The Line, Hyatt Centric go Back to Lenders at Auction

A foreclosure auction Tuesday saw two Downtown Austin hotels on the block return to their lenders.

The Line Austin at 111 East Cesar Chavez Street and the Hyatt Centric at 721 Congress Avenue were returned to JP Morgan and an entity affiliated with Atlanta-based Peachtree Group, respectively. A combined $222.5 million was bid on the hotels by substitute trustee Angela Zavala.

The Line returns to JP Morgan after the previous ownership defaulted on a $172 million loan issued in late 2023. JP Morgan was unopposed in the auction, according to the Austin Business Journal, and bid the exact number owed on the loan: $172 million. The Line encompasses 169,586 square feet of space, and was appraised for tax purposes by the Travis Central Appraisal District at $168.9 million.

Hyatt Centric owner and developer Realberry defaulted on a 2024 $84.6 million loan. Technically, the entity that acquired the building was PSOF LWC ASP Issuer V LLC, but in an emailed statement to the publication, Peachtree claimed responsibility for the winning $50.5 million bid.

The Line Austin’s fate is particularly notable for the 428-key hotel. The Line Austin opened in 2018, and was recently named one of the top hotels in the state by Condé Nast Traveler.

Many hotels with The Line branding have been plagued with foreclosures after parent company Soho house went public in 2021, and then quickly went back to private. The brand’s parent company Soho House went public in 2021 and failed to post a year of consistent profit, prompting a deal led by Ron Burkle to take Soho House back to private ownership.

The Line DC was sold at a foreclosure auction in early 2025, and Corten Real Estate Partners took back the keys to The Line LA after the owner defaulted on a $100 million loan.

— Hunter Cooke