Wednesday, January 22, 2025

Developers to invest US $1B in exclusive Costalegre resort project

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.

Costalegre
The Costalegre coastline is comparatively underdeveloped compared to other luxury tourism destinations in Mexico. (Costalegre/X)

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. 

The new Chacalatepec International Airport, Jalisco’s third, will directly connect travelers with the new development in Xala. (Siop)

“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

4 COMMENTS

  1. Well……why not? At Careyes there’s already 170 peso Margaritas and $90p tacos, burger and fries for $360p. So the town of Chacalatepec can all be employed at the new Xala resort built for the 1% ters, Oh how nice! I hope it dies like the club Med in Chemala. Or the Tamarindo outside of Melaque, Or the 38 room ghost hotel at El Tecuan.The Costalegre is riddled with hotels that are no more…… the $15p tacos are next

  2. There have been plans to develop that region since at least 2010 with some big names and big money involved (aside from this project).

    It’s nice for the developers to have virgin ecology to destroy because the land is cheap and you don’t have many neighbors, and it also means the cartels aren’t there yet and the bureaucracy/politicians aren’t yet in the habit of asking for exorbitant bribes.

    I’m not sure how the labor market works in a deserted area, though.

  3. Oh great……more destruction of the environment in the name of “sustainable” tourism. How is carving up the environment and flying on jets sustainable?? Another disaster for Mexico. Hopefully this project does not get off the ground.

  4. As a permanent resident living in an isolated and rugged area of Baja California Sur with it’s stunning beaches, Development has become a double edged sword as in the communities of Los Barriles and La Riberia. The influx of lots of USD brings a new prosperity initially, then inflationary prices hit with a bang forcing the low income residents to leave the newly degraded natural environment. However, leave the transportation routes primitive and limit the types of construction then a retention of the nostalgia can exist, as witnessed in Cabo Pulmo.

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