2/19/2026
Class
The uscale hotel opened in 2021, refinanced in 20245 due to covid no doubt. But after missing four debt payments, second time around, the creditor is foreclosing. I would say downtown SA is overbuilt on hotels, yet another is being built at Hemisfair. The Riverwalk is no the Golden Goose it is cracked up to be. Saks, Tricolor, First Brands, Carlie Javice, Thompson, see a pattern here?
________________________
SA EN 2/19/2026
The upscale Thompson San Antonio-Riverwalk hotel downtown is slated to be sold at a foreclosure auction next month, with owner DC Partners saying it has been hit hard by high interest rates and a growing number of hotel rooms for visitors to choose from.
Lex Avenue Hotel LLC, a company linked to Houston-based DC Partners, borrowed $44 million from Southern Realty Trust and an affiliate to refinance the hotel in 2024. The company fell behind on its payments and was given four chances to pay its past-due amount but has not met its obligations, prompting Southern Realty Trust to seek to foreclose on the property at 115 Lexington Ave., according to a notice.
The hotel, a Hyatt-affiliated property with 162 rooms and 33 suites, is slated to be sold at next month's Bexar County foreclosure auction. In a statement, DC Partners did not address whether it is working on repayment.
"Like many hospitality assets across the country, Thompson San Antonio's performance has been significantly impacted by a combination of prolonged stabilization timelines, a high influx of hotel properties downtown, and most significantly today's elevated interest rate environment," the company said. "These factors - including opening during COVID and a broader softness in the San Antonio hotel market - created challenges that were not anticipated and challenging to overcome."
"This is not a reflection of the quality of the asset or the long-term viability of the project, but rather a convergence of market forces affecting many developers across the country," the developer added.
he 20-story hotel makes up part of the property, which also has 59 condominium units known as the Arts Residences that are not part of the foreclosure posting.
DC Partners began construction on the $130 million project in 2018. When the Thompson opened in 2021, it was the first luxury hotel to be built in San Antonio in more than five years and has commanded some of the highest rates in the city.
But it is facing more competition. The Kimpton Santo San Antonio-Riverwalk, the Plaza San Antonio Hotel & Spa and the InterContinental San Antonio Riverwalk hotels have opened downtown in recent years, and the Monarch San Antonio is on track to debut at Hemisfair this spring.
Supply is also outpacing demand, with fewer international and business travelers visiting San Antonio and some leisure visitors spending less because of concerns about the economy.
This article originally published at Luxury hotel in downtown San Antonio is slated for foreclosure.
___________________
These factors — including opening during Covid and a broader softness in the San Antonio hotel market — created challenges that were not anticipated and challenging to overcome,” the firm’s spokesperson told the outlet, adding that the situation reflects market conditions rather than the property’s long-term viability.
The foreclosure comes less than two years after Miami-based 3650 REIT provided a $38 million refinancing in 2022, followed by the $44 million refinancing from Sunrise and Southern in 2024. At the time, Sunrise and Southern CEO Brian Sedrish said the loan highlighted confidence in DC Partners as well as demand for upscale accommodations in Texas.
Now that notion is being tested.
The 162-key hotel was among a new class of high-end hospitality projects aimed at elevating San Antonio’s River Walk offerings. But as new rooms have come online and borrowing costs have climbed, operators have faced margin pressure in a market that historically depends on convention and leisure demand, according to the publication. — E
No comments:
Post a Comment