New $13M hotel breaks ground in Harlingen amid rising demand for long-term stays

After scouting around for a suitable location along the U.S.-Mexico border for a new hotel, a Dallas-based developer chose Harlingen. 

But it’s not the first time King Scovell, managing partner and chief development officer of Woodbine Development Corporation, has visited the Rio Grande Valley. 

He grew up visiting South Padre Island, which meant he often drove past the Cameron County city. He even married a woman from the Valley, and they have four children. 

“We did, really, a nationwide feasibility study on which markets are best for us for economy extended stay,” Scovell said. “Really, what was highlighted was towns across South Texas along the border, of which we had a few identified. Ultimately, we landed on Harlingen.” 

The region has long supported tourism from Mexican nationals and Winter Texans, as well as housing for government workers and traveling healthcare professionals. Now, there are thousands of subcontractors working on long-term projects, ranging from SpaceX to LNG, he said. 

“I think we counted 30-plus cranes at the LNG project,” he said. “I don’t think [the hotel market] is saturated, but the secret’s out about the Valley.” 

Regional demand drives investment

The $13 million Extended Stay America Hotel, owned by the affiliated company HRL-ESA Hotel Owner, LLC, will feature 124 rooms and span 54,000 square feet. It is expected to open in fall 2026. 

Pharr-based Alamo System Industries is the general contractor, and Plains Capital Bank is financing the project. 

Economic development officials, as well as ecotourism festival organizers like Janine Campbell, who volunteers with the World Birding Festival in Harlingen, attended Thursday’s ground-breaking ceremony.

Campbell welcomed news of another hotel being built near the city’s convention center.

She said participant feedback from this year’s birding festival indicated some enthusiasts were unable to attend because hotels in Harlingen were already sold out.

She hopes to secure a block of rooms at the new hotel for next year’s visitors.

Beyond that, Campbell said she’d like more developers to consider native plants in their landscaping to support habitats for both local and migratory birds and butterflies. 

“We have a new conservation fund, so we like to talk to new businesses coming in about their scheduled landscaping so we can partner with some of our people that have the native plant project who can tell them which plants will be attractive to their longer-stay guests, just to have a better experience because now they’ll have birds and butterflies,” she said.