City looks to hire brokerage firm for sale of Hotel Topeka
TOPEKA (KSNT) - The City of Topeka is looking to hire a brokerage firm to help with the sale of Hotel Topeka.
On Monday, Sept. 9 the City of Topeka shared a list of requests for bids, one of the requests was for 'Hotel Brokerage Services'. 27 News requested a copy of the request for proposal (RFP).
According to the document, the City of Topeka is looking for real estate brokerage firms to assist with the sale of Hotel Topeka. The city will evaluate the brokerage firm on the following aspects:
- 30% on hotel market knowledge.
- 25% on experience, qualifications, references and reputation.
- 25% on capacity, availability and understanding of scope.
- 10% on completeness and adherence to the proposal format.
- 10% on the reasonableness and transparency of the proposed fees.
The selected firm will be expected to develop strategies to attract potential buyers. According to the document, the city will consider the condition of the hotel and said it is prepared to negotiate "to balance the interests of both parties".
The RFP scope of work also included:
- Performing Market Analysis.
- Developing a 'Broker's Opinion of Value'.
- Developing sales strategies.
- Assisting in advertising.
- Providing site tours.
- Evaluating offers for the hotel.
- Provide insight on proposed plans to renovate and convert the hotel into a 'top-tier, full-serviced brand, such as Hilton, Marriott'.
- Economic analysis.
- Recommend offers.
- Negotiate the sale.
- Coordinate appraisals.
- Coordinate transactions.
- Handle all property transactions.
- Provide regular updates.
- Consult and periodically brief the Topeka Development Commission Board of Directors.
"The goal would be for the brokerage to attract an owner/operator to purchase the Hotel from the City and successfully rehabilitate and operate the property," said Taylor Bugg, a City of Topeka spokeswoman.
The window to submit an RFP will close Tuesday, Sept. 10 at 2 p.m.
Last year the City of Topeka released two requests for proposals for Hotel Topeka. The first request was to contract an asset manager to oversee the hotel and the second was seeking a vendor to evaluate hotel facilities and systems.
Following the RFPs, GF Hotels & Resort was hired to operate the hotel and RevPAR International, the consultant the city hired for $516,300, recommended the hotel be repaired at a total price tag of $10 million – and run independently. As of Feb. 2024, the City of Topeka had spent a total of $8,145,662 on the hotel including the original purchase price of $7,391,458.
Hotel Topeka had a net income loss of $131,101 in July 2024, according to a profit and loss statement from TOKS Associates LLC. The hotel has yet to have a profitable month since the purchase. The last time the hotel was profitable was in 2019 when it earned $799,000.
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