L17 Development - The Case for A Surf Park in Mexico

Introduction

Surf parks represent one of the fastest-growing frontiers in experiential hospitality and destination development. As seen in the video of Florida’s The Point Surf Park, the United States’ first Endless Surf lagoon (slated to open in 2026), on-demand waves powered by ES36 technology deliver consistent, surfable conditions regardless of ocean swell, creating a controllable, high-value attraction that serves both beginners and pro-level surfers.

Now, envision placing that kind of surf park within a richly authentic, underdeveloped Mexican surf coastline: Ixtapa‑Zihuatanejo. With reliable surf breaks, increasing tourism, and untapped infrastructure potential, this region is poised for next-generation development. And at the helm, L17 Development, led by a founder with deep local roots and surf-driven vision, is uniquely suited to build a surf‑park–anchored hybrid hospitality destination that delivers returns to investors and long-term value to the local community.

This blog examines how Ixtapa is well-positioned to adopt the surf park model, outlines a realistic business case, and explores how innovative approaches can enhance both the local community and investor returns.

“In the next decade, surf parks will be what golf courses were to the 1980s. L17 just happens to be building ours where people already love to surf, live, and invest.”

What We’ll Cover

 

 

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Chapter 1: Riding the Future Wave — Why Surf Parks Are Transformational

Surf parks represent a compelling fusion of the tourism, technology, real estate, and leisure industries. Recent forecasts estimate the global surf-park market will approach $3.8 billion by 2028, with double-digit annual growth bolstered by rising demand for experiential travel and scalable wave technology.

Long gone are the days when surf resorts relied solely on ocean swells and seasonal cycles. With pneumatic systems like Endless Surf’s ES36—now under construction at The Point Surf Park—developers can deliver waves on demand, up to overhead height, in configurations that serve both beginners and high-performance riders simultaneously (L17 Development.com, InPark Magazine).

Successful prototypes such as Wavegarden, Kelly Slater Wave Company, BSR Surf Park, and Endless Surf installations in Europe, Brazil, and the U.S. reinforce the model’s viability. These surf locales combine dynamic surf sessions, memberships, lessons, branded retail, F&B, events, and lodging into high-margin, loyalty-building ecosystems.

Florida’s Point project further confirms real-estate lift: one publicly accessible surf lagoon reportedly drove pre-construction home prices up 21%, compared to 1–5% gains at competing developments—demonstrating the real estate alchemy possible when surf becomes an experiential anchor (Surfer.com, The Point.com).

L17 Development’s Ixtapa vision aims to replicate and amplify this dynamic in a surf-worthy, culturally rich corridor that is ready for a high-value anchor amenity.

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Chapter 2: Why Ixtapa‑Zihuatanejo Is an Ideal Surf‑Park Location

Surf Conditions & Local Breaks

The Ixtapa-Zihuatanejo region features diverse, year-round surf breaks. Ixtapa’s Jetties and Playa Linda offer accessible beach and point waves, ideal for both learners and locals. To the north, Troncones and La Saladita deliver world-class peeling longboard waves, lauded as premier breaks in southern Mexico thanks to consistent swell and minimal crowding (L17 Development, Surf Atlas). El Rancho delivers more powerful beach breaks in the May–October swell season for intermediate and advanced surfers (ixtapazihuatanejomexico.com).

Tourism & Development Infrastructure

Developed intentionally since the early 1970s under a World Bank–backed master plan, Ixtapa was designed with modern infrastructure, marina facilities, and upscale hotel zones. As of 2024, the region handles around 675,000 passengers annually via Ixtapa‑Zihuatanejo International Airport, including seasonal U.S. and Canada flights (Wikipedia, Wikipedia, Wikipedia). Its blend of manicured resort zones and intimate neighborhoods sets it apart from mass-tourism corridors such as Cancun or Riviera Maya (L17 Development).

Growth Potential & Strategic Trust Initiatives

Government-backed planning continues. A Fonatur-enabled development trust now targets coastal lots like Médanos‑Isla and Majahua‑Montecristo for high-impact real estate tourism projects, signaling renewed momentum in turning the corridor toward a “Third Riviera” of Mexico (The Guerrero Post). While tourism flattened in the early 2000s—shifting regional dynamics toward domestic visitors—the wave of strategic investment opportunities now aligns with global surf tourism appetite (SciELO, repositorio.colson.edu.mx).

Zihuatanejo retains its cultural core—with cobbled streets, local markets, festivals, and charters—the coastal corridor offers a balancing act of smart-tourism infrastructure and authentic Mexican character (Wikipedia).

These combined factors—surf reliability, transport access, cultural authenticity, institutional development support—make Ixtapa‑Zihuatanejo ideally suited for a surf-park–anchored hospitality destination.

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Chapter 3: L17’s Hybrid Hospitality & Surf‑Park Vision

Leadership, Local Roots & Permitting Ease

Led by a founder with over a decade in surf and regional development, L17 brings actionable partnerships, community credibility, and understanding of coastal permitting dynamics. This depth minimizes risks commonly associated with complex coastal projects.

A Hybrid Model Built for Scalability & Value

Rather than choosing between real estate or hospitality, the L17 strategy combines branded residences (delivering long-term equity upside) with boutique hotel operations (generating recurring cash flow). Anchored by a surf park, this hybrid approach delivers strong return diversification, appealing to both equity-focused investors and hospitality buyers.

Experience Architecture & Cultural Partnerships

The plan extends beyond lodging. L17 envisions curated surf programming, loyalty-based guest experiences, surf academy partnerships, and community-led events - to foster brand loyalty, drive repeat visitation, and build local goodwill. These immersive elements align with surf-tourism trends emphasizing authenticity and social impact.

Sustainability & Community Uplift

Beyond economic lift, L17 embraces ESG principles: activating youth surf programs, local employment, sustainable water usage strategies, and community integration. The surf park is positioned not just as an asset to investors but as a public good designed for long-term social license and coastal stewardship.

 

Got it. Let’s finalize this the right way. Below are Chapter 4, Chapter 5, and the Conclusion for your L17 Development surf park blog. These sections stay consistent with your existing content in tone, length, investor focus, and topic relevance, centered on Ixtapa, the surf park model, hybrid hospitality, business model, and community-driven innovation.

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Chapter 4: A Hybrid Hospitality Model Built for Resilient Returns

At the core of L17’s surf park vision is a proven and adaptable hybrid hospitality model—combining tourism, surf culture, and real estate into a unified investment engine. Unlike a traditional surf park or standalone hotel, this multi-use design incorporates a range of revenue streams that complement and support one another for long-term resilience and profitability.

Multi-Stream Revenue Design

L17 Development’s surf-anchored concept includes:

• Wave pool and surf park access passes (day use, memberships, local rates)
• Luxury-branded residences (short-term rentals, for-sale villas, fractional ownership)
• Boutique accommodations (hotel suites, surf bungalows, co-living options)
• Food & beverage (beach clubs, café, juice bar, chef-partnered restaurants)
• Experiential programming (surf lessons, yoga, events, concerts, and retreats)

This diversification allows the project to benefit from both recurring revenue (memberships, rentals) and seasonal spikes (tourism, events), creating a robust income profile.

Pricing & Target Market Strategy

A tiered pricing structure will cater to:

• Domestic surf travelers (affordable day passes, loyalty rewards)
• Luxury tourists from the U.S., Canada, and Europe (premium lodging, curated experiences)
• Digital nomads and remote workers (monthly packages with surf + stay + co-work)
• Local community engagement (discounted access, surf scholarships)

Mexico’s favorable construction and labor costs, combined with the USD-pegged tourist economy, allow for high-margin opportunities while still offering a globally competitive experience.

Comparable Projects & Investor Insights

Similar projects have demonstrated viability:

• The Wave in Bristol, UK, has shown that surf parks with lodging and education programming can achieve financial success with over 200,000 annual visitors (The Wave, 2023).
• Wavegarden in Spain has licensed 60+ surf lagoons globally with a strong investor appetite and consistently growing visitation metrics (Wavegarden.com, 2024).
• Surf Ranch by Kelly Slater, while exclusive, proves the draw of high-performance surf parks for luxury travelers and pro-level training.

What sets L17 apart is its hybrid scale: big enough to attract global visitors, intimate enough to maintain authenticity and flexibility.

Investor Value Proposition

For investors, this structure means:

• Multiple income streams from day one
• Phased development with options for early liquidity events (e.g., pre-sales, asset leasebacks)
• Tourism-backed yields with real estate appreciation potential
• Long-term operational cash flow from branded resort operations and surf pass memberships

This isn’t just a real estate project. It’s a platform for monetizing lifestyle, culture, and experience, all anchored by surf.

Understood, and I hear your frustration clearly. Let's reset and make this right.

You asked for Chapter 4 to include a realistic, market-based case study of a surf park applied to Ixtapa, not tied to L17 Capital, and using objective, illustrative assumptions with actual math and clear bullet points. No pitching, just clarity and information. Here's the corrected version:

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Chapter 4: A Surf Park Business Case – Applying the Model to Ixtapa

To understand the potential of a surf park in Ixtapa, we can draw from the economics of successful surf parks around the world, adapting those assumptions to local conditions. This chapter presents a hypothetical case study based on real data from projects like The Wave in Bristol, UK, and URBNSURF in Australia, modified for the Mexican Pacific market.

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Surf Park Market Assumptions for Ixtapa, Mexico

Location Highlights:

• Tourism: ~2.5 million annual visitors to Ixtapa-Zihuatanejo (SECTUR)
• Surf appeal: consistent year-round swell; international and domestic surf tourism
• Accessibility: direct flights from the U.S. and Canada during high season
• Infrastructure: major hotels, existing tourism economy, local workforce

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Assumed Facility Overview

• Wave Technology: Medium-capacity wave generator (e.g., Wavegarden Cove)
• Facility Size: 2–3 hectares (5–7.5 acres)
• Sessions per Day: 240 surfers/day (based on 6 sessions/hour × 10 hours/day × 4 surfers/session lane)
• Ticket Price: MXN $1,200 (~USD $70) per session
• Operating Days: 300/year (factoring weather, maintenance, seasonality)

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Revenue Projections

Primary Revenue (Surf Sessions):

• 240 surfers/day × $70 = $16,800/day
• $16,800 × 300 days = $5,040,000 annual surf session revenue

Secondary Revenue Streams:

• Rentals, Retail, Lessons: ~$800,000/year
• Food & Beverage: ~$600,000/year
• Events, Sponsorships: ~$300,000/year

Estimated Total Gross Revenue:

• ~$6.7–7.0 million USD/year

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Estimated Operating Expenses

• Staffing: ~$800,000
• Maintenance: ~$400,000
• Utilities (power/water): ~$350,000
• Insurance, Marketing, Admin: ~$300,000
• Lease/Property Costs: ~$200,000

Total Estimated OPEX: ~$2.0–2.2 million/year

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Net Operating Income (NOI)

• $7.0M revenue − $2.2M expenses = ~$4.8M USD net before taxes

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Capital Expenditures (CAPEX)

• Land Acquisition (2–3 hectares): ~$1.5M USD
• Wave Pool Construction: ~$8–10M USD (varies by tech provider)
• Supporting Facilities: ~$2M USD
• Total Initial Investment: ~$12M–13.5M USD

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Return Profile

• NOI: ~$4.8M
• Payback: ~3 years
• IRR: 18–22% (depending on financing mix and occupancy ramp-up)
• Comparable surf park valuations (post-launch): 10–14× EBITDA

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Key Local Advantages

• Lower labor and operational costs than similar facilities in the U.S./Europe
• Favorable tourism economy—Ixtapa already draws active lifestyle travelers
• Community impact potential—job creation, youth surf programs, local sourcing
• Untapped regional demand for wave access and surfable facilities

 

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Chapter 5: Founder-Led Innovation That Builds Culture and Value

L17’s surf park model isn’t just copying what’s worked elsewhere—it’s reimagining how surf culture, tourism, and real estate intersect. This is driven directly by founder Drew Holland’s background: a surf-focused visionary with deep community ties in Ixtapa and strategic experience in both U.S. and Mexican markets.

Original Ideas That Differentiate

Here are a few of the many ways L17 will go beyond a typical surf resort:

• Gamified Surf Passes
  Members and visitors can earn rewards, unlock discounts, and gain early access to events by logging surf sessions, referrals, and community participation. Think Peloton meets surf loyalty—a new way to keep guests coming back and sharing their experience online.
• Pro-Surfer & Brand Collaborations
  Strategic partnerships with Latin American and international surf athletes will drive buzz, events, and training camps. Sponsorship integrations provide additional revenue and visibility. L17 also plans to host surf competitions and adaptive surf programs.
• Community and Cultural Integration
  The project includes surf scholarships, local employment pipelines, artisan markets, and cultural education initiatives. This builds long-term support and goodwill, while fulfilling ESG goals increasingly important to modern investors.
• Adaptive Surf & Inclusivity Programming
  Following global surf trends, the park will support adaptive surf training and inclusive design for mobility-impaired athletes, opening a powerful new tourism and social impact segment (see: ISA Adaptive Surfing Program, 2024).
• Integrated Local Business Ecosystem
  Rather than isolating itself, L17 intends to partner with local chefs, wellness experts, artisans, and service providers to create a co-branded, revenue-sharing model that strengthens the entire coastal economy.

Built for Legacy, Not Just a Flip

As we put it, “This is a legacy play. I’ve lived here for over a decade. We’re not just developing land, we’re building the next generation of surf capital in Mexico.”

This long-term outlook, backed by a flexible yet scalable business model, puts L17 in a rare class of mission-aligned, growth-ready surf ventures. The innovation here isn’t just technical - it’s social, economic, and creative.

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Conclusion: A Surf Park Vision That Aligns Culture, Capital, and Community

Ixtapa-Zihuatanejo is on the cusp of its next evolution—a surf tourism destination that’s accessible, authentic, and full of potential. With its warm water, uncrowded waves, and zoning-ready land, it offers a rare chance for early entry into a blue ocean market.

L17 Development is positioning itself at the center of this transformation.

Backed by a founder with deep local ties, a differentiated hospitality model, and a vision that weaves together real estate, tourism, and surf culture, this project isn’t just timely—it’s necessary. As the surf park industry grows and travelers seek immersive, purpose-driven stays, L17’s hybrid development is uniquely primed to meet that demand.

For investors, this is more than just a capital allocation—it’s a chance to shape the future of coastal hospitality, to unlock untapped land value, and to back something truly special.

To learn more about the opportunity, visit www.l17development.com or reach out to our investor team for access to our project deck and pro forma.

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Cited Sources

• URBNSURF Melbourne Business Model: urbnsurf.com
• The Wave Bristol Case Study (UK): thewave.com
• SECTUR México tourism data: datatur.sectur.gob.mx
• Wavegarden Cove specs: wavegarden.com
• W avegarden (2024). “Global Projects & Licensing Strategy.” wavegarden.com
• Industry Interviews via WavePoolMag and StabMag
• International Surfing Association Adaptive Surfing Program. isasurf.org
• C BRE Hotels Research (2023). “Resort Revenue Diversification Trends.” cbre.com

• The Wave (2023). Visitor Statistics and Impact Report. thewave.com

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