A tourist development from the team behind Mandarina, a luxurious coastal development on the Pacific coast of Mexico featuring the No. 8 hotel in the world, will see an investment of US $1 billion to create Xala, another ultra-luxury resort and residential project on the coast of Jalisco.  

Located on 3,000 acres in the Costalegre region, a 240-kilometer stretch of the Pacific Coast south of Puerto Vallarta, Xala will feature at least two luxury hotels and 100 vacation residences.

According to Bloomberg, the Costalegre development is set to be one of the most expensive in Mexico in recent history, with brands such as Four Seasons and One and Only expected to form the cornerstone of the new development.

The project will focus on a 51-villa Six Senses hotel, set to be completed by 2026, according to the developers. Each room will have its own private pool, and guests will be able to enjoy a range of activities across the regions bays, mountains and nature reserves

Funding for the project has come from Morgan Stanley, venture capital fund TPG-Axon capital and the Jalisco state pension fund, as well as federal investment sources. 

Ricardo Santa Cruz, the promoter and managing partner of Tourist Assets of Mexico (Actur) told Bloomberg, that his vision is to create the lowest-density development project ever undertaken in Mexico. 

“As there was no infrastructure, much of Costalegre has been preserved,” says Santa Cruz. “For me, that is why it has the greatest potential for sustainable tourism in Mexico.”

To reach Cuixmala or the Four Seasons Tamarindo, for instance, one must embark on a four-hour drive from the Puerto Vallarta airport or a 20-minute flight on propeller planes that can land on the grass runways of Cuixmala and Las Alamandas. Although Manzanillo airport is only an hour away from the Four Seasons, it receives very few flights.

However, the new Chalacatepec international airport, which is supposed to begin operations next year according to the Jalisco Tourism Ministry, will improve connectivity for the resort.  The government has also overseen the investment of 17 million pesos for the redevelopment of highways linking the region.

As a nod towards sustainable development, the Xala project is dedicating 590 acres of the project to reforestation, to restore wilderness along the coastline.

“We are very proud of what we have done at Mandarina,” managing partner of developers Actur Jerónimo Bremer said. “Now, Xala seeks to create a unique residential community, in the way that Mandarina sought to create a world-class resort.”

With reports from Bloomberg, Travelpulse and Jalisco Quadrantín