Second Downtown Austin Hotel Hits Foreclosure Auction

Downtown Austin’s Hyatt Centric hotel at 721 Congress Avenue is heading to a foreclosure auction, the second downtown hotel in that position in recent days.

The hotel will be sold at the Travis County Courthouse Tuesday, according to the Austin Business Journal. Hyatt Centric is owned by MH HCAustin LLC, whose filing address matches Denver-based Realberry, who developed the property, according to the outlet. The owning company defaulted on a nearly $85 million loan issued in November 2024. Realberry confirmed the foreclosure proceedings on the 31-story, 246-key hotel to the publication, noting in a statement that it “was determined to be the most prudent path forward.”

Appraisers have the hotel’s value pegged at $56.2 million. That’s almost $228,500 per room.

The Line faces a similar fate, and will be sold at the same auction Tuesday. The hotel was developed by Sydell Group, and allegedly defaulted on a $172 million loan given out by JP Morgan. The Line sits at 111 East Cesar Chavez Street, and totals 428 keys. Late last year, The Line earned a nod on Conde Nast Traveler’s top hotels in Texas list. The hotel is owned by Soho House & Company, who have faced a swath of foreclosures.

The fundamentals of Austin’s downtown have been rapidly changing in the 21st century, and are set to change again. Builders can now construct larger towers, provided they install affordable housing and jump through a few more hoops for the city council.

What’s more, the Austin Convention Center was razed last year and closed until 2029 for an expansion and total reconstruction, which has resulted in double-digit, year-over-year revenue drops for many downtown hotels, according to the publication.

Recent foreclosure auctions have seen downtown properties exchange hands for far less than they’re appraised at, though. Nate Paul’s downtown IHOP location sold for a smidge over $12.7 million in May after a fierce battle to keep it out of foreclosure. The 0.8 acre site was sold for around half of its appraised value.

— Hunter Cooke