Foreclosed Downtown San Antonio Hotel Commands $41M
The new owner is slated to execute a $10 million capital improvement plan.
A joint venture between Tennenbaum Capital Group Real Estate’s Sunrise Realty Trust and Southern Realty Trust has divested the 162-key luxury Thompson San Antonio hotel for $41 million.
The Loren Group acquired the asset in a transaction including $9 million in cash and $32 million in debt issued by SUNS and SRT, the sellers. The new ownership earmarked $10 million in capex to enhance the hotel.
Notably, the same joint venture refinanced the property with a $42 million loan in 2024. However, then-owner DC Partners defaulted on the debt in February, citing strong downtown competition, high interest rates and fewer bookings than anticipated, according to San Antonio Express-News. Following a March auction where no other competitors emerged, SUNS and SRT took ownership with a $40.5 million bid.
Thompson San Antonio features guest rooms ranging from 350 to 2,400 square feet. The hotel debuted in 2020 as part of a mixed-use tower including a 59-unit condominium property, a portion that was not included in The Loren Group’s acquisition. The 20-story high-rise features a rooftop restaurant, spa, gym and 5,000 square feet of conference facilities.
READ ALSO: Largest Commercial Mortgage Lenders
The property operates under Hyatt’s Thompson Hotels brand. Meyer Jabara Hotels, which already operates other Hyatt-branded properties, added Thompson San Antonio to its management portfolio earlier this year.
Located at 115 Lexington Ave., the property is in the downtown area’s Arts District along River Walk, near the Tobin Center for the Performing Arts and The Alamo.
Central Texas’ 2026 hospitality foreclosures
Central Texas’ hospitality market has already seen its fair share of foreclosures this year. In Austin, Texas, Peachtree won Realberry’s Hyatt Centric for $50.5 million in an auction after the developer defaulted on an $84.6 million loan.
Another hotel was up for auction this year. The Line Austin, a 428-key property, went back to its lender JP Morgan, after the financier ran unopposed and won with a $172 million bid identical to the loan the company was owed.
You must be logged in to post a comment.