Architecture firm to buy historic spa

The historic Kemeri spa hotel in the Latvian sea-side resort town Jurmala is going to be sold to Latvian architecture agency Arhiidea, one of the secured creditors of the insolvent company Ominasis Latvia, which owns the Kemeri spa hotel.

"The real estate of the Kemeri spa hotel will be sold to Arhiidea, a secured creditor of the insolvent company. The sales price will be the starting price (of 2.9 million euros) in the last failed auction,” Ainars Kreics, the insolvency administrator of Ominasis Latvia, told BNS Tuesday.

The creditors of Ominasis Latvia approved the sale at a meeting that day, he said.

Arhiidea representatives will work with Park Hotel Kemeri in the further reconstruction of the Kemeri spa hotel, said Kreics. Park Hotel Kemeri as the only bidder was declared the winner of the latest auction to sell the Kemeri spa hotel in October 2014, but failed to pay for its purchase, thus the results of the auction were voided.

Andrejs Danengirss, a representative of Park Hotel Kemeri, confirmed that the reconstruction of the historic complex would go on with the intent to re-open as a spa hotel. Future business plans included cooperation with the French company Vichy, he said.

The Jurmala city council has also been notified about the buyer’s plans for the Kemeri spa hotel, said Kreics.

After four unsuccessful auctions that failed due for lack of bidders, the Kemeri spa hotel was finally auctioned off on October 3, 2014, to Park Hotel Kemeri company, fully owned by Russian citizen Alexander Gusakov. But Park Hotel Kemeri failed to pay the price of three million euros for its acquisition by the deadline, November 3, 2014, and the results of the auction were annulled. The starting price at the auction was 2.9 million euros.

The historical Kemeri spa hotel was privatized years ago but its new owner, Ominasis Latvia, had been struggling with the extensive renovation of the complex and was declared insolvent in spring 2013 after the death of its Arab investor. Renovations have been on hold since then and the once popular spa hotel is now in crumbling condition.

Arhiidea was founded in 2003 and belongs to three Latvian individuals -- Eriks Grube (54 %), Martins Hermansons (36 %) and Toms Kokins (10 %). The company earned a profit of 106,600 euros on a turnover of 487,200 euros in 2013, according to the information published in the Latvian business register database.

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Economy
Economy