Topeka City-Owned Hotel Struggles to Maintain Occupancy Levels
Topeka city officials announced that the city-owned Hotel Topeka faced a decline in occupancy rates during the weekend following the Washburn Open track meet held at Washburn University. While 196 out of the 224 rooms were rented on Friday night, only 107 rooms were filled on Saturday night after the meet ended. These figures highlight the challenges the city is facing in running the hotel and finding a long-term operator.
The city’s decision to purchase the hotel last year was met with the responsibility to cover any incurred costs. The hotel has been losing an average of $15,000 per month, with a significant increase during the winter and early spring, reaching $150,000 per month. To address this issue, the mayor and council authorized an initial $500,000 to operate and maintain the hotel.
The city’s public works director, Braxton Copley, informed the mayor and council that the initial funding has been largely exhausted. As a result, he requested up to an additional $500,000 to finance ongoing operational and critical capital needs. This request was approved by the mayor and council with a 6-3 vote.
Background on the Hotel Topeka Purchase and Operation
The city of Topeka purchased Hotel Topeka to ensure the necessary improvements are made and to find a capable owner and operator to maintain the property. The city won the bid to buy the hotel for $7.6 million in June, after the mayor and council authorized the government to try to acquire the property.
To carry out the purchase, a single-purpose entity was formed by the city in mid-October to take ownership of the hotel, obtain necessary licenses and insurance, and contract with a management company. The Topeka Development Corporation was responsible for managing day-to-day operations and overseeing contracts with GF Hotels & Resorts for operating the hotel, as well as contracts for asset management and a facilities assessment.
Financial Struggles Prompt Additional Funding Request
With the hotel continuing to incur costs and the initial funding nearing depletion, the city’s public works director has requested up to $500,000 in additional funding to meet ongoing operational and critical capital needs. The request was approved by the mayor and council, with six members voting in favor and three dissenting.
Council Discusses Potential Building of Garage
To replace the current garage for the city’s light-duty vehicles, which needs to be torn down for the rebuilding and realignment of the Polk-Quincy Viaduct, the mayor and council explored the possibility of constructing a new garage on city-owned property. While no action was taken during the meeting, council members expressed their willingness to entertain the idea and raised questions about the design and cost of the new facility.
Contact Information for Further Inquiries
For further information or inquiries about this article, please contact Tim Hrenchir at [email protected] or 785-213-5934.
Analyst comment
Negative news: The city-owned Hotel Topeka is struggling to maintain occupancy levels, with a significant decline in bookings after a recent track meet. The hotel has been losing money and requires additional funding for ongoing operations. The council approved an additional $500,000 to cover costs. The hotel’s financial struggles highlight the challenges the city faces in running the property and finding a long-term operator.
