The Elizabeth Spa in Karlovy Vary is of interest to Hilton, negotiations on the terms will begin

Publisher
ČTK
08.11.2023 18:40
Czech Republic

Karlovy Vary

Karlovy Vary - Representatives of the Hilton hotel chain today confirmed their interest in operating the Elizabeth Baths at the Karlovy Vary council meeting. The last municipal spa facility in Karlovy Vary has been suffering from long-term losses and requires significant investments. Hilton would like to expand the accommodation facilities at the Elizabeth Baths so that it can serve as a fully-fledged spa hotel. The council instructed the city management to negotiate the future use of the Elizabeth Baths.


Independent hotel chain consultant Tomáš Longa, who presented the plan at the council meeting today, stated that the most common form for Hilton is to find a national or multinational investor who will cover the investment in the building, while Hilton will subsequently operate the hotel. "Karlovy Vary has great potential. Hilton would like to utilize the hot spring that the Elizabeth Baths use. And the spa services should continue to remain. Under what conditions depends on further negotiations,” Longa stated.

According to the mayor of Karlovy Vary, Andrea Pfeffer Ferklová (ANO), the city will not have the funds for the investments. Hilton's interest, according to her, indicates that the city is attractive. "That is the main message for me, and we need to start negotiating," the mayor commented today. It is not excluded that the building could remain in the city's ownership. However, as the owner, the city would find it difficult to seek funds for investments. Therefore, a sale is also possible.

"We are currently expressing interest. The moment we have even a hint that there would be interest on your part, an army of architects, ecologists, and other people will step in to prepare the project. But we are at the beginning. We find the property interesting, it is a good time, and we can replace a client that has left the city," Longa stated.

However, some councilors today demanded that public spa services be preserved. Longa did not refute this, stating that residents of Karlovy Vary will continue to have access to these services. However, the mayor reminded that the Elizabeth Baths no longer have much in common with traditional spa services. "A spa stay is a complex service; you adhere to a spa regimen, accommodation, meals, walks, and similar activities. It is not just about receiving prescribed rehabilitation," Pfeffer Ferklová stated.

According to Hana Žáková, chairwoman of the board of the Elizabeth Baths, the spa facility provides treatments for more than 20,000 people annually. According to her, maintaining accessible care for local residents is essential.

One of the employees of the Elizabeth Baths pointed out at the council meeting today that if the facility were to convert into a hotel, a large portion of patients would lose these health services. He reminded that the Elizabeth Baths also serve as a cultural venue and are a suitable place for medical internships.

Deputy Mayor Miroslav Vaněk (Karlovaráci) emphasized, however, that the city-owned company already has a loss of 130 million and it will continue to grow. The city does not have funds for basic repairs, let alone investments exceeding a billion.

The Elizabeth Baths are the last spa facility in the city that is under municipal administration. In recent years, the city has only subsidized the operation with 20 million crowns annually. Thus, there is a lack of funds for necessary investments, mainly to improve the building's energy efficiency, which was originally built in the early 20th century for summer operation only. The city still owns the Castle Baths, but it has long-term rented them out and is now looking for a new tenant.
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