer goes on a competitive cruise brand, "I think that's a fail." Next year, he said, a customer who is not traveling on Celebrity River across the company's ecosystem would be the same.

He said guests who go to all-inclusive resorts in the Caribbean "should be going to Sandals and Beaches." Keeping them in the ecosystem brings better margin and repeat bookings, he said. Today a customer might leave the ecosystem for river cruising, he noted.

CFO Naftali Holtz said a good portion of Sandals guests cruise, with room to grow, and that they do sail on competitors. He said river cruising and all-inclusive stays have both been incremental occasions rather than substitutions.

## The wallet math

Liberty said the company captures only 20 to 25% of its guests' annual vacation spend. About 30% of guests took a Caribbean all-inclusive vacation in the last two years, and adding such resorts to the ecosystem expands reach to roughly 50% of the vacation wallet, he said.

The approximately $3 billion buys 50% at ten times forward EBITDA, a profit measure, and is expected to add to earnings immediately while keeping leverage within targets, Liberty said. He sees several hundred million dollars of synergies over time, on both revenue and cost.

The portfolio has 18 all-inclusive resorts and more than 1,000 acres of undeveloped Caribbean land, much of it next to existing resorts, included in the price. Three new beach resorts are planned. Liberty said the ships will not tender guests into Sandals resorts: "Sandals needs to be sandals."

## Little 2027 earnings help

Holtz said the contribution to 2027 earnings will be immaterial and depends on when the deal closes. It is expected to close in early 2027, accounted for as an equity-method investment reported one quarter in arrears. He does not expect further contributions beyond the purchase price.

The quarter itself beat: revenue grew 9%, adjusted earnings per share were [$6.57](https://www.marketwatch.com/story/royal-caribbean-lifts-full-year-forecast-after-posting-higher-quarterly-profit-update-3798c318?ref=bullished.co), and full-year adjusted EPS guidance rose to $17.85 to $17.95\. Full-year net yields are expected to grow about 2.1%.

Management said it will fold Sandals & Beaches equity income into guidance after the deal closes in early 2027 and give more detail then.

### Sources

- [Royal Caribbean (RCL) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates](https://finance.yahoo.com/markets/stocks/articles/royal-caribbean-rcl-q3-earnings-123006531.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Royal Caribbean Lifts Full-Year Forecast After Posting Higher Quarterly Profit -- Update](https://www.marketwatch.com/story/royal-caribbean-lifts-full-year-forecast-after-posting-higher-quarterly-profit-update-3798c318?ref=bullished.co) — MarketWatch
- [Royal Caribbean: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/royal-caribbean-q3-earnings-snapshot-103642503.html?ref=bullished.co) — Associated Press
- [Royal Caribbean Stock Jumps. Earnings Beat Is Good News for Cruise Fuel Fears.](https://www.barrons.com/articles/royal-caribbean-earnings-stock-price-bf61ed12?mod=WTRN%5Fpos5&ref=bullished.co) — Barron's
- [Carnival vs. Royal Caribbean: Which Cruise Line Stock Has an Edge Now?](https://finance.yahoo.com/markets/stocks/articles/carnival-vs-royal-caribbean-cruise-135600642.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Royal Caribbean Group

- [Royal Caribbean Lifts 2026 Profit Outlook To $17.85-$17.95 A Share As Late Bookings Beat Its Own Guidance](https://www.bullished.co/royal-caribbean-lifts-2026-profit-outlook-to-17-85-17-95-a-share-as-late-bookings-beat-its-2a826c5b/)

[All Royal Caribbean Group (RCL) coverage →](https://www.bullished.co/tag/rcl/)