The Village That Became a Hotel: Santa Maria by Oniria\TBWA

May. 25, 2026

While major global capitals buckle under the weight of mass tourism, a small historic village in Paraguay has pulled off something remarkable: a complete transformation that left every stone in place. Santa María, a hidden Jesuit treasure located 242 kilometres from Asuncion, has reinvented itself as a "Village Hotel" — rewriting the rules of hospitality and the circular economy in the process.

The initial challenge was significant: the destination was rich in cultural and architectural heritage, yet lacked the traditional hotel infrastructure needed to welcome visitors. The solution wasn't to build something new, but to use collaborative creativity to build on what already existed.

At the heart of this project lies the power of strategic creativity to bring an entire community's identity under the narrative and operational logic of a hotel. Through careful storytelling, visitors could recognise familiar hotel touchpoints while connecting with something far more authentic — the rhythm of village life.

The project's defining achievement was designing a hospitality ecosystem capable of weaving Santa María's everyday life into a distinctive, scalable, and commercially compelling tourism experience.

The project's creators said:

"We didn't build a hotel. We turned an entire village into one."

 

The initiative was developed through a strategic partnership between the National Secretariat of Tourism (Senatur), the Municipality of Santa María de Fe, the Government of Misiones, and the agency Oniria\TBWA.

Design Innovation: Human-Scale Infrastructure and Community Sustainability

The project breaks away from the logic of corporate hospitality through an integrated ecosystem built around existing community life:

• Local residents open their homes as hotel rooms.
• The village dining halls serve as the official restaurants.
• The central square becomes the lobby; the nearby stream, the swimming pool.
• The workshops of local weavers and artisans serve as the gift shop; the church becomes a meeting space; and the cultural heritage itself becomes the finest entertainment.

A Circular Economy Model with Real Impact

After two years of training and coordination, the community's existing infrastructure has been transformed into an integrated hospitality platform. More than 55 residents were trained in a hospitality model built around people, with 12 local businesses initially integrated into the hotel system.

What began as a social design solution quickly became a commercial success:

• Full Occupancy: Since its official launch, Santa María Hotel Pueblo has operated at 100% uninterrupted occupancy.
• Waiting List: With the first quarter completely sold out, the active waiting list now exceeds 35 days, extending through the end of April and encompassing high-demand periods such as Easter Week.
• 100% Local Return: By activating a direct value chain, all tourism-generated income is distributed within and remains in the community.

Local and Global Recognition

The project was recently honoured at FITUR, the international tourism fair held in Madrid, Spain, where it was selected as a finalist for the prestigious Excellence Awards — establishing it as both a case study and a replicable development model.

The Congress of the Republic of Paraguay has declared the project of National Interest, in recognition of its outstanding contribution to the local economy, sustainable tourism, and the preservation of Paraguay's cultural and traditional heritage.