Bankrupt San Antonio Hotel Conversion Heads to Auction Block

The future of a bankrupt office-to-hotel redevelopment in San Antonio will either be sold to Ashford Hospitality or GrayStreet Partners.

Filings in the U.S. Southern District of Texas Bankruptcy Court show that 145 Navarro Street is set to be sold to Ashford for $32 million. If Ashford can’t complete the transaction, GrayStreet will take the building for $30 million, according to the San Antonio Business Journal. A Houston-based bankruptcy Judge Christopher Lopez hasn’t approved the backup bid, the outlet states.

Blueprint Hospitality, the former office building’s owners, acquired it from San Antonio’s public utility CPS Energy with plans to turn it into a luxury Marriott International hotel. Court filings reveal that Blueprint CEO Kunal Mody said flood damage led to unsustainable delays and costs for the redevelopment. Blueprint filed for Chapter 11 bankruptcy for the building’s spun off holding company in early 2025, according to the outlet. GrayStreet affiliate ERC Acquisitions IV LLC was one of the lenders for the project.

The project will have a new owner by July 15, the outlet states.

In 2023, hopes for the project were high. 145 Navorro Street was slated to become a part of Marriott’s Autograph brand, taking up the moniker El Portal. The price tag for the conversion was set at $55 million.

The project fell apart after Houston-based Blueprint defaulted on two loans from TransPecos and BV Capital. After the loans were transferred to an entity under Riverwalk Reposition Partners LLC in 2024, Blueprint was sued and issued a default acceleration notice. Water damage was seeping through multiple floors in the building, and mold was spreading upwards from the basement, according to the lawsuit. A malfunctioning water fountain higher up in the building created a water damage sandwich. Blueprint denied the allegations in a September court filing. In 2025, Blueprint faced a $3.1 million mechanic’s lien from Premier Project Management for unpaid services.

— Hunter Cooke