The new partners said the deal will "create new opportunities for resort growth" while broadening Royal's offering across its Royal Caribbean, Celebrity Cruises and Silversea brands.

It is expected to be concluded early next year, "subject to customary approvals and closing conditions", with Royal having secured funding from Morgan Stanley.

According to Royal and Sandals, the joint venture will be rooted "in the all-inclusive resort space", in which Sandals has long been a market leader.

Royal said the partnership would speed up its ambition to cater for both sea and land guests, and grow its presence in the approximately $2 trillion global holiday market.

Sandals added the tie-in would accelerate its expansion plans to help meet "growing global demand" for its Sandals and Beaches properties.

Together, they state "the partnership will include Sandals and Beaches’ collection of premier all-inclusive properties across the Caribbean", in effect opening up the prospect of Royal selling Sandals and Beaches' product.

Aims include broadening distribution, deepening guest engagement, and making it easier for travellers to discover the holiday experiences each of the two groups offer.

The deal was signed on Tuesday (22 September) by Jason Liberty, Chair and Chief Executive of Royal Caribbean Group, and Adam Stewart, Executive Chair of Sandals Resorts.

Liberty said Royal has been working to build a holiday platform for millions, adding the partnership with Sandals and Beaches was an "important next step" bringing together two "iconic" holiday companies.

"The Stewart family has created powerful and beloved brands, and we are honoured to build on that legacy," said Liberty. "Together, we see tremendous opportunity to expand the reach of Sandals and Beaches Resorts and continue turning the vacation of a lifetime into a lifetime of vacations."

Stewart said his late father, Sandals founder Gordon "Butch" Stewart, had always believed a company built in the Caribbean could stand on the world stage alongside "the most respected names in hospitality". "Today is proof of how far that vision can go,” he said.

"This partnership is the natural next step in building on that conviction. It gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment, and the power of enduring brands."

Stewart added the partnership would create new opportunities for "travel advisor partners". Existing reservations, loyalty programmes, resort operations and cruise operations will continue as normal.

The partnership will be governed by a board led jointly by Stewart and Liberty.