Thompson Hotel San Antonio Sale: Loren Group Buys for $41 Million

Thompson Hotel San Antonio Sale has closed, and the downtown hotel has a new owner. New York based Loren Group bought the property for $41 million from Sunrise Realty Trust. The deal closed this week. Learn more on the official Hyatt website.

The deal is a big move in the San Antonio luxury hotel market. Loren Group is a luxury hospitality and residential development company. It owns luxury hotels in Austin and Bermuda. A third hotel is on the way in Turks and Caicos.

How the Thompson Hotel San Antonio Sale Was Funded

Loren Group put in $9 million in cash. It also received a $32 million senior loan from Sunrise Realty Trust and its affiliate. The company plans to invest another $10 million in property improvements.

Sunrise Realty and Southern Realty Trust are Florida based commercial real estate lenders. They are in the process of merging. They paid $40.5 million for the hotel at the Bexar County foreclosure auction in March.

Sunrise Realty owned 65% of the joint venture. It earned $26.7 million of the gross sale price. Of that, $5.9 million is in cash and $20.8 million is interest in the new loan.

Why the Thompson Hotel Went to Foreclosure

The trusts provided $44 million to DC Partners to refinance the hotel in 2024. The Houston based developer then fell behind on its payments. DC Partners said the hotel's business was hit hard by the pandemic. It also pointed to competition from new downtown hotels and higher interest rates that raised borrowing costs.

About the Thompson Hotel and Arts Residences

The hotel has 162 rooms and 33 suites. It shares a building with 59 condos known as the Arts Residences. The condos were not part of the foreclosure sale.

DC Partners built the $130 million building in 2021. It financed the project in part with international investment through the federal EB-5 visa program. The firm also received about $10 million in financial perks for the condos through a city housing program. It was the largest package in the program's history.

For more hotel industry updates, read the latest hotel news from HCP.