October 2, 2026: Royal Caribbean Group & Sandals Resort Deal
Greetings,
I want to share a story that is somewhat older news - the press release came out last week (September 23, 2026) - but, I think, is still a big deal for the aquatics industry. I will break down the players, the market conditions & why I really think you should care about this business deal as a land-based poolie.
TL; DR: Royal Caribbean Group (RCG) - the publicly-traded cruise conglomerate that owns 31 Royal ships; 15 Celebrity ships; and 12 Silversea ships - is investing $2bn to gain a 50% ownership stake in the heretofore privately-held Sandals Resorts, which owns 17 adults-only and 2 family-friendly all-inclusive resorts in the Caribbean.
The reason I want to cover this story is because the tourism/hospitality reporting I've seen just doesn't get it in my opinion (I can't comment on the financial reporting regarding debt ratios, balance sheets or ROI). From my perspective, this is a landmark business deal that will shape new aquatic construction and design for decades to come, if only based on the scale/volume of the two networks together impacting millions of guests per year.
Land-based poolies should care because whether it's a water park in Oklahoma or a cruise ship in the Caribbean, the for-profit, commercial aquatic industry leads our entire aquatic sector with innovation that is then distilled down to be more accessible for regular, local aquatic facilities and operators.
In my opinion based on 20 years in aquatics and 10 years cruising, this deal is not about adding resort experiences before/after cruises, or new departure points for future sailings, this is to give RCG developed land with proven infrastructure and in-country/local business relationships they desperately need to solve porting issues that will only rapidly accelerate by 2032 with the delivery of Discovery Class cruise ships, AND to rapidly double-down on private destinations, especially after the recent collapse of the Perfect Day Mexico project.
To give you a quick primer (I will get into more details in this week's YouTube Live because I truly am trying to keep this newsletter as short as possible...): cruise ships used to have just plain rectangular swimming pools and a few hot tubs. Water is very heavy, obviously, so when you design it on the top deck of a 12-story cruise ship, the basins have to be extremely small relative to the total number of passengers. The aquatic amenities quickly become crowded and are a big reason why lots of people will never take a cruise, as compared to the expansive swimming pools located at resorts on land.
Newer cruise ship designs launched in the last 20 years have shifted design to many other aquatic amenities such as FlowRider surf simulators, water slides, toddler-only wading pools, splash pads with large, soft play surfaces, etc. which move different demographics around the ship (mid & aft), as well providing huge visual appeal and free advertising.
For RCG specifically, this has worked well with Oasis Class and spectacularly with the recent Icon Class ships, launched in 2024, with very expensive, sold-out sailings generating reportedly millions of dollars daily for RCG.
I love Icon class ships; they're spectacular and worth every penny in my opinion, but it's not a scalable business model because the draft (ship depth) severely limits where a mega ship can dock, to say nothing of the need for local infrastructure (i.e. not a small town/port) that can support offloading 7,500 passengers and 2,500 guests for eight hours x multiple ships.
RCG is fully aware of this problem, hence why they've only ordered seven Icon Class ships total (I'll be on Legend of the Seas later this month), so they are now shifting focus to the next product line: Discovery Class (above). Discovery Class will be smaller, more intimate ships sized to go to most ports anywhere in the world. There's a finite number of cruise ports with many competing cruise lines, so future business growth exists long-term by introducing passengers to unique, less-well-known/established ports with cheaper docking fees and more availability. That's the only way to build capacity by volume.
Plenty of smaller ports exist around the world that Royal Caribbean ships don't currently visit, at all, including the Caribbean.
Let's talk about Sandals and what they get from this deal. With all due respect, I don't think the brand has the gravitas in 2026 it did when I saw television ads during the 1990s. Up until very recently, they were still trading in pretty antiquated notions of romance and aspirational luxury, such as having a 24/7 butler (some even argue perpetuating racism), that just aren’t going to meet the travel needs or interests of Millennials or Gen Z. Sandals may have a 40% returning customer rate with loyal Gen X and Boomers guests, but they haven’t been futureproofing their business beyond what's currently working.
Further, whether you blame the country where the company is headquartered or not, Sandals had an actual ban on gay couples staying at their properties until 2004. Rooms are still entirely configured with king beds for cosleeping, and any solo traveler who wants to book as part of (e.g.) a destination wedding, needs to request permission from the resort and pay a single person supplement (source: my travel agent who's been selling travel for 15+ years, including Sandals.)
When a dancer/influencer I casually follow on Instagram was sent on a sponsored trip to a Sandals Resort last year, I was surprised. Not that she accepted the free trip (I would too!) but the audio from her reel on Instagram, "Spend a day with me at the best all-inclusive resort in the world" sounded like she was reading from a press script, and not authentic to how she normally presents content. I'm not saying they don't have beautiful properties, but if a brand tells a content creator exactly what to say, you've don't understand the current social media marketing landscape.
In addition, there were travel agents who died at Sandals due to carbon monoxide poisoning; the wife of the current Sandals Resort chairman suddenly died of cancer; and I haven't even been to a Sandals property in person to read the vibes of what's happening on the ground in operations. To me, as just a casual observer reading the tea leaves, it feels like a company lacking a vision and direction after natural changes in leadership, and one that’s ripe for a phased acquisition to be folded into something bigger.
Looking at the physical locations of the Sandals Resorts (18+) and Beaches Resorts (families), they lean heavily into places that Royal Caribbean does not have either an established - or substantial - port presence: St. Vincent, Grenada, Turks & Caicos, Antigua, everywhere in Jamaica that's not Falmouth.
Do I think RCG is going to sign up hundreds of guests to visit Sandals on a day pass as an excursion? No. Do I think RCG is going to behave like MSC Cruise Line and allow open-leg cruising (where you can dis/embark dates and ports other than the set itinerary) or initiate departures from the Caribbean? No.
Short-term, yes, they could do either for a quick influx of cash and to stress test the model, but long-term I believe these properties are all going to be redeveloped – or, at the very least, substantially expanded – to become infrastructure sites within the RCG cruise ecosystem. This is where the big financial growth lies: capturing the money your cruise guests spend when they disembark on land because you’ve already maximized what they spend while captive at sea.
All the cruise lines have been criticized for building private destinations where you spend within their ecosystem by charging a drink, store purchase, onshore activity, etc. to your cruise ship account; they all do it. RCG's Coco Cay, Labadee, and Royal Beach Club. Disney: Castaway Cay. Carnival: Celebration Key, RelaxAway Half Moon Cay. Norwegian: Great Stirrup Cay. MSC: Marine Reserve.
I don’t know how RCG is going to redevelop these Sandals properties exactly, but to me it’s obvious that it's faster and easier to do this than start from scratch, as they have with individual projects like Royal Beach Club Santorini & Lelepa or the doomed Perfect Day Mexico project.
Business deals of this scale take months, if not years, to vet and wind their way through legal negotiations, so both companies have private visions for WHY they're doing this. But, at the end of the day, I think this is a very big deal and one you should be aware of as an aquatic professional.
Lastly, I cruise because I love the relaxation, but it’s also fascinating as an aquatic professional – and as a consultant who needs to stay on top of industry innovations – to see these private aquatic facilities (on land and at sea) where no expense is spared on facilities only accessible to cruise passengers.
Here's everything else going on this week:
Coast Guard training center renames pool in honor of swimmer who died in rescue operation
Stop Vancouver's $170M Pool Betrayal - Fund Our Legal Fight
I missed this until today. Is it me or is this a bit dramatic?
Pool operator fined $575,000 following Queensland child drowning
"According to the Office of the Work Health and Safety Prosecutor (OWHSP), approximately 60 people were in and around the indoor pool, while CCTV showed that no lifeguard walked its perimeter for at least 13 minutes and 25 seconds, despite the operator’s Aquatic Supervision Plan requiring roaming supervision at that level of patronage."
Not following your own written/established procedures can be just as negligent as not having any procedures at all.
Can Bathhouse, the new 'anti-spa' in Center City, cure anxieties about going to wellness spaces?
I love that the writer highlighted that this hotel is literally where Legionella was first documented. Related: New York is battling a Legionnaires' outbreak; Nearly 50 years ago, the disease was famously identified in Philly
See The Portable Pool That Could Help Prevent Hawaiʻi Youth Drownings
These are already being used extensively in Europe, including small pools on trucks.
Montclair Planning Board Rejects Swim School Amid Wave of Opposition
Although parking and historic character are important, I couldn't help but laugh when I read this statement: “I don’t feel at this point that the applicant made their case to prove that the benefits substantially outweigh the detriments,” Board Chairman Keith Brodock said. I am also curious about the "blow dry bar" concept included in the proposal.
Bjelovar opens the largest geothermal recreation park in Croatia
Indy Parks plans to move away from outdoor public pools, raising concerns among residents
A few years ago, I wrote a similar article for Pool Pro magazine entitled Here to Spray about the increasing replacement of outdoor pools.
Aquasplash closed as Legionella bacteria detected
The disappearing water: How backyard pools lose thousands of litres to the sky
Florida Swimming Pool Association and Pool & Hot Tub Alliance Reunite Through Historic Affiliation
Medford votes to close pool for 2027 season due to $62K repair bill
I understand we probably don't have the entire story here, but I'll never understand just closing a recreation facility for an entire summer season due to a relatively small budget shortfall like this. The social welfare impact to the community is further greater than $62,000.
Klobuchar, Curtis Bipartisan Virginia Graeme Baker Pool and Spa Safety Act Passes Out of Committee
4-year-old dies in Macon-Bibb after falling into trash can filled with water
Three months after child drowned, Virginia health department will toughen regulations on pools
Germany’s Kristall Palm Beach Opens Modernised Sauna World
This makes me realize we have yet to experience LED saunas here in North America yet.
For Virginia Eubanks, a Lifeguard Manual Provided the Key to Trauma Recovery
I'm waiting for this memoir to arrive on Audible!
Todd Meadows’ Final Words to His 3 Young Children Captured on Deadliest Catch Before He Fell Overboard to His Death
I don't watch this show anymore, but I find it a shocking that they document almost everything prior to his death from cold water shock on a recent episode.
ADA Reality Check
I missed this article when it first came out, but this is something I've talked about for a long, long time as an outstanding issue in our industry!
Billings South Park Pool Project Granted Over $170,000 from Mountain America Foundation
Could going for a swim save the Inglewood Pool?
Family of child who drowned at Chattanooga apartment pool files wrongful death lawsuit
MTSU Campus Recreation removes barriers with free programs for students
THIS! "“Sometimes the decision is whether to pay $25 to go on a trip or to have groceries for a week. A $10 charge can be the decision between eating for two days or playing intramurals,” said Josh Stone, Campus Rec director.
We only have one Pool & Hot Tub Alliance (PHTA) Certified Pool Operator (CPO) class in October with limited capacity: October 19-20. Registration will be closing on Monday, October 12 (Canadian Thanksgiving).
The complete 2027 CPO Class Schedule will be out in the next few weeks.
September 30 was the National Day for Truth & Reconciliation in Canada. In recognition of aquatics not being welcoming to people of all communities, I want to share research I first head by us communities until first hearing Dr. Audrey Giles present her research for the Canadian Red Cross over 10 years. I'm grateful she agreed to present a POOLaide Webinar in 2021. You can catch the replay here.
There will be no newsletter next week (Wednesday, October 7). If anything interesting crops up, please watch the Live tab on our YouTube channel since Canadians can't post news on Facebook pages due to Bill C-18.
Katie Crysdale
Lakeview Aquatic Consultants Ltd.
PS. The audio version of last week's newsletter is available here.
PPS. I'm extremely grateful to the team at the Pool Chasers podcast (RIP) for allowing me to repost my episodes in their entirety on our YouTube channel.