A luxury hotel located on the San Antonio River Walk is scheduled for a foreclosure auction on March 3. The Thompson San Antonio – Riverwalk, which occupies part of a mixed-use property at 115 Lexington Avenue, is subject to the foreclosure after lenders Sunrise Realty Trust and Southern Realty Trust issued a notice of default, according to Bexar County records.
The foreclosure applies only to the hotel portion of the building; its 59 residential condominiums are not affected. The Thompson Hotels brand operates under Hyatt’s Lifestyle division.
The two real estate investment trusts refinanced the property with a $44 million senior loan in 2024. In a filing dated February 6, the lenders stated that developer DC Partners was given four opportunities throughout 2025 to resolve the default. Sunrise and Southern, both based in West Palm Beach, Florida, declined to comment.
DC Partners, headquartered in Houston and responsible for completing the project in 2021, attributed financial difficulties to several market challenges. A spokesperson for DC Partners 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,” adding that these issues reflect current market conditions rather than any long-term problems with the property itself.
The spokesperson also noted slower than expected stabilization of operations, increased competition from new downtown hotels, and ongoing high interest rates as contributing factors.
This foreclosure follows less than two years after Miami-based 3650 REIT provided $38 million in refinancing in 2022. That was succeeded by another refinancing totaling $44 million from Sunrise and Southern in 2024. At that time, Sunrise and Southern CEO Brian Sedrish said: “the loan highlighted confidence in DC Partners as well as demand for upscale accommodations in Texas.”
The Thompson San Antonio – Riverwalk features 162 rooms and was part of an effort to raise standards among hospitality options along the River Walk. However, recent increases in available rooms and higher borrowing costs have put pressure on operators’ profit margins within a market largely reliant on convention business and leisure travel.
Other notable developments involving hotels along or near San Antonio’s River Walk include sales such as the Grand Hyatt San Antonio River Walk being sold for $109 million and BC securing JW Marriott branding for another downtown conversion project.
