MCALLEN, Texas - A McAllen developer is proposing a $60 million to $70 million mixed-use hotel and residential tower near the McAllen Convention Center, a project that would introduce a luxury-tier hospitality concept and condominium-style living to the Rio Grande Valley.
The RGV Business Journal spoke with developers Brian Vega Alarcón and Johnny Singh at a recent RioPlex Leadership Gathering in McAllen, where both are members of the regional economic development organization.
Vega Alarcón, president of the Bravac Group, said the project is intended to meet demand for higher-end lodging while offering a residential investment model not yet common in the region.
Vega Alarcón, who has lived in the Rio Grande Valley for about 18 years, said his experience working with hospitality projects in Cancún and Monterrey influenced the concept.
“We see a lot of opportunity here in McAllen,” Vega Alarcón said. “The Valley is ready for a different level of hospitality and service.”
He described the project as competing at what he characterized as a five-star, or luxury-tier, level, noting that travelers seeking comparable accommodations often travel
outside the region, including to San Antonio or Monterrey.
The project is proposed for land near the McAllen Convention Center, an area that has seen increased hotel development activity in recent years.
Nearby developments include Embassy Suites, Cambria Hotel and a planned TownePlace Suites by Marriott, according to the developers.
Singh, developer of the TownePlace Suites project, said his hotel recently received city approval and is expected to include approximately 106 rooms.
“We coordinated our site plans, so the two developments work together with a shared entrance,” Singh said. “Together, it functions as a unified hospitality corridor of roughly 10 acres.”
Singh estimated the cost of his project at $8 million to $10 million and said construction is anticipated to begin next year.
According to Vega Alarcón, the proposed tower would rise 11 to 13 stories, reaching an estimated 130 to 150 feet, subject to Federal Aviation Administration review and other regulatory approvals.
The project would include:
“Our goal is to create a recognizable building that becomes part of the city’s skyline,” Vega Alarcón said.
Vega Alarcón said a final hotel brand has not been selected and that the company is in discussions with several major hospitality brands, including Westin, JW Marriott and Renaissance.
He said the selection process will depend on market feasibility studies, brand standards and financing terms.
The development is planned as a hotel-residential hybrid, with hotel operations on the lower floors and private residential units above.
Under the proposed structure: residential units would be sold to individual owners; owners could opt into a professionally managed rental program; and residents would have access to both private residential amenities and select hotel amenities.
Vega Alarcón said similar mixed-use models operate in other markets but emphasized that final details will depend on brand selection and regulatory approvals.
Construction on the neighboring TownePlace Suites project is expected to begin first. Vega Alarcón said his project could break ground six to nine months later, pending final approvals and brand selection.
The construction timeline is projected at 18 to 24 months.
Total investment is estimated at $60 million to $70 million, according to Vega Alarcón, not including indirect economic impacts such as job creation or related development.
Both developers said the project reflects continued growth in McAllen and the broader Rio Grande Valley hospitality market.
“This is something new for the area,” Singh said. “If executed well, it has the potential to elevate McAllen’s hospitality profile.”
Vega Alarcón said the project aims to attract investors, travelers and residents who may not have previously considered the region for luxury-tier hospitality or mixed-use living.
RioPlex’s vision is to become North America’s premier binational economic region, a unified force driving investment, opportunity, and long-term prosperity for South Texas and Northern Tamaulipas. The group hopes to unite private, public, and nonprofit partners and EDCs across the U.S. -and Mexico border to promote the region, attract investment, and expand economic opportunities through coordinated regional marketing and investor engagement.
