As of this April, the Galveston Margaritaville has gone vertical. The development financed by RRAEF Holdings based in Dallas was initially framed as a $250 million investment. Since then, the project’s scope has expanded to $700 million as reported by Houston Business Journal.
In its final form, the 63-acre, mixed-use development will feature a beach cottage resort and resort hotel along with a lazy river, amenity deck, pickleball courts, and more.
Margaritaville Beach Cottage Resort
Officials have officially broken ground on the Margaritaville Beach Cottage Resort, Phase One of the development. The cottage resort will comprise of 278 single-family turnkey cottages.
Cottages come fully furnished – down to the Margaritaville blenders and personal golf carts – spanning 1,000–4,200 square feet from 2 – 6 bedrooms. Units will be priced between $1 million and $4 million.
The development will feature a range of exclusive amenities for cottage residents. Notably, Margaritaville Beach Cottage Resort will feature a 31,000-square-foot amenity deck.
Perched 20 feet above sea level, the amenity deck will feature a 400-foot lazy river, infinity pool, pickleball court, and retail spaces.
Developers plan to complete the first 100 units by the end of this year per RREAF Holdings CEO Kip Sowden.
Margaritaville Resort Hotel
This late summer, developers plan to break ground on the Margaritaville Resort Hotel. The 334-room, 15-story tower will span roughly 300,000 square feet as reported by Chron.
Resort hotel amenities include a 2.5-acre waterpark overlooking the Gulf, as well as a large ballroom, and family entertainment center with arcade. The hotel will also house the LandShark Bar & Grille and 5 o’Clock Somewhere Bar, and Salty Rim Bar. The restaurant and bars will be open to the public.
With construction expected to begin Q2/Q3 2026, developers are targeting a full resort opening for 2028/2029.
Margaritaville Resort Pushback
Over the years, there’s been ample pushback against the large-scale commercial development. Primary criticism stems from the development’s encroachment on the habitat of Galveston ghost wolves.
Despite public outcry and scientific data highlighting the site’s importance, the developer has reportedly declined to incorporate 150-foot green corridors into the site plan, leading to fears that the local ecosystem will be irreparably fragmented.
Furthermore, local residents have criticized the lack of communication from developers. Because the developer is reportedly building “by right”—meaning the plans strictly follow 15-year-old zoning laws—they are not legally required to hold public hearings or seek community approval.
Residents of neighboring East End properties have expressed deep frustration that RREAF Holdings has largely ignored their requests for dialogue regarding traffic, lighting, and environmental impact.
