All eyes turned to the northern end of downtown when a shocking foreclosure of a swanky, relatively new San Antonio hotel made headlines. A defaulted loan left the property up for grabs on the front lawn of the Bexar County Courthouse, but with no takers, the investor bought the building back. The investor said it was seeking a quick sale of the hotel, but county land records show it’s still in the investors’ hands four months later, as of July 1.
“Like many hospitality assets across the country, Thompson San Antonio’s performance has been significantly impacted by a combination of prolonged stabilization timelines, a high influx of hotel properties downtown, and most significantly today’s elevated interest rate environment,” a spokesperson with the Thompson Hotel’s developer told MySA at the time of the foreclosure.
While one hotel was facing financial turbulence, the El Tropicano just across the street was nearing the end of a yearslong metamorphosis – a multimillion-dollar renovation that’s about to wrap up. The newly anointed Sítio El Tropicano, reimagined and designed by Michael Hsu Office Architecture, began accepting reservations in late June ahead of its “late 2026” opening.
The mid-century marvel of a hotel is getting a serious facelift, with officials sharing early looks at luxurious wood-paneled stairs, lush indoor greenery and stone-lined surfaces. But another exciting announcement could reshape how people interact with this often-overlooked portion of the city’s core.
Emmer & Rye Hospitality Group, the minds behind Pullman Market and Ladino in San Antonio, are leading three new concepts at the reenvisioned hotel. With a rooftop destination, The Moon’s Daughters, just across the street, this could very well spark a dining district in this sliver of downtown that lacks the metropolitan draw.
“Texas native Emmer & Rye Hospitality Group brings extraordinary ingenuity and integrity to everything it touches, and Sítio Club will welcome those who nurture the city’s creative spirit: a place where culture, discovery, and genuine connection can take root,” Sítio El Tropicano officials said. “We are thrilled to open reservations and invite the tastemakers of San Antonio into El Tropicano’s new era.”
Lastly, there’s an opportunity for some financial or business buzz just around the corner after AT&T announced it was leaving its downtown headquarters at the corner of North St. Mary’s Street and McCullough Avenue. The property just went up for lease as the surrounding hotels are in the middle of a transformation.
With so much change and transition looming over a tiny section of downtown, there’s an opportunity for a renaissance that could create a destination-worthy district around the Tobin Center for the Performing Arts.