Durrant Pate/Contributor

The Wall Street Journal is reporting that Jamaica-based luxury hotel operator, Sandals Resorts International (SRI) is restarting efforts to sell the business, after years of family infighting following the death of its founder, Gordon ‘Butch’ Stewart.

The American publication earlier this week reported that the selling agents are looking to fetch between US$6 billion and US$7 billion for SRI, which has all-inclusive couples resorts around the Caribbean. “The Jamaican-based luxury all-inclusive operator has engaged bankers to explore a sale process,” WSJ reported, citing anonymous sources.

The move, according to the Wall Street Journal, comes as the Sandals brand makes a multi-million dollar marketing push. SRI reportedly last explored selling the business in 2019 but those plans were derailed by COVID-19 and the 2021 death of ‘Butch’ Stewart, who founded Sandals in 1981 as one employee at a 99-room property.

The report seems to contradict ongoing efforts by SRI to both upgrade and build out more hotels across the region. Sandals is the best-known Caribbean brand in the world and it was founded in Jamaica. The intention was for it to endure and exemplify excellence in the resort business.

Since ‘Butch’ Stewart passed away in 2021, his son Adam Stewart as executive chairman has added three more hotels and will be making further investments in the Beaches brand in Barbados, Bahamas, Jamaica and the Turks & Caicos.

Sandals has embarked on a dozen expansions of resorts over the last four years. The Wall Street Journal’s valuation will pique interest at US$6 to US$7 billion considering only five years ago, Bloomberg arrived at a valuation of US$4 billion for the entire chain.

In an effort to get greater clarity on this Wall Street Journal story, Our Today reached out to SRI, which issued a statement: “You may have seen recent media reports about investor interest in Sandals Resorts. This isn’t a new topic for us and tends to come up from time to time. As a leader in hospitality, Sandals consistently attracts attention from global investors, which can lead to speculation.

“At the same time as you know, we’ve recently made some exciting announcements about major investments in the future of the brands, highlighting the company’s commitment to growth and innovation. While we appreciate the interest, our focus remains where it matters most: providing exceptional experiences and service to our valued guests.”

Will the sale materialise?

The Wall Street Journal maintains, that if the sale materialises, the transaction could rank among the largest real estate deals of the year. Sandals is one of the largest employers in the Caribbean with an approximate 20,000 staff complement. 

Travel news outfit Skift contacted Sandals Resort for a response to the news but a spokesperson responded, “Sandals Resorts does not comment on market speculation.” 

No decision has been finalised, and Sandals may decide against a sale, sources explained. Sandals owns and runs luxury properties in Jamaica, the Bahamas, Saint Lucia, Grenada, Barbados, Antigua, Curaçao, Turks and Caicos and St Vincent.

It has acquired land that could potentially double its footprint, the company reported in December.

However, the renewed sale effort could be strategic given that major hotel groups like Hyatt, Marriott, and Accor are aggressively expanding their all-inclusive portfolios with Hyatt last month agreeing to acquire Playa Hotels & Resorts, which operates 24 resorts in the Caribbean and Mexico for US$2.6 billion, including debt.

These brands do not have the Caribbean flavouring, cache and brand recognition of Sandals which is synonymous with the region.

According to the media report, Sandals’ multimillion-dollar marketing push dubbed ‘Made of Caribbean’ is currently running throughout this year with the campaign blanketing prime media real estate (Times Square, the Super Bowl, Golden Globes) and less traditional outdoor marketing, such as ads on rideshare vehicles in major cities. 

The saturation approach aims to reposition Sandals beyond its wedding and honeymoon associations as a gateway to authentic connections.

All indications are Sandals intends to grow its presence and up the ante.