Topeka city leaders are increasing their financial commitment to Hotel Topeka, despite expecting a significant net loss in the coming year. According to Topeka Assistant City Manager Braxton Copley, the city is projecting a $1.2 million net operating loss for 2024. This financial challenge comes as the city continues to manage the hotel, which has been a costly venture since its acquisition in October 2023.
On Tuesday, the Topeka Development Corporation (TDC) reviewed and approved the 2025 budget for Hotel Topeka. The budget anticipates a net operating loss of $869,000 for the upcoming year. However, this plan was not unanimously supported. TDC board members Christina Valdivia-Alcalá, Sylvia Ortiz, and David Banks voted against the proposed budget, voicing their concerns over the ongoing financial challenges.
Later that same day, the Topeka City Council convened and voted on a separate financial measure. The council approved an additional $72,343.54 in operating funds for the hotel, aiming to cover short-term expenses. Once again, Councilmembers Valdivia-Alcalá, Ortiz, and Banks opposed the allocation, highlighting their skepticism about the long-term viability of the hotel.
Since the City of Topeka purchased the hotel in October 2023, it has already cost taxpayers nearly $10 million. This substantial investment has sparked debate over the hotel’s future and its ability to generate sufficient revenue. The continued financial support reflects the city’s ongoing struggle to balance its investment with the reality of the hotel’s operating losses.
In July 2024, the TDC turned down an offer for the hotel, highlighting the challenges in securing a suitable buyer.. The rejection led to further concerns about how the city could recover its investment and ensure the hotel’s success in the future. Despite these challenges, the city remains committed to exploring options for Hotel Topeka.
On December 10, Dan Garrett, the City’s Director of Communications and Media Relations, confirmed to 27 News that the City of Topeka has received four new offers for the hotel. The city is now evaluating these proposals, hoping to find a solution that addresses both the financial strain and the long-term future of Hotel Topeka.
Tags:Topeka Development Corporation (TDC), Topeka city,Hotel Topeka
