Repairs of the Castle Spa in K. Vary will cost millions of crowns

Karlovy Vary - The city of Karlovy Vary has taken back the Castle Spa from the tenant into its management. The facility operated as a spa center, but it has been out of operation since 2020 when the anti-epidemic measures came into effect. This has also affected its condition. Repairs will cost millions of crowns, and adjustments for expanding services will amount to about 20 million crowns, said Deputy Mayor Miroslav Vaněk (Karlovaráci) to reporters today.

"They are in a condition that requires an immediate investment of about two million crowns to meet technical standards and other requirements for the spa to be operational. However, some damages are such that, according to the expert's assessment, about six million crowns will be needed to restore the facility to its pre-COVID state," Vaněk described.

The facility was reconstructed in 2000 and 2001 at a cost of 132 million crowns, invested by the tenant - Castle Kolonáda a. s. (later Castle Kolonáda, s. r. o.). The statutory city of Karlovy Vary holds a 10 percent stake in the company, with EDEN Hotels s. r. o. owning 90 percent.

However, due to a change in clientele even before the pandemic, and especially after its abatement and the war in Ukraine, the Castle Spa ceased to be beneficial for the tenant. Last year, the company terminated the lease with the city, claiming that the technical condition of the facility made its use impossible. However, the city did not acknowledge this, as it did not consider it a valid reason for termination of the contract. Given that the company had not paid rent since mid-last year, the city issued a notice of termination for valid reasons—non-payment of rent—this spring. The notice period expired on September 30 of this year, and on October 2, the city officially took back the facility from the tenant.

According to Vaněk, the priority for the city is the repair and reopening of the spa. So far, two interested parties have expressed their desire to operate it. The city will now begin negotiations with them about leasing and necessary investments. For the Castle Spa to sustain itself even in the current situation, Vaněk believes it would be essential to bring in more commercial services. According to the expert's estimates, this will require about 20 million crowns in investments.