Raymundo Domínguez doesn’t sell yoga mats or meditation zafus, but Olita, the resort he founded and manages in Puerto Escondido, is full of them.
There, jute mats, circular mirrors with natural fiber frames, handcrafted pillows, eye masks, and books coexist, so that guests can sleep in a luxurious place where they can recover their mental health, reconnecting mind and body.
Olita’s design isn’t based on an aesthetic preference, but rather on a data-driven decision. Based on market research, Domínguez identified a boom in interest in wellness and wellness experiences.
He also observed that Puerto Escondido offered more affordable land costs than established destinations like Cancún or Los Cabos and that the possibility of growth in the area remained open.
His reading was correct. In Oaxaca, annual hotel occupancy hovers around 41%, although during seasons like Easter and New Year’s Eve it exceeds 76%, according to the state Tourism Secretariat.
In terms of air travel, the local airport closed 2024 with more than 3,100 flights and nearly 519,000 seats available, with an average occupancy rate of nearly 79%. This combination of valleys and peaks opened up opportunities for flexible models that attract long-stay travelers and travelers seeking different experiences.
Olita combines a residential format with the services of a boutique hotel. “Guests arrive looking to de-stress, not just stay. People first request yoga, then massages, then a private chef, and finally tours and surf lessons. That order is natural. You arrive tired, reconnect, and then go out to explore,” explains Domínguez.
The resort works with local instructors, therapists, and chefs. The providers charge directly for their services, without intermediaries. “We want the impact to be local. If the guide or therapist leaves happy, the guest comes back and recommends us. That’s where the real deal is,” he asserts.
This approach has shaped the profile of visitors. According to Domínguez, 60% of guests are women traveling alone or with friends, and the rest are families and professionals who combine relaxation with remote work. “Most come to work, and even when they’re on vacation, they turn on their computers and get on with things,” he comments.
The peaceful surroundings and spacious apartments have made the place an option for those seeking concentration and another form of inspiration. “The place lends itself to that. We put power outlets everywhere, on the terrace, in the master bedroom, and even in the pool. Today, a project without connectivity and power is dead,” affirms the CEO.
Most of Olita’s guests go there to work. (Courtesy)
The design was led by architect Daniel Amkie, of the DAW firm in Mexico City. The building rises like a monolith that extends the cliff, and its façade suggests the movement of a wave, reflecting not only the characteristic waves of the area but also Olita, the name and logo of the complex, which was an in-house project.
“When you use a diminutive, it conveys freshness and closeness. The logo follows that line with a moving wave, in tune with the architecture that integrates the building into the landscape,” says Domínguez.
In its first year of operation, Olita exceeded 60% occupancy, even during the low season, while boutique hotels in the area achieve occupancy rates between 25% and 30%, according to internal company data.
This stability is supported by an efficient cost model. By directly participating in the construction and management, the team managed to reduce the cost per square meter by between 25% and 35%. With this structure, the return on investment is estimated to be five to seven years, compared to double the typical market rate.
The expansion plan includes two new projects in Puerto Escondido and a future outing to Cozumel, with residences of more than 3,500 square feet. “We already have the learning curve, the suppliers, and the team. It would be a mistake to let it go,” says Domínguez.
Olita also works closely with sister brands that share the vision of purposeful experiences. Palmers, Mezcal Comuna, and Paccari are supporting various initiatives that expand the project’s reach and strengthen its commitment to wellness as a business strategy.
In a destination preparing to open international routes from Dallas, Olita aims to consolidate itself as a competitive option within the wellness and hospitality segment. “If we get people to come not just to sleep but to transform, we already win,” notes the CEO.
Source: expansion
