Peachtree Group Lends $59M on San Antonio Hotel Recap

A joint venture between Winston Hospitality and Concord Hospitality Enterprises has secured a $59 million bridge loan to recapitalize a dual-branded hotel development in Downtown San Antonio, Commercial Observer has learned.

Peachtree Group originated the three-year, floating-rate loan for the sponsorship’s jointly operated AC Hotel San Antonio Riverwalk and Element San Antonio Riverwalk hotels. The 343-room hotel complex opened in 2022. 

Winston Hospitality and Concord Hospitality acquired the property at 111 Soledad Street for an undisclosed purchase price in December 2019. The building was an office complex before it was transformed into two new hotels. 

Jared Schlosser, Peachtree Group’s senior vice president, said he was attracted to the Downtown San Antonio market from a lending perspective because of other large-scale developments taking place in the neighborhood, including a Residence Inn by Marriott that Peachtree is building from its development platform. He noted that the AC Hotel and Element are the first new Marriott-branded hotels in San Antonio’s Riverwalk Historic District since 2011.

“We had intimate knowledge from the equity side of this location in this market, and that allowed us to be able to move quickly on this deal,” Schlosser said. “We’re very bullish on San Antonio.”

Schlosser added that the San Antonio hospitality market stands to benefit from the Austin Convention Center 80 miles away going offline until 2029 as part of a $1.6 billion redevelopment project, which will mean more business for the city’s Henry B. Gonzalez Convention Center.  

Officials for Winston Hospitality and Concord Hospitality Enterprises did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com