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Oasis Pool at Palmilla Beach

Proposed $66M Hotel & Conference Center at Palmilla Beach Resort

Blog May 3, 2026

The Port Aransas City Council is taking an early step toward possibly building a new hotel-conference center in partnership with Palmilla Beach Resort and Golf Community.

On March 25, council members unanimously approved allowing the city manager to begin negotiations after Palmilla proposed a roughly $66 million project. The vote does not commit the city to anything yet—it simply opens the door for discussions.

City leaders have long said Port Aransas needs a full-service hotel and convention space to attract visitors during slower travel seasons. Previous efforts, including a 2019 partnership attempt, ultimately fell apart after funding and tax incentive challenges.

A key issue in past proposals has been securing state approval for tax rebates tied to the project. That hurdle could still affect this new effort.

For now, the city is back at the negotiation stage, weighing whether a revised public-private partnership could finally bring the long-discussed project to life.

https://www.portasouthjetty.com/articles/city-and-palmilla-talking-possible-conference-center/

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