Sports Illustrated Resorts has withdrawn from plans to develop a resort at the Lago Mar Crystal Lagoon in Texas City, according to information provided to the Houston Business Journal. The project was initially announced in January 2024 and was expected to feature a 200-room, six-story resort on the southeast side of the 12-acre lagoon. Planned amenities included a restaurant, beach club, cabanas, and a swim-up island bar.
The development was set to be designed by Project Luong of Houston and managed by American Resort Management based in Grand Prairie, with Travel + Leisure as a partner. Groundbreaking had been anticipated for the third quarter of last year but did not take place.
A source familiar with the matter indicated that Sports Hospitality Ventures, which licenses the Sports Illustrated brand from Authentic Brands Group, ceased communication with Land Tejas—the developer behind the Lago Mar community—sometime last year. This is consistent with city records: Kim Golden, Texas City engineer, stated this spring that no applications for a resort at that site had been received by city offices. Zoning regulations permit either hotel or townhome developments on the property.
Sports Illustrated Resorts was intended to be part of a larger $100 million entertainment district surrounding the lagoon. The area already features Lagoonfest Texas—a public beach attraction—and resident-only spaces. There were also plans for additional retail, dining options, and condominiums along a proposed boardwalk. In 2024, Wan Bridge completed Crystal View at Lago Mar—a 151-unit townhome project—but no progress occurred on the resort component.
Texas City is not alone in experiencing changes or cancellations related to Sports Illustrated Resorts projects. In Tuscaloosa, Alabama, an announced resort lost its hotel component; in Mississippi, plans are delayed pending lower interest rates; and an Ann Arbor proposal was abandoned after opposition from officials and residents. A previously promoted Orlando location has also disappeared from the brand’s website.
Currently, only one Sports Illustrated Resort is operational—in the Dominican Republic since 2022—while locations in Chicago and Nashville are listed as “coming soon.” The Chicago site will occupy Richard Branson’s former Virgin Hotel Chicago property.
Meanwhile, The Lagoon Development Company continues expanding its signature turquoise pools throughout Greater Houston using Crystal Lagoons’ water treatment technology. Projects are underway or opening soon in Dayton, Magnolia, and Katy—with several linked to entertainment districts across these areas.
