Thompson Hotel in San Antonio Faces Foreclosure

Investors plan to auction off the luxury hotel property after owners defaulted on loan payments.

Published on Feb. 20, 2026

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Less than two years after a $44 million purchase, investors are foreclosing on the Thompson Hotel in downtown San Antonio. The hotel's owners, DC Partners, have allegedly defaulted on loan payments, prompting the investors to schedule an auction of the property at the Bexar County Courthouse.

Why it matters

The foreclosure of the high-profile Thompson Hotel highlights the challenges facing the hospitality industry in San Antonio, which has seen a surge of new hotel developments in recent years. It also raises questions about the long-term viability of luxury hotel and condo projects in the city.

The details

According to foreclosure documents, DC Partners, operating under Lex Avenue Hotel LLC, failed to make several months of loan repayments to the investors, which include affiliates of Blackrock-acquired Tannenbaum Capital Group. The investors have issued multiple default notices to the owners since July 2025, but no resolution has been reached, leading them to move forward with the foreclosure and auction.

  • The Thompson Hotel opened its doors in 2021.
  • In 2024, DC Partners successfully paid off a $38 million note to PSOF NP San Antonio LLC, a company linked to Peachtree Group.
  • On February 5, 2026, the foreclosure notice was filed in Bexar County.
  • The property is set to be auctioned off between 1 p.m. and 4 p.m. at the Bexar County Courthouse.

The players

Thompson Hotel

A luxury hotel and housing project in downtown San Antonio that opened in 2021.

DC Partners

The developer that operated the Thompson Hotel under Lex Avenue Hotel LLC and defaulted on loan payments.

Southern Realty Trust Holdings

One of the investment firms foreclosing on the Thompson Hotel property.

Sunrise Realty Trust

Another investment firm foreclosing on the Thompson Hotel property.

PSOF NP San Antonio LLC

A company linked to Peachtree Group, which was involved in lending and development for the Thompson Hotel project.

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What’s next

The Thompson Hotel property is scheduled to be auctioned off between 1 p.m. and 4 p.m. at the Bexar County Courthouse.

The takeaway

The foreclosure of the Thompson Hotel in San Antonio highlights the challenges facing the city's hospitality industry, which has seen a surge of new hotel developments in recent years. It raises questions about the long-term viability of luxury hotel and condo projects in the area, especially as the economy faces headwinds like rising interest rates.