The City of Topeka announced Tuesday the potential sale of Hotel Topeka, located at 1717 SW Topeka Blvd. City Council and City staff understood the importance of finding a buyer that has the resources and vision to revitalize the property, while also recouping the funds that were invested by the City of Topeka.
Endeavor Hotel Group, a Hospitality Investment and Hotel Management Company based in Wichita, has submitted a Letter of Intent (LOI) for the purchase of Hotel Topeka. Their team brings deep industry experience, having previously managed over 46 hotels in 23 states. Endeavor currently manages seven hotels across the central U.S., including locations in Topeka, Lawrence, Norman, Columbia, Little Rock, and the Minneapolis area. Endeavor specializes in larger, upscale conference hotels and is actively building a regional portfolio of 25 to 30 properties over the next five years. Their approach centers on a proven “Reimagine, Rebrand, and Reposition” strategy aimed at delivering exceptional guest experiences and long-term value.
“Our team is excited to add the Hotel Topeka to our portfolio,” said President and CEO of Endeavor Roy Arnold. “We have a clear vision intended to create value for the community and to make Topeka a preferred destination for regional conferences and events.”
Endeavor plans to make an investment of approximately $6.0M for the rehab of the Hotel, plus it envisions spending another $2M to supplement operations until stabilization of the property
To date, the City of Topeka has spent $12.2M on Hotel Topeka. The agreement is structured to include a $1M cash payment, with the remaining $11.2M balance to be paid off with the proceeds from a CID (Community Improvement District) and the incremental increase in Transient Guest Tax. It is estimated that it will take approximately 20-years to recoup the City’s investment.
“Even though we are not recouping all of our investment up front, we recognize the risk that comes with the large investment that the Endeavor Group is making and want to make sure they are successful,” said Mayor Michael Padilla. “Ultimately, the more successful they are, the faster the City will be able to recoup the investment we made in Hotel Topeka. CID and TGT are taxes only collected from individuals that are staying/spending money at the hotel property.”
The LOI is contingent upon Shawnee County agreeing to provide Endeavor a long term management agreement for the Maner Conference Center, as well as the County investing approximately $6.0M in the rehabilitation of Maner to the same level as that proposed for Hotel Topeka.
“I’m excited about the vision Endeavor brings to Hotel Topeka and the potential it holds for our community,” said City Manager Dr. Robert Perez. “Selling the hotel was one of my top priorities this year, and it was important to the City Council and me that we find a buyer with the experience and resources to truly transform the property. Endeavor’s track record and strategic approach give us great confidence that this hotel will become a vibrant asset for Topeka once again.”
