The Monarch hotel Friday, March 6, 2026, in San Antonio. The 17-story luxury hotel opened earlier this month is part of the Curio Collection by Hilton.
Andrew J. Whitaker/San Antonio Express-News
The Monarch San Antonio, the long-sought hotel anchor at Hemisfair, just got its finishing touches, and the historic El Tropicano Riverwalk Hotel is set to reopen this fall as Sítio El Tropicano after a significant reinvestment.
Despite such grand unveilings, it’s not a great time to be opening a hotel in downtown San Antonio — particularly an upscale establishment.
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The Plaza San Antonio Hotel and Spa’s outdoor courtyard features ample seating and the Anaqua Garden Bar. The boutique hotel is located at the corner of South Alamo Street and East Cesar Chavez Boulevard in downtown San Antonio.
Sam Owens/San Antonio Express-News
The bar of Cavalier in the InterContinental San Antonio Riverwalk hotel as seen on Monday, March 31, 2025.
Josie Norris/San Antonio Express-News
A fourth floor room at The Monarch hotel Friday, March 6, 2026, in San Antonio. The 17-story luxury hotel opened earlier this month is part of the Curio Collection by Hilton.
Andrew J. Whitaker/San Antonio Express-News
People dine at Aleteo rooftop restaurant at The Monarch hotel Friday, March 6, 2026, in San Antonio. The 17-story luxury hotel opened earlier this month is part of the Curio Collection by Hilton.
Andrew J. Whitaker/San Antonio Express-News
The Kimpton Santo Hotel, a 10-story luxury hotel located across the street from Hemisfair’s Yanaguana Garden in downtown San Antonio, is pictured on Tuesday, July 1, 2025.
Sam Owens/San Antonio Express-News
The Tenfold rooftop bar at Kimpton Santo is hosting a party on New Year’s Ev.
Kimpton Santo
Dean’s Steak and Seafood at Kimpton Santo
Kimpton Santo
The Plaza San Antonio Hotel and Spa recently reopened at the site of the former Marriott Plaza Hotel in downtown San Antonio, Texas. The boutique hotel is located at the corner of South Alamo Street and East Cesar Chavez Boulevard, which features 253 guest rooms, a restaurant named Corinne San Antonio and an outdoor bar named Anaqua Garden Bar.
Sam Owens/San Antonio Express-News
The InterContinental San Antonio Riverwalk hotel has a pool deck with cabanas.
InterContinental Hotels Group
The InterContinental San Antonio Riverwalk hotel has 390 rooms.
InterContinental Hotels Group
One of the four food and beverage concepts at the InterContinental San Antonio Riverwalk hotel is Deco Bar, a lobby bar.
InterContinental Hotels Group
A rendering shows renovations planned at the El Tropicano Riverwalk Hotel.
Courtesy of El Tropicano Hotel LLC
A rendering shows renovations planned at the El Tropicano Riverwalk Hotel.
Courtesy of El Tropicano Hotel LLC
A rendering shows the upcoming lobby transformation for Sítio El Tropicano, which Trestle Studio plans to reopen in the fall.
Trestle Studio
But they’ve been coming fast.
The new wave of hotel supply is coming despite a drop in visitor demand since 2019 due to the post-pandemic slowdown in convention business — the city’s traditional tourism backbone — a slowdown in domestic leisure travel blamed on high inflation and the weak economy and a decline in international visitors attributed to the Trump administration’s immigration policies and rhetoric.
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RELATED: Lender takes over luxury Thompson hotel downtown at foreclosure auction
The situation already is putting pressure on downtown properties, as evidenced by last month’s foreclosure sale of the Thompson San Antonio-Riverwalk, a 20-story luxury hotel that opened in 2021.
It adds up to what Source Strategies, a local hotel consulting firm, says is one of the most turbulent stretches the San Antonio market has faced since the pandemic.
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Its data tells the story.
As the number of rooms in the urban core increased 4.2% since 2019, the number of nights sold plummeted 15.6%. That’s pushed revenue per available room — a key measure of hotel performance — to an increase of an anemic 2.3% since the pandemic.
“It has not come anywhere close to keeping up with the rate of inflation,” said Paul Vaughn, director of data operations at Source Strategies.
The declines appear to be accelerating.
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A rendering shows renovations planned at the El Tropicano Riverwalk Hotel.
Courtesy of El Tropicano Hotel LLC
In the final three months of 2025, occupancy in downtown hotels slid to just 59%, more than 9 percentage points below the same period in prepandemic 2019. Revenue per available room fell nearly 9% from a year earlier.
That helped drive a citywide revenue drop of 7%, the steepest decline among Texas’ major metros and far off the statewide average decline of 2%.
“We expect this demand to slowly rebound, but it will take time to see occupancies rise to the pre-pandemic level as this supply is absorbed into the marketplace,” Vaughn said, adding that the activity suggests investors see a turnaround ahead. “Developers and franchises are risk-averse and would not invest in San Antonio if they did not expect to profit.”
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International travel
Downtown’s glut of luxury hotels — which tend to attract more international than leisure travelers — is growing as foreign visitation has been steadily declining.
International travel to the U.S. declined 4.8% in January compared with last year, Forbes reported, the ninth month in a row with a decline in foreign visitors.
READ MORE: Are San Antonio’s luxury hotels among the cheapest? Here’s what Hotels.com says.
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Many visitors are apprehensive about traveling to the U.S. due to President Donald Trump’s strict border policies, travel experts say, including a 39-country travel ban and visa bonds of up to $15,000 for visitors from certain countries.
Jorge Urbina, cleans a glass behind the bar at The Monarch hotel Friday, March 6, 2026, in San Antonio. The 17-story luxury hotel opened earlier this month is part of the Curio Collection by Hilton.
Andrew J. Whitaker/San Antonio Express-News
Through the first six months, the U.S. was on track to lose $12.5 billion in international traveler spending, according to a report from the World Travel & Tourism Council.
The decline was largely a result of many Canadians boycotting the U.S. in response to trade disputes and political tensions after Trump’s suggestion to make the country a 51st U.S. state. As a result, Canadian travel to the U.S. declined by 22%, with roughly 4 million fewer trips than in 2024, resulting in a loss of about $4.5 billion in revenue.
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International travel has been a big slice of San Antonio’s tourism pie. In the 2024 fiscal year, San Antonio saw 39.2 million domestic and international visitors, according to Visit San Antonio.
As international travel declines, hoteliers are hoping for more business driven by conferences in the city — and that the upcoming expansion of the Henry B. González Convention Center in San Antonio will boost visitation. The downtown complex’s major expansion is a $750 million project to add 192,000 square feet of event space as part of the first phase of the $1.3 billion Project Marvel initiative to create a massive sports and entertainment district downtown.
RELATED: Will investing millions more in San Antonio’s Convention Center pay off?
The Convention Center has been steadily rebounding since the pause on events during the pandemic. Its total annual revenue totaled $26.9 million in fiscal year 2025, well above the $19.9 million it generated in 2019 before the pandemic, according to the city of San Antonio. It’s also a 12.5% increase from 2024’s $23.9 million, generated from the approximately 375,825 visitors that year, and a 14.5% increase from 2023.
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Spending generated by visitors to the Convention Center averaged $142.2 million from 2010 to 2019 and $130.8 million from 2010 to 2023 at hotels, restaurants, stores and other attractions. In the coming years, city projections suggest, spending could climb 19% with the expansion.
Closures
Hoteliers also are being hit by other economic issues such as rising costs for labor, supply, insurance and energy. Taken with the other challenges, they’re among the reasons several prominent downtown San Antonio hotels have closed as a result.
Last month, the upscale Thompson sold at a foreclosure auction to Southern Realty Trust. Owner DC Partners previously said the property had been pummeled by high interest rates and the neighborhood’s increasing number of hotel rooms for visitors to choose from. The Thompson generally has been the most successful of the luxury hotel offerings.
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READ MORE: Hotel Havana checks out — River Walk fixture closing after 15 years
In October, Hotel Havana closed its doors without explanation after 15 years on the River Walk.
Kimpton Santo hotel’s Tenfold Rooftop bar will become The Tenth Noel holiday pop-up Dec. 19-25.
Mike Sutter/Staff
In January, the San Antonio Housing Trust purchased Sonesta ES Suites, an extended-stay hotel at 425 Bonham St. with plans to refashion the building as 220 one- and two-bedroom apartments.
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El Tropicano, which is reopening in the fall with new owners, remained closed after the pandemic despite the former owner’s plans for a renovation. It was at risk of foreclosure before becoming embroiled in a legal dispute and ultimately changing hands to begin heading toward its reopening this year.
River Walk history
The El Tropicano and Monarch — which also was long delayed by multiple business factors — illustrate both the challenges downtown hotels are facing and the fact developers and operators are still investing in the long-term future.
Trestle Studio, a real estate investment firm; Sopris Capital; and the Town Lake Co. purchased El Tropicano in 2023. The group plans to reopen the historic River Walk hotel after completing extensive renovations.
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El Tropicano Hotel on Monday, Nov. 20, 2023 in San Antonio. The hotel has been closed for several years and was embroiled in a legal dispute earlier this spring. It has since changed hands and is now slated to undergo renovations.
Salgu Wissmath/San Antonio Express-News
“El Tropicano wasn’t just another acquisition opportunity for us; it was the chance to steward a true cultural landmark and reawaken a social anchor,” said Jake Lamstein, founder and CEO of Trestle Studio. “As the first hotel on the San Antonio River Walk, it holds deep meaning in the city’s history. We’re drawn to places with legacy, where architecture and community already intersect.”
The hotel, which originally opened in 1962, will feature 315 guest rooms, three culinary concepts and what will be the city’s largest hotel pool deck. The new owners secured historic tax certification and state and federal tax credits for the project.
“We’re restoring key midcentury architectural elements, maintaining portions of the iconic, tiled façade and distinctive material details, and preserving the original craftsmanship wherever possible,” Lamstein said. “Applying for historic tax certification reflects our commitment to meaningful adaptive reuse.”
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RELATED: First look at plans for facelift at El Tropicano, the landmark San Antonio River Walk hotel
The developers are taking a long-term approach with reinvestment in the historic landmark, he said, hoping to stand out among competitors and attract new customers with “strong culinary and wellness offerings, dynamic community programming” and a private membership offering.
“Downtown San Antonio is experiencing renewed energy and investment,” Lamstein said. “We’re uniquely situated between some of the city’s most engaging pockets of culture and development, like King William and Southtown to the south and Pearl District to the north. Reopening in 2026 allows us to further develop San Antonio’s web of creative enclaves, aligning with the current momentum to ensure the hotel returns not as nostalgia, but as a contemporary icon rooted in the city’s evolving story.”
The Monarch
The Monarch, on the other hand, just opened with 17 stories, 200 rooms, three new restaurants, a full-service spa, 15,000 square feet of event space and a $2 million public art installation. Nightly rates start at $509 and fluctuate seasonally.
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The view from the 17th floor terrace at The Monarch hotel Friday, March 6, 2026, in San Antonio. The 17-story luxury hotel opened earlier this month is part of the Curio Collection by Hilton.
Andrew J. Whitaker/San Antonio Express-News
The $185 million hotel, owned by Zachry Hospitality, sits on land the San Antonio company is subleasing from the Hemisfair Park Area Redevelopment Corp. and is part of a larger effort to revitalize the site of the 1968 World’s Fair — a monumental event the Zachry family helped bring to the city and for which it built the Hilton Palacio del Rio across the street.
Rick Slutter, managing director of Zachry Hospitality, said the hotel has been overwhelmed since it opened March 3, with sold-out nights and restaurants at capacity. He believes its position as a boutique hotel helps set it apart from other luxury competitors.
“While there are elements within the city and within North America that have presented challenges within tourism, the luxury market continues to grow,” Slutter said. “When you find a property with exceptional food and beverage, personalized service and memorable team members, it goes a long way to make up for what you can’t control. Guests who are still traveling are looking for experiences and distinctive elements of design.”
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READ MORE: The new Monarch hotel at Hemisfair is almost here. Here’s the opening date.
In the luxury category, the number of rooms completed in downtown San Antonio has increased 3.5% since 2019, including a whopping 7.1% increase since 2024 alone. But the number of nights sold decreased about 17% — and remained flat from 2024 to 2025, according to Source Strategies.
Oak & Amber steakhouse in the lobby of The Monarch hotel Friday, March 6, 2026, in San Antonio. The 17-story luxury hotel opened earlier this month is part of the Curio Collection by Hilton.
Andrew J. Whitaker/San Antonio Express-News
“There’s still a level of inflation that can be difficult to get a handle on, but we’ve built that into the business plans of all our hotels,” Slutter said. “It’s something we’re always watching, making sure we’re on top of our vendors and deliveries.”
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Slutter said he believes city projects, including Oxbow Development Group’s expansion in Southtown, the Alamo and the plaza’s makeover and the first phase of Project Marvel will help drive visitors to the city’s urban core in the long term.
“There’s never been a better time to open a luxury hotel downtown,” he said. “There’s so much energy building within the city between the arenas and the expansions of the Convention Center, the Alamo and the new food and beverage experiences in town. It’s the perfect time for someone to visit San Antonio for the first time or to return and check into a world-class hotel.”