Shangri La Caribe, a resort with thatched-roof bungalows in Playa del Carmen, Mexico, has changed its name to Mahekal Beach Resort.

Mahekal was chosen because it is the Spanish pronunciation for the word "magical."

Formerly a family-owned and -operated resort, Shangri La Caribe was purchased in December 2008 by a group of U.S. investors led by Circa Capital Corp.

In addition to changing the name of the resort, Circa Capital said it has spent the last year making service improvements and giving the resort a facelift. There is new paint, stain, tile and walkways throughout the resort. All guestrooms have new bedspreads, accent throws, pillows, vanity mirrors and rain showerheads, Circa Capital said.

Service enhancements include a flexible meal plan with an option to choose dinner or lunch so guests can dine in town when they want. The three-restaurant resort has added an extended menu with themed buffets, such as Mayan and Italian.

All guest rooms are now nonsmoking. Smoking is permitted in open-air areas such as terraces and in a designated area of the Casa Club bar.