A boutique hotel with tax credits in hand is up for grabs on the San Antonio River Walk.
The 129-room Riverwalk Plaza Hotel is up for sale at $20.75 million, the San Antonio Business Journal reported. The price is about $160,850 per key.
The seller, Warwick Prestige Hotels, is tied to Austin-based investor Ifran Valla, public records show. Valla’s firm Luxe Life owns or manages short-term rentals and boutique hotels, including 35 units at the Austin Condo Hotel, according to its website.
Riverwalk Plaza, at 100 Villita Street, is being marketed by Marcus & Millichap’s Allan Miller.
The seller acquired the property in 2015 and refinanced with Texas Capital Bank in 2017, increasing the loan amount to $8.3 million in 2019 ($64,300 per key).
Valla has secured historic tax credits for the property, incentives could help offset renovation costs for a buyer aiming to reposition the property. He won approval for federal historic tax credits from the National Park Service in October, as well as an estimated $2.5 million through the Texas Historic Preservation Tax Credit program, the outlet said.
Metro San Antonio’s hotel sector is in recovery mode. The city’s fourth-quarter occupancy rate averaged 59 percent, with a full-year average of 61.7 percent, according to Source Strategies.
Overall deal flow is slow in the market, but the hotel could draw interest from value-add investors looking for a historically protected, moderately priced downtown asset. The River Walk location and tax credits may offer a relatively low-entry option for buyers betting on long-term tourism and hospitality demand in San Antonio’s core.
Development activity in the surrounding area is picking up. McCombs Enterprises and developer Ed Cross recently began renovating the nearby Tower Life building into a mixed-income apartment tower, while Escalera Capital is planning a food and beverage hub at the Villita Assembly Building just east of the hotel.
— Judah Duke
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