Holiday Destination: The Revitalization Of Rimske Terme

Executive Summary
Rimske Toplice is a lovely town in the right bank of the Savinja River that takes its name after the Roman baths built to exploit the benefits of the local thermal springs. The location has been very popular since the second half of the 18th century with most spa facilities dating back to 1840. After World War II, there was a center for medical rehabilitation run by the Army until Slovenia’s independence when the efforts to find investors for a makeover of the run-down facilities failed. The economic conditions improve eventually, but the scale of the renovation of the historical location and the addition of new amenities discouraged potential developers until March 2006 when the Government of the Republic of Slovenia became a shareholder in the newly established limited liability company Rimske terme. The underlying idea was to launch a renovation project that satisfies both the need to preserve the past and the need to meet the desires of future guests.

The make-over of some 29,000 m2 of the resort and spa includes the renovation of Sofijin Dvor to a four-star hotel with 43 rooms including five suites and an a la card restaurant with 80 seats., and the renovation of Zdraviliški Dvor to a three- and four-star accommodation facility with 73 rooms. The project envisages the construction of a new four-star hotel - Rimski dvor with 68 deluxe rooms (136 beds), and a fine-dining restaurant with 90 seats, a coffee bar, three congress halls with 80 seats each, two meeting rooms with 20 seats each, a hotel club, the Amallia’s SPA (Sauna Center, gym, fitness center, beauty and massage parlor) and a rehabilitation health center, and a villa with three apartments.

Current Status
Today’s developers have addressed the challenge of maintaining the resort & spa dating back to the Austro-Hungarian Empire and at the same time updating its amenities to be competitive with other major health resorts. The renovation has been designed in two phases, with the first being already completed, and the second beginning shortly and planned to be completed early in 2011. Specifically, the renovation and refurbishment of the hotels Sofijin dvor and Zdraviliški dvor have been completed and groundbreaking for a new hotel building has taken place already. The project has obtained co-financing from the EU funds (6.8 million euros) and a consortium of major Slovenian banks has approved a 20 million euro loan to complete the centrally located building. Co-financing for the rehabilitation of the landscaped areas, upgrades to trails, promenades and traffic should arrive from the Ministry of Culture. 

Investment Opportunity
Similar revitalization projects in Slovenia have transformed the spa, recreational and meeting experience at other venues across the country. The annual economic output generated by the Rimske Terme renovation project should total millions of euros annually. During the construction phase the project will create direct, indirect and induced jobs and wages, employ construction personnel and generate tax revenues. Upon completion and when fully operational, the resort & spa will generate a steady economic output including jobs and wages, create dozens of permanent direct, indirect and induced jobs and generate tax revenue.

The investment is co-financed with EU non refundable funds in the amount of € 7 million, there is a syndicated bank loan for 20 million euro and an opportunity for investors that provide assets and project management services for resorts and spas. The Resort & Spa Rimske Terme is poised to steal the limelight from other venues for health, leisure and meeting experience with its natural and historical sights, and no serious investor would like to miss out on this opportunity.

The completion of the top-to-bottom makeover and the construction of new facilities is expected in 2011 subject to funding.

Budget/Total Cost

Financing in the range of 50 million euros would result in a high-class spa with corresponding amenities, fine-dining restaurants, pools and other free-time options.

Bank loans: 41%
Shareholder capital: 42%
Unrefundable funds: 14%
Loan from public funds: 3%

Project Finance/Support
The investment is co-financed with EU non refundable funds in the amount of € 6.8 million, there is a syndicated bank loan for 20 million euro and an opportunity for investors that provide assets and project management services for resorts and spas. The Resort & Spa Rimske Terme is poised to steal the limelight from other venues for health, leisure and meeting experience with its natural and historical sights, and no serious investor would like to miss out on this opportunity.

The completion of the top-to-bottom makeover and the construction of new facilities are expected in 2011.

Project Advantages
The Ancient Romans built the first baths and the modern man equally appreciates the healing power of the thermal springs (38-39 ºC) that surface at some 660 m above the sea level near Rimske Toplice. The project combines the allure of a modern resort & spa with the historical location and its natural beauties. Rimske Toplice can be easily reached from all parts of Slovenia and from the neighboring countries, and the local community is highly supportive of the resort & spa revitalization project.