Is Los Cabos Becoming One of the World’s Fastest-Growing Luxury Destinations?
A $900 million pipeline is all part of a new growth cycle for Baja’s flagship high-end destination.
Photo: Alejandro Cabrera
Los Cabos Tourism has confirmed a new wave of high-end development, announcing that $900 million will be invested across the destination over the next three to four years. The update, shared during VIP Summit 2025—where 350 participants from 20 countries gathered—underscored just how quickly Cabo’s luxury inventory is evolving. It also reaffirmed Los Cabos’ long-held distinction as the destination with the highest concentration of Virtuoso properties in Mexico, the Caribbean, and Latin America.
“Over the years, we’ve made our mark in the luxury tourism segment, and what we’re seeing is that the demand is there—and, in fact, it just keeps growing,” says Rodrigo Esponda, the director of Los Cabos Tourism.
That demand is supported by a hotel landscape that doesn’t resemble the rest of the region. Only a third of the area’s properties are all-inclusive, and the average room count sits around 250. Esponda describes it as a “boutique, exclusive, personalized experience” spanning vacation rentals, independent hideaways, and ultra-luxury hotels, offered both all-inclusive and non-all-inclusive. The model has produced a loyal audience: 38% of visitors return.
The corridor between Cabo San Lucas and San José del Cabo now reads like a roster of every major global luxury brand. Montage, Viceroy, Ritz-Carlton, Four Seasons, The Luxury Collection, Auberge Resorts, Grand Velas, One&Only, JW Marriott, Rosewood, Conrad, and Waldorf Astoria all maintain a presence, contributing to one of the largest concentrations of luxury hotels in the Americas.
That footprint is about to grow significantly. Los Cabos currently counts 15 Virtuoso properties, 6 Preferred Hotels, 3 Leading Hotels of the World, and 9 AAA Five Diamond resorts—and roughly 1,200 new luxury suites and residences are scheduled to enter the market before 2028.
Confirmed openings include Park Hyatt Los Cabos at Cabo Del Sol in November 2025 and the recently opened Four Seasons Resort Cabo San Lucas at Cabo Del Sol, which debuted in 2024. Looking ahead, the pipeline features Raffles Los Cabos; Soho House & Beach Club; St. Regis Los Cabos at Quivira and the St. Regis Residences; Rosewood Residences Old Lighthouse; Amanvari; Grand Hyatt; and SIRO Palmilla.
As the region moves into its next phase of development, the combination of concentrated brand power, limited-scale inventory, and expanding ultra-luxury supply suggests that Los Cabos’ growth cycle is nowhere near slowing—if anything, it’s entering a more ambitious chapter.
