Aug. 21–The Marriott San Antonio Northwest hotel that overlooks the intersection of Interstate 10 and Loop 410 is in foreclosure after its owner, Los Angeles investment firm Laurus Corp., defaulted on a $21.3 million loan.
The foreclosure comes after three contractors filed lawsuits against the subsidiary that Laurus formed to buy the 296-room hotel in 2014, alleging they weren't paid for nearly $500,000 worth of work they did as part of a $16 million renovation Laurus undertook for the hotel.
Several mechanic's liens have also been filed against the hotel over the last few years, including one for $266,116 by Michigan company GMI-NRC LLC this month.
The hotel is scheduled to be auctioned outside the Bexar County Courthouse on Sept. 4, according to a filing from the Bexar County clerk.
Spokespersons for Laurus and Marriott didn't respond to requests for comment.
The hotel, which was built in 1984, was assessed at $24.8 million this year by the Bexar Appraisal District.
Upon buying the hotel in June 2014, Laurus announced a "top-to-bottom renovation" to bring it up to Marriott's current standards. The hotel also features 8,500 square feet of meeting space and a 6,084-square-foot ballroom, according to a news release from Laurus.
"Given San Antonio's status as the second largest city in Texas and one of the fastest growing in the nation, we saw this acquisition as a highly-attractive opportunity to implement a value-add strategy and maximize revenue by bringing back its past glory," Phil Cyburt, Laurus's CEO, said in a news release from 2014.
Three years later, a company named Hotel Rehab Specialist sued Laurus's subsidiary, SAT NW Hotel Partners, claiming it wasn't paid $313,569 it was owed for helping renovate the hotel, and it attempted to foreclose on a mechanic's lien it had put against the property.
Another company, Moore Supply, sued the subsidiary for breach of contract that year, alleging it wasn't paid for $6,844 worth of work. The two parties reached a settlement, filings show.
In March of this year, local company Texas Chiller Systems sued, saying it was owed $174,615 for its share of the renovations. The company withdrew the lawsuit after a settlement.
Laurus also owns the 384-room Hilton San Antonio Airport hotel, which underwent $12 million of renovations, including the addition of an Asado Seafood & Grill restaurant, after Laurus bought it in 2012.
In June, local company Service Mechanical Group sued another subsidiary that Laurus formed to buy the Hilton San Antonio Airport, claiming it was owed $19,680 for renovations.
Richard Webner is a staff writer in the San Antonio and Bexar County area. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. — rwebner@express-news.net — Twitter: @RWebner
