The Line Austin Faces Foreclosure After Default

A third Line hotel location is facing foreclosure after lenders took control of the boutique hospitality brand’s properties in Washington, D.C. and Los Angeles.

The Line Austin was flagged for June’s foreclosure auction, according to Roddy’s Foreclosure Listing Service. The owner allegedly defaulted on the $172 million loan backed by the hotel at 111 East Cesar Chavez Street. JP Morgan provided the mortgage for the 428-key hotel in 2023.

The Line Austin, which was developed by Sydell Group, opened in 2018 in a building overlooking Congress Bridge and Lady Bird Lake that was once home to the Crest Inn. The foreclosure comes just a few months after the hotel was named one of the top hotels in Texas by Condé Nast Traveler.

Loan documents identify the owner as an entity tied to Andrew Zobler’s Sydell Group, but the firm sold its stake in the brand to Soho House & Co., the company behind the private London club and dozens of others worldwide.

Foreclosures at The Line hotels come amid trouble for the brand’s parent company Soho House. The company went public in 2021 and failed to post a year of consistent profit, prompting a take-private deal spearheaded by Burkle. The $2.7 billion deal closed in February.

The upscale hotel brand opened its three locations in the 2010s, but owners have failed to maintain control of them in the wake of the pandemic.

The Line DC was sold at a foreclosure auction in January 2025. Lender Acore Capital, which provided the property’s $86 million loan, took control of the hotel with a $1 million credit bid. Elon Musk reportedly intended to buy the property and turn it into a private club, but he didn’t end up bidding on it at auction.

The Washington, D.C. location was developed in 2017 by a group that included Friedman Capital, Sydell Group, Affinius Capital and Foxhall Partners.

In July, Corten Real Estate Partners took back the keys to The Line LA in a $68 million credit bid after the owner defaulted on a $100 million loan tied to the property. The 384-key Koreatown hotel was developed by Ron Burkle’s Yucaipa Companies and Sydell Group.