Downtown luxury hotel The Thompson San Antonio – Riverwalk by Hyatt is under foreclosure-sale notice, Bexar County Records show.
Lenders Sunrise Realty Trust Holdings I LLC and Southern Realty Trust Inc. issued a default notice for the hotel at 115 Lexington Ave., which the pair refinanced with a $44 million loan in December 2024, records show. Only the hotel located on the mixed-use property is included in the notice, not the condominiums at the same address that also operate under the Thompson brand.
The filing, dated Feb. 6, was first reported on by the San Antonio Business Journal.
Officials with DC Partners, the Houston-based real estate firm that developed and owns the The Thompson, were unavailable for immediate comment. However, in a statement to the Business Journal, company representatives said high interest rates and a flurry of downtown hotel openings cut into earnings from the property, which opened in 2021.
“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 statement said. “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.”
Sunrise and Southern offered DC Partners four chances to settle its overdue loan amount, the most recent of those on Dec. 16, according to the default notice.
The Thompson hotel includes 162 hotel rooms along with restaurant Landrace and rooftop bar The Moon’s Daughters. The development’s condo portion is comprised of 59 units.
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