SAN ANTONIO – The renovation of a historic hotel took another step towards reality.
Chicago-based hospitality developer Trestle Studio, the lead investor renovating the El Tropicano Hotel, recently attained a $79 million construction loan to push the property’s revitalization forward. The firm received the variable interest rate loan on December 26th, Bexar County records show, from Fortress Credit Co. LLC, an entity connected to Fortress Investment Group.
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Trestle Studio, Denver-based Sopris Capital and Austin investor The Town Lake Co. closed on the property in December 2023, pushing a redevelopment plan helmed by Studio8 Architects through the Historic and Design Review Commission.
Along with an interior overhaul, the team has outlined plans for a staircase connecting the hotel to the River Walk, building a deck overlooking the river and river-level landscape modifications. In a 2024 interview with the Business Journal, Trestle Studio Managing Director Ryan Bean said the hotel will act as a connection point between downtown, River North and Tobin Hill.
“Our hope is that we can create or bridge the activity of the River Walk that you find downtown with the Pearl since we’re in the midway there and can compete with four-star, full-service offerings,” he said.
The 2024 transaction ended a legal tussle that stretched most of 2023 after it fell into foreclosure under the previous ownership. Local private equity firm Alamo Equity was sued by one of its investors, who claimed the fund manager was using dollars earmarked for the renovation to shield themselves from personal financial exposure. After a default was initiated through mezzanine lender Weston Urban, a months-long negotiation process kept it off the auction block.
An updated renovation timeline has not been disclosed, though the firm has said it’s aiming to reopen the hotel in 2026. Trestle Studio did not respond to a request for comment by publication time.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.