Hotel Topeka needs another $500,000 to finance its ongoing needs

TLDR:

Hotel Topeka requires an additional $500,000 to cover its ongoing operational and capital needs, according to Topeka city officials. The city had set aside $500,000 to operate and maintain the hotel last year, but those funds have now been largely exhausted. The hotel, which was purchased by the city in order to protect it and find a long-term operator, continues to face challenges in attracting guests. Topeka’s city government is seeking a company to manage the hotel on a long-term basis.

Article Summary

Topeka city officials have revealed that Hotel Topeka needs an additional $500,000 to finance its ongoing operational and critical capital needs. The hotel, which is owned by the city, had 196 rooms rented out on Friday night during a track meet at Washburn University, but only 107 rooms were filled on Saturday night, highlighting the challenges the city faces in maintaining occupancy. Last year, it was reported that the hotel was losing an average of $15,000 per month, including up to $150,000 in the winter and early spring months.

Topeka’s mayor and council had set aside $500,000 to operate and maintain the hotel last year, but those funds have now been largely depleted. The city’s public works director has requested additional funding of up to $500,000 to cover the ongoing needs of the hotel, and this was approved by a 6-3 vote. The ultimate goal is to find a developer or entity to purchase and operate the hotel.

In May 2024, Topeka’s city government authorized the purchase of Hotel Topeka, which has an appraisal value of $3 million. The city bid about $7.6 million in an auction in June to secure the hotel. Following the purchase, a single-purpose entity owned by the city was formed to take ownership of the hotel and contract with a management company. GF Hotels & Resorts was selected to operate the hotel, and contracts were awarded for asset management and facility assessment.

In addition to the hotel funding, Topeka’s mayor and council also discussed the potential construction of a new garage to replace an existing one, at an estimated cost of $5.5 million. No decision was made on this matter during the meeting.