Hotel on shaky foundations - construction of elite four-star building in Smederevo under question mark

(Citadela Terme Hotel project)

In spite of the announcement by investor Integral energy from Belgrade that the elite hotel in Smederevo will receive its first guests at the end of 2010, the works have not even started yet. The investor has no money for restoration of the old hotel, and the unofficial information is that the project worth 10m EUR is ruined and that the building is for sale.

Citadela Terme is the name of a modern four-star hotel that was supposed to be built in the place of the dilapidated hotel of former company Jedinstvo. In addition to the computer animations of the exclusive facility, the investor's website also contains the information that the hotel will have 106 rooms, three restaurants, congress hall, spa center and indoor aqua park after the restoration. The complex would occupy the surface of nearly 3 ha and, because of the thermal waters whose temperature ranges between 25 and 31 degrees Centigrade, construction of two outdoor swimming pools with thermal water was in the pipeline as well. According to the website, the deadline for the hotel to be opened is the end of this or the beginning of the next year.

However, instead of a four-star hotel, the ruined building at the entrance to the city is still standing and the restoration has not even begun.

- We don't know what happens with this project. The investor visited us last year to ask about necessary documentation and licenses. We don't have any official information on the destiny of this project - says Vladan Biskupljanin, the Assistant Mayor for Investments and Development.

Unofficially, due to the crisis and lack of money, the project is already given up and the owner is looking for someone to buy the old hotel. However, the investor claims that it is not giving up in spite of the problems.

- We do not make hostel, but small tourist attraction, which requires a lot of money. The crisis contributed to the fact that the banks do not want to provide support. Even foreign partners are interested, but nobody's offering the money. The sale exists as an idea, but the situation is the same. Nobody wants to pay a dime - says Milan Marković from Integral Energy.

Jedinstvo in bankruptcy

After its mother company PUT Jedinstvo filed for bankruptcy, hotel Smederevo went bankrupt and, after several unsuccessful auctions, it was sold to company Integral Energy for 98m RSD in 2008. In addition to the hotel in Smederevo, the other project of this company is the hotel and ski center in Kolašin in Montenegro.