The Embassy Suites in northwest San Antonio is up for a foreclosure auction.
The hotel at 7750 Briaridge Drive, just north of Loop 410 and Interstate 10, is scheduled to go to auction next month after owner California-based Hotel Capital defaulted on a loan, the San Antonio Business Journal said. Report.
The CEO of Hotel Capital is Michael Collier, who purchased the hotel, formally known as the Embassy Suites by Hilton San Antonio NW I-10, in 2015. The company secured a $43.5 million mortgage from middle-market lender NXT Capital to help finance the acquisition. In 2018, Hotel Capital transferred the mortgage to asset manager Sound Point Capital’s Global Investment Fund I.
Bexar County records show that the loan was due to mature in 2018, but the company was granted three extensions on its due date between 2019 and 2021. The most recent loan maturity date is May 31, 2022.
The property was most recently appraised at about $22.7 million, according to the Bexar County Appraisal District. The auction is scheduled for June 6.
Other hotel sales in San Antonio can serve as a benchmark for how much people are willing to bid. In December, Nexgen Management bought the 95-room Residence Inn and 110-room Fairfield Inn & Suites on the 600 block of South Santa Rosa Boulevard for about $32 million.
The eight-story, 102,000-square-foot La Quinta Inn & Suites at 4431 Horizon Hill Boulevard hit the market last summer for $21 million.
Meanwhile, some developers, such as Blueprint, are acquiring old office buildings in the Alamo with plans to turn them into hotels.
— Quinn Donoghue
