Sandals to earn about US$600m a year, Royal Caribbean deal implies

Royal Caribbean Group’s agreement to buy half of Sandals Resorts International implies the Jamaican hotel chain will earn roughly US$600 million a year in earnings before interest, tax, depreciation and amortisation (EBITDA), which puts it on par with some of Europe’s largest resort groups. Royal Caribbean said on Wednesday it will pay about US$3 billion for a 50 per cent equity interest in Sandals and Beaches resorts, “representing a forward EBITDA multiple of approximately 10x”.