The Line Austin is facing foreclosure after allegedly defaulting on a $172 million loan. (Google Maps Street View)
One of Austin’s most recognizable boutique hotels is headed towards foreclosure after allegedly defaulting on a multi-million-dollar loan.
The Line Austin, a luxury hotel overlooking Lady Bird Lake near South Congress Avenue, has been flagged for a June foreclosure auction after the ownership entity defaulted on a $172-million loan tied to the property, according to The Real Deal. JP Morgan issued the mortgage for the 428-room hotel in 2023.
The Line Austin is facing foreclosure after allegedly defaulting on a $172 million loan. (Google Maps Street View)
The hotel, located at 111 East Cesar Chavez Street in Austin, opened in 2018 in a redeveloped building that once housed the Crest Inn and quickly became one of the city’s higher-profile hospitality destinations downtown. A mid-century property built in the 1960s, it also operated under different brands, including a time as a Radisson, and for a stretch, its lobby-level restaurant was famously a TGI Fridays.
In October, The Line Austin was named among the top Texas hotels of the year by Condé Nast Traveler, according to the Austin-American Statesman. The Line Austin’s website describes the property as a “standout stay” in the city, featuring award-winning dining, an infinity pool, wellness spaces, complimentary bike borrow and other amenities.
The Line Austin is facing foreclosure after allegedly defaulting on a $172 million loan. (Google Maps Street View)
The possible foreclosure follows mountain troubles for other properties connected to the Line hotel brand. Lenders have already taken control of Line-branded hotels in Washington D.C. and Los Angeles, signaling broader financial stress across the portfolio.
Soho House & Co., the parent company behind The Line Hotels brand, and The Line Austin did not immediately respond to Chron’s request for comment by the time of publication.
If the foreclosure moves forward, the property could hit the auction block this June unless ownership reaches a last-minute agreement with lenders.
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This article originally published at Iconic Austin lakeside hotel faces shock foreclosure over $172M default.