The textile industry was just one of the sectors doomed by the opening of trade borders and the rise of competition from the Far East. The Slovenka clothing manufacturer was a major employer in Banska Bystrice, but its traditional position in the city couldn’t save it from ruin. Karol Konarik, sales and marketing director for Slovenka Resort, says that as one of the main creditors of the old factory, his company was able to come away from the liquidation of the factory with ownership of the land beneath it.
Industrial locations in the centers of regional areas have great potential for commercial development but often suffer from fragmented ownership. This one was unified, meaning that the project company, now called Slovenka Resort, could concentrate on creating a feasible business plan. The investor has decided for a mix of residential, shopping and a hotel.
It’s with this last component that Konarik has the most experience, as he is sales director at the Kaskady hotel just a short drive to the north of Banska Bystrice. Konarik claims a new one in the center of town would be able to compete with the town’s traditional hotels, without competing with his own, which is so close by. Kaskady is focused around its wellness facilities, including a large pool, an extensive fitness center, along with massage rooms and a sauna. This new hotel will be focused on business customers rather than tourism, so there will be no pool, and the smaller fitness center will add value rather than be a main attraction.
As for the existing hotels in Banska Bystrice, Konarik says they’re older and sorely in need of investment. Slovenka Resort’s hotel will not only be new but will be targeted at the price-conscious business travelers as well as the congress and conference market. In the belief that most of the free extras in business hotels are wasted on their visitors, Konarik says that breakfast, Internet access and parking will all be be added to the bill. “Business travellers just come in the evening and just want to sleep. They have breakfast on the road.
Like all hotels, Konarik’s will go after the once-lucrative congress business. “Companies like to do such activities in this region. There used to be a Dum Culture, where there were concerts, theater and fashion shows, and we’d like to be able to do that by having a congress room with balconies with a capacity of 350 seats.”
By far the largest portion of Slovenka Resort will be the 11,000 sqm shopping center, which will be spread across two floors and will be occupied by 60 shops. Remarkably, Konarik claims 35 percent of the mall has already been reserved, and he’s confident of bringing new brands to the city. Above the shopping mall, Konarik is planning a residential component of 85 apartments, and by no means a standard one. “We want to make it possible for people to have fireplaces in their flats. There will be garbage chutes, things that haven’t been standard here.”
Financing, claims Konarik, won’t be a problem. “We’re going with so much equity that banks will have no problem giving us a loan.” In fact, the Konarik name resonates in banking circles, as his father Karol Konarik followed up a successful singing career with several business projects that proved highly profitable along with a spell in national politics.
The construction permit for this €38m project is not yet in place, pushing the start of construction back from this summer to the fall.
The hotel sector may be in crisis in cities across CEE, but Konarik says a long-term perspective is necessary. He says Kaskady, which has been operating for five years now, made the same revenues in 2009 as it did in 2009. “We achieved this of course by reducing prices, and we served 1,500 more customers per year. But if you look at that another way, those extra customers mean a new clientele. The crisis won’t last forever. The crisis might leave in a year or two, but those 1,500 people enjoy themselves. Some of them will come again.”