Baja California Sur will add more than 1,230 hotel rooms between 2025 and 2027, with the vast majority of new construction concentrated in Los Cabos. Fernando Ojeda Aguilar, Undersecretary of Tourism for the state’s Ministry of Tourism and Economy (Setue), announced the figures, pointing to large-scale resort projects as the primary driver of the expansion.
The pipeline in Los Cabos includes several marquee properties. The 300-room Grand Hyatt Los Cabos at Oleada, part of a 1,200-acre development between Diamante and Rancho San Lucas, is expected to open by late 2026. The St. Regis Los Cabos at Quivira, with 120 rooms and 60 residences on 33 oceanfront acres in Cabo San Lucas, is also targeting a 2026 opening. The Park Hyatt Los Cabos at Cabo del Sol, featuring 163 rooms along La Ruta Escénica, began accepting reservations in late 2025.
Wellness Resorts and Boutique Hotels Join the Mix
Looking further ahead, SIRO Palmilla, a 120-room wellness resort from Kerzner International, is planned for 2027 in the Palmilla Reserve near San José del Cabo. That same year, the Conrad Los Cabos at Oleada will bring 130 guestrooms and 40 residences designed by the acclaimed Mexican firm Legorreta.
While Los Cabos dominates the hotel pipeline, La Paz is charting a different course. The state capital is attracting smaller boutique properties with 10 to 30 rooms each. Ojeda Aguilar said these projects align with La Paz’s identity as a quieter, nature-oriented destination compared to the resort corridor.
Security and Sustainability Drive Investor Confidence
State officials credited the expansion to strong investor confidence rooted in two factors: improved security perceptions and a commitment to sustainable tourism practices. Ojeda Aguilar noted that Baja California Sur has largely recovered from a security crisis in 2017, when a spike in violence rattled both tourist arrivals and investment.
New hotel projects are required to incorporate sustainable measures, including reductions in single-use plastics and resource-efficient technologies for water and energy. The construction boom is also expected to increase demand for local labor across the hospitality supply chain, from construction crews now to service workers once the properties open.
Baja California Sur currently ranks among Mexico’s top tourism destinations, with Los Cabos International Airport serving as a primary gateway for U.S. and Canadian visitors. The addition of over 1,200 rooms will expand the state’s hotel inventory at a time when occupancy rates have remained strong across the Los Cabos corridor.
The hotel expansion figures were first reported by The Cabo Post.