An Embassy Suites on San Antonio’s Northwest Side is headed to foreclosure auction.
The hotel at 7750 Briaridge Drive, just north of the Loop 410 and Interstate 10, is scheduled to be auctioned off next month after the owner, California-based Hotel Capital, defaulted on its loan, the San Antonio Business Journal reported.
Hotel Capital, whose CEO is Michael Collier, purchased the hotel, formally known as Embassy Suites by Hilton San Antonio NW I-10, in 2015. The firm took out a $43.5 million mortgage from middle-market lender NXT Capital to help finance the acquisition. In 2018, Hotel Capital transferred the mortgage to asset manager Sound Point Capital’s Global Investment Fund I.
The loan was originally set to mature in 2018, but the firm got three extensions on the maturity date between 2019 and 2021, Bexar County records show. The most recent loan maturity date was was May 31, 2022.
The property was recently appraised for about $22.7 million, according to the Bexar County Appraisal District. The auction is scheduled for June 6.
Other hotel sales in San Antonio could serve as a benchmark for how much someone is willing to bid. In December, Nexgen Management bought the 95-room Residence Inn and 110-room Fairfield Inn & Suites in the 600 block of South Santa Rosa Avenue for about $32 million.
The eight-story, 102,000-square-foot La Quinta Inn & Suites at 4431 Horizon Hill Boulevard hit the market at $21 million last summer.
Meanwhile, a few developers, like Blueprint, are scooping up old office buildings in the Alamo City with plans to convert them into hotels.
—Quinn Donoghue
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