Hotel complex Rimski vrelec (Roman spa)
The area of the hotel is located in the northern part of Slovenia in the Municipality of Ravne na Koroškem, in the immediate vicinity to the Austria–Slovenia border, at the foot of the Karavanke Mountain Range, and in the direction of the Pohorje Hills and the Pannonian Basin. The hotel has a prime location at the foot of Mount St. Ursula (Uršlja gora) near the urban settlement of Kotlje and the town of Ravne na Koroškem. The development area is situated in a high-quality natural environment. The hotel is located in the midst of unspoilt nature and a well-maintained cultural landscape, without agricultural or industrial polluters.
The immediate location of the hotel comprises 16,940 m2. The plot is entirely developable for construction purposes without any particular limitations.
Total net usable floor area of the hotel:
- Net hotel floor area 5,000 m2
- Net wellness floor area 1,200 m2
Total net floor area 6,200 m2.
The hotel’s location is particularly attractive due to its immediate proximity to the mineral water spring with healing properties. The current water flow of 1.2 l/sec is sufficient for the purposes of the spa and wellness activities of the hotel.
By taking into account the size of the location, investment costs, and management assessment, the selected starting capacity of the hotel is between 100 and a maximum of 150 units. With a smaller number of rooms, the economy of the management extent is suitable for a hotel with a family-oriented approach of operation and management but without the potential for further development that is made possible by the location and available options in the region. For a lucrative management scale, the selected starting capacity of the hotel is 120 units, including 117 rooms and 3 suites. Naturally, the investor is able to adjust the capacity according to their needs and desires as well as the investment estimate. Since it is appropriate that the hotel should operate throughout the entire year, which entails the inclusion of a wide marketing range, including the classic tourist, spa, and business products, in addition to the basic hotel infrastructure, an area for providing conference (MICE: meetings, incentives, conferences, events) and wellness offers is also necessary. As regards to the wellness offer, we are starting from the premise that the wellness and spa segments are an additional part of the hotel offer and not its main activities.
To meet the requirements for a 4* hotel, the Hotel Stars criteria were used, which were developed and adopted by a group of 17 European countries, as updated and applicable from January 2015. These criteria will also be adopted by Slovenia in 2017. They specify the appropriate size of rooms with a bathroom for the selected category of hotel and represent the basis for determining the size of usable surfaces of hotels. Considering the extent of the available area for the construction of the hotel, the suitable size of a room including a bathroom is 20 m2 and 30 m2 for suites. Taking into account public spaces, such as the reception lobby, the reception back office, the breakfast lounge with a restaurant, the kitchen with a food preparation room and storage rooms, the waiters’ office, and other usable rooms at the hotel, the minimum required usable surface of the hotel is at least 5,000 m2.
This surface does not include the wellness area with a swimming pool or the conference hall with three smaller rooms designed for conferencing activities or catering needs. Because the Rimski Vrelec is not a specialized wellness hotel, an additional surface of 10 m2 per room should be accounted for, which amounts to another 1,200 m2. The exact size of surfaces can be determined only on the basis of engineering solutions, which are decided and authorized by the investor
- The hotel can be easily accessed by cars or buses. From the northerly direction, the location is only 20 km away from the highway leading from Vienna, Graz, Klagenfurt and Villach, and is easily and quickly accessible via the regional road
- The hotel’s location is particularly attractive due to its immediate proximity to the mineral water spring with healing properties. The current water flow of 1.2 l/sec is sufficient for the purposes of the spa and wellness activities of the hotel.
- In addition to the hotel offer, a full year operation of the hotel is facilitated by many natural or man-made attractions in the region, ensuring the marketing of integrated products in all seasons.
Estimated investment in total
The value of the investment was estimated based on the guidelines defined by Kohl & Partner Hotel and Tourism Consulting, adjusted by taking into account the prices on the local market as well as the experience in the field of new constructions and revitalizations of hotels in Slovenia between 2015 and 2017.
Based on these premises as well as past experience with investments in complete revitalizations or new constructions of hotels on the Slovenian market, the estimated value per m2 for construction and artisan construction works, installations and equipment amounts to €1,100-1,200, while the estimated value range per m2 for the wellness infrastructure is €900-1,000.
The total estimated value of the investment in the Rimski Vrelec hotel will range between €6,580,000 and €7,200,000.
These values are only indicative and may vary according to the investor’s decisions regarding the hotel equipment, the food and beverage service equipment, the wellness infrastructure, and the equipment for the MICE segment.
This price excludes the cost of land, the preparation of the building site, the renovation of the spring, and the engineering design expenses
Type of investment:
The following options for obtaining land are available to the investor:
1. Purchase of land
The purchase is carried out on the basis of a sale/purchase agreement between the Municipality and the investor. The price of land, the payment terms, and any subsidies granted by the Municipality will be agreed upon with the selected investor. The agreement between the investor and the Municipality shall also specify whether the subject of the sale/purchase agreement is the land with the existing building or land including public utility infrastructure with the existing building removed.
2. Partnership principle
There is an option of establishing a joint undertaking for building the Rimski Vrelec hotel complex. This option involves the participation of the Municipality of Ravne na Koroškem with an in-kind contribution for the building area of 16,940 m2 intended for the construction of the hotel complex with the mineral water spring. The co-ownership of the undertaking also gives the Municipality the right to participate in the operation and management of the hotel complex. A forward contract could also be concluded, which specifies when and at what price the investor is able to purchase the land from the Municipality, after which the Municipality withdraws from the co-ownership relationship.
Phase of the project:
The hotel is empty and intended for demolition.
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