Sandals Resorts International, a prominent player in the global hospitality industry, is reportedly considering a significant sale of its operations, potentially valued at up to USD $7 billion. Citing sources familiar with the situation, the Wall Street Journal has indicated that the company has engaged bankers to explore this potential transaction.
Background of Sandals Resorts
Founded in 1981 by the late Gordon “Butch” Stewart, Sandals operates 20 all-inclusive resorts across the Caribbean under its namesake and Beaches brands. Following Stewart’s passing in 2021, his son, Adam Stewart, took over as executive chairman, steering the company through recent challenges.
Exploring Sale Options
The decision to explore a sale comes after years of internal family struggles that have complicated the company’s leadership. In 2017, Sandals had already taken initial steps to explore selling options by hiring Deutsche Bank, but the process was stalled due to those internal disputes.
As noted in reports, the current exploration of a sale could serve as a pivotal moment for the Jamaica-based company, emphasizing its ongoing efforts to solidify its market position. Skift highlights that this move coincides with a multimillion-dollar marketing initiative aimed at rejuvenating the Sandals brand.
Recent Developments
In conjunction with the sale discussions, Sandals Resorts has announced an ambitious USD $1 billion expansion plan for its Beaches resorts. This plan aims to double the company’s footprint over the next five years, adding new properties in key destinations like Barbados and The Bahamas.
Company’s Stance on Speculation
Despite the rumors surrounding the sale, Sandals Resorts has opted not to comment publicly on the matter, stating it adheres to a company policy of refraining from discussing market speculation. This approach underscores the company’s focus on stability and future growth amidst uncertainty.
As Sandals Resorts International contemplates its next strategic move, industry observers and investors alike will be watching closely to see how these developments unfold in the coming months.
