Monty Bennett’s Ashford Hospitality Trust has received court approval to take over a hotel conversion project in downtown San Antonio. The move comes as Bennett’s real estate investment trusts face financial challenges, including loan defaults and declining stock value.
A federal judge approved the Dallas-based firm’s $32 million cash purchase of the former CPS headquarters at 145 Navarro Street, according to the San Antonio Business Journal. Blueprint Hospitality, based in Houston, acquired the building from CPS Energy in 2022 with plans to convert it into a 243-room Marriott Autograph Collection hotel called El Portal. However, Blueprint filed for Chapter 11 bankruptcy protection in February after accumulating liens and defaulting on a loan.
Contractors and suppliers had placed about $8 million in liens on the property. Austin-based WM Capital Partners, which issued a $14.4 million loan for the project, requested that the court remove ownership from Blueprint due to these financial issues. Under the new agreement, Blueprint principals will keep an indirect stake in the property while claims are settled. Bankruptcy Judge Christopher Lopez stated that “all parties involved reached agreement in good faith” in his September 3 filing.
Ashford is taking on this project amid its own set of financial problems. A $590 million loan secured by 18 hotels owned by Ashford was recently transferred to special servicing after Ashford defaulted on its balloon payment and failed to refinance, according to Morningstar Credit.
In addition, Braemar Hotels & Resorts—a company founded and chaired by Bennett—put itself up for sale at the end of August as part of efforts to preserve shareholder value. Braemar’s stock has fallen significantly since 2013 and it now faces more than $1.1 billion in debt alongside $473 million worth of stock value, as reported by the Dallas Morning News.
These developments follow a proxy battle last year aimed at removing Bennett from leadership positions at both Ashford and Braemar.
