Crews will demolish the Hampton Inn hotel.
A fire damaged the structure, at 501 E. Poyntz Ave., in January.
Karen Hibbard, director of the Manhattan Convention and Visitors Bureau, told the Manhattan City Commission on Tuesday that the hotel owner, Little Apple Hotel Partners of Overland Park, does not plan to rebuild.
Hibbard did not say what will go in the spot after the demolition.
The owners did not return a message from The Mercury requesting comment.
The fire caused about $5 million in damage, according to the Manhattan Fire Department. Officials said the fire caused an estimated loss of $2.5 million to the structure and $2.5 million to its contents.
While trying to contain the fire, which took just over two hours, a hotel room on the third floor collapsed to the ground level.
Investigators determined that cutting from construction work on the roof accidentally started the blaze.