IBC Files Plans for $164 Million San Antonio Hotel

A $164 million adaptive reuse project will bring a JW Marriott hotel to San Antonio, as high supply and low occupancy hamper the city’s hospitality market.

Laredo, Texas-based International Bank of Commerce filed plans for a $164 million two-building hotel at 130 East Travis Street, called JW Marriott San Antonio River Walk, according to a project filing submitted to the Texas Department of Licensing and Regulation.

The plans include turning one of two office towers already operating on the site into a 13-story, 301-key hotel. The project also entails an “additional tower,” the filing reads, and while it doesn’t offer more details on the new building’s height or planned use, previous reports describe a hotel amenity building with parking and a rooftop pool planned for vacant land next to the office complex. Construction is expected to start in July and be completed in April 2028. TDLR filings are preliminary and may change.

The site is at the intersection of East Travis and St. Mary’s Street beside the River Walk. IBC also owns a sliver of vacant land across Travis that it bought from a hospitality developer for an undisclosed price in 2024.

The San Antonio hotel market is flagging. Hotels sold about 2.5 million room nights in the last quarter of 2025, a decrease of 220,000, year-over-year, that dragged the city’s hotel revenue down 7 percent to about $342 million — the greatest decline in the Texas Triangle.

San Antonio hotel occupancy rates slid again in the first quarter of this year, continuing a trend that began after 2022, according to Marcus & Millichap. The average hotel occupancy rate in San Antonio surpassed 60 percent in 2022 after tourism rebounded from pandemic lockdowns, but it’s been in decline since then, with the first quarter ending at about 58 percent average occupancy, the lowest level since 2020.

The trend is expected to continue as supply increases. New hospitality developments in San Antonio include the Monarch Hotel at Hemisfair, a $185 million project by Zachry Hospitality.

The city’s biggest hotel sales last year were government deals, according to Marcus and Millichap. In August, the State of Texas bought the Crockett and Menger hotels by the Alamo, less than a mile from IBC’s complex.