The Topeka Development Corporation on Nov. 5 approved a proposed 2026 operating budget for Hotel Topeka that forecasts a $1.75 million net operating loss.

Deputy City Manager Braxton Copley told the board the hotel is tracking a substantial operating loss in 2025 and that the packet presented projects a deeper loss in 2026. “The proposed budget for 2026 is a $1,750,000 loss,” Copley said, and he attributed the increase primarily to lost food-and-beverage and room revenue after long-standing events and conferences declined to return.

Copley summarized recent financial history for the property, saying the hotel initially forecast an $870,000 loss for 2025, revised that to about $1.35 million to $1.4 million and that year-to-date results through September showed roughly a $1,050,000 loss. He told the board he had forwarded a spreadsheet explaining a roughly $400,000 increase in the projected loss between 2025 and 2026, primarily tied to groups that previously booked at the hotel choosing other venues.

Board members debated the context of the vote. A board member who moved the motion described the approval as a contractual, good-faith disclosure of expected operations for a prospective buyer rather than an affirmation that the city will operate to that budget. Copley confirmed the city remains the hotel’s owner until a sale closes and that the city’s adopted FY 2026 operating budget did not earmark funds to cover Hotel Topeka operating losses on the city general-fund side.

On the roll call, the clerk recorded yes votes from President Padilla, Vice President Dobler, Director Hiller, Director Miller, Director Duncan and Director Hofer and recorded no votes from Director Valdivia Acala and Director Banks; the presiding officer announced the motion carried.

The board’s approval allows hotel staff and the prospective buyer to proceed with contractual and operational planning while negotiations and due diligence continue.