Luxury Thompson Hotel in Downtown San Antonio Faces Foreclosure

Owner cites high interest rates, oversupply of hotel rooms as factors behind the hotel's struggles.

Published on Feb. 19, 2026

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The upscale Thompson San Antonio-Riverwalk hotel in downtown San Antonio is scheduled to be sold at a foreclosure auction next month. The hotel's owner, DC Partners, says the property's performance has been significantly impacted by a combination of prolonged stabilization timelines, a high influx of new hotel properties downtown, and the elevated interest rate environment.

Why it matters

The foreclosure of the Thompson San Antonio-Riverwalk hotel highlights the challenges facing the hospitality industry in the city, with increased competition from new hotel openings and softening demand from international and business travelers. This could signal broader economic headwinds affecting the local tourism and real estate sectors.

The details

The 162-room, 33-suite Thompson San Antonio-Riverwalk hotel was developed by DC Partners at a cost of $130 million and opened in 2021. The company borrowed $44 million to refinance the hotel in 2024 but fell behind on payments, prompting the lender to seek foreclosure. DC Partners cited 'a convergence of market forces' including the COVID-19 pandemic, an oversupply of new hotels downtown, and the current high interest rate environment as factors affecting the hotel's performance.

  • The Thompson San Antonio-Riverwalk hotel is scheduled to be sold at a foreclosure auction next month (March 2026).
  • DC Partners began construction on the $130 million project in 2018.
  • The Thompson hotel opened in 2021, marking the first new luxury hotel built in San Antonio in more than five years.

The players

DC Partners

The Houston-based developer that owns the Thompson San Antonio-Riverwalk hotel, which is now facing foreclosure.

Southern Realty Trust

The lender that provided a $44 million loan to refinance the Thompson hotel in 2024 and is now seeking to foreclose on the property.

Lex Avenue Hotel LLC

The DC Partners-linked company that borrowed the $44 million from Southern Realty Trust to refinance the Thompson hotel.

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What they’re saying

“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.”

— DC Partners (expressnews.com)

What’s next

The Thompson San Antonio-Riverwalk hotel is scheduled to be sold at a foreclosure auction next month (March 2026).

The takeaway

The foreclosure of the Thompson San Antonio-Riverwalk hotel underscores the challenges facing the local hospitality industry, with increased competition from new hotel openings and softening demand from key traveler segments. This could signal broader economic headwinds affecting the city's tourism and real estate sectors.