Private real estate development company RREAF Holdings, has partnered with Innisfree Hotels to develop a brand-new Margaritaville resort in Galveston, Texas. The deal totals just more than $250 million. Once complete, the resort will occupy 300,000 square feet, making it one of the largest developments in eastern Galveston.
The property will have 334 rooms and include a 2.5-acre elevated water park overlooking the beach, four restaurants and a ballroom. RREAF Holdings has secured all the required approvals from the City of Galveston and will break ground in early 2024.
"The Galveston market has exponential growth opportunities stimulated by its economy and the evolution of people moving to Texas in the past two years," RREAF Holdings CEO Kip Sowden said in a statement. "We are honored to work with such distinguished companies as Innisfree Hotels and Margaritaville. With best-in-class management and highly amenitized options for our customers, we are offering a premier experience in a well-positioned hospitality asset for a fruitful future."
Galveston saw an economic boom in 2022 with more than 8 million visitors, an increase of 25 percent from 2021, with expectations for even more growth this year. Additionally, the Houston metro area has continued to grow since 2020 making Galveston an attractive drive-to leisure destination for residents.
"The City of Galveston staff has been great to work with and we are looking forward to continuing the relationship as we develop this world-class project on Galveston Beach," said Carl Schwab, president of RREAF Development Services. "Once we break ground in early 2024, our teams will work diligently to build and execute a resort that meets consumer demand in Galveston."
"This is our fifth joint venture and ninth beachfront hotel with RREAF Holdings which exemplifies our successful commitment to adding premier developments to growing local, hospitality markets like Galveston," said Ted Ent, president and CEO of Innisfree Hotels.
Resort amenities will include pickleball courts, a family entertainment center, a lazy river along with an adult pool, and signature Margaritaville food and beverage options.