Scarlett, IHG Plan $158M Overhaul of San Antonio Hotel

A massive overhaul is on tap for a downtown San Antonio hotel.

IHG Hotels & Resorts and Scarlett Hotel Group aim to transform the shuttered Wyndham hotel at 111 East Pecan Street into a luxury hotel, the San Antonio Report reported. The project, which will be the city’s first InterContinental Hotel, is expected to cost $158 million.

Scarlett Hotel Group — led by principals Andrew Scarlett, Rob Sadoff and Zio Pekovic — acquired the 21-story property from Cypress Real Estate Advisors in 2021 and originally had plans for a $50 million overhaul. Scarlett has since worked with Denver-based investment firm Trailbreak Partners to secure financing, and the project has grown in scope.

The hotel currently has 400 rooms, a rooftop pool and direct access to the River Walk. After renovations, the InterContinental San Antonio will feature 40,000 square feet of meeting space, restaurants and bars and expanded rooftop amenities, the outlet said.

The hotel will be geared to the city’s business and convention industry. It will have co-working spaces designed to become private dining spaces at night. “Smart” glass will be installed in meeting rooms to better control backlighting or daylight for events and presentations.

San Antonio’s hotel scene has started to rebound this year after the pandemic hindered travel and caused hotel vacancies to soar. The city’s hotel occupancy rate reached a 17-year high of 68 percent last year, the highest among Texas’ major markets. Demand continues to grow, and revenue per available room is expected to exceed $89 this year.

—Quinn Donoghue