Bahía de Conejos Resort & Residences, Huatulco, Oaxaca, Mexico

Investment Opportunity

Bahía de Conejos offers a rare large-scale beachfront resort development opportunity in Huatulco, one of Mexico’s emerging Pacific Coast tourism markets. The property includes approximately 240,214 square meters (24 hectares / 2,585,642 square feet / 59.36 acres) across Lots 1A and 1B, with about 632 meters (2,073 feet / 0.393 miles) of beachfront and over 900 meters (2,953 feet / 0.559 miles) of Boulevard Santa Cruz frontage. Its appeal is driven by scarce oceanfront land, airport proximity, tourism growth, phased-development potential and multiple revenue sources.

Proposed Development Program

The preliminary master plan allocates approximately 211,640 square meters (2,278,074 square feet / 52.30 acres / 0.082 square miles) across seven developable macro-parcels, with potential gross building area of approximately 98,989 square meters (1,065,509 square feet / 24.46 acres). The program includes condo-hotels, resort villas, boutique and luxury hotels, resort residences, commercial space, restaurants, wellness uses and recreational amenities. The concept suggests up to 1,618 hotel and condo-hotel keys and approximately 917 resort residential units, subject to final approvals. The plan emphasizes low density, with an estimated 11% building footprint, significant open space, and buildings generally limited to four stories.

Market Fundamentals

Huatulco received more than 923,000 visitors in 2025, up from approximately 780,000 in 2022. In first-quarter 2026, the market recorded approximately 72.5% hotel occupancy, more than 233,000 visitors and tourism-related activity exceeding $159 million. Huatulco International Airport handled approximately 801,000 passengers in 2025, supporting continued hotel and second-home demand. Surveyed boutique hotels averaged about $176 per night, major resorts averaged about $312, and comparable condo-hotel properties averaged about $280.

Valuation and Financial Positioning

The appraisal concluded a property value of approximately $37.18 million, or $154.77 per square meter (approximately $14.38 per square foot). Preliminary analysis projects approximately $103.9 million in macro-parcel sale proceeds over six years, supported by estimated infrastructure and site-improvement costs of approximately $27.7 million. Prospective vertical project value was estimated at approximately $429 million, subject to detailed financing, construction, operating, tax, and market assumptions.

Risk Management and Due Diligence

The primary risk is entitlement, including zoning, density, height, coastal setbacks, environmental approvals, and permitted hotel and residential units. Additional due diligence should include title, easements, utilities, geotechnical, hydrological, environmental, coastal, and construction-cost studies. Phased construction, presales, contingency reserves, and milestone-based funding can help control risk.

Investment Conclusion

Bahía de Conejos offers a rare oceanfront site with the scale to become an integrated resort destination. Subject to entitlements, technical due diligence, and disciplined phasing, the project may suit a master developer, private-equity investor, family office, hotel company, or strategic joint-venture partner seeking exposure to Mexico’s Pacific resort market.