A little-known European company with ambitious plans has sparked public outrage in Toronto, Canada. The company, which operates a spa and water park in Romania, is seeking to develop similar facilities globally, with a notable contract in Toronto that includes a favorable 95-year lease where the Ontario government covers upfront costs amounting to hundreds of millions of dollars.
Last year, auditors found the contracting process to be unfair and opaque, coinciding with the European spa company, Therme, advancing its plans for a multibillion-dollar expansion into major cities across North America, Europe, and the Middle East.
A New York Times investigation revealed that Therme misrepresented itself in its bid to secure the Toronto deal, exaggerating its experience and misleading the Ontario government. The investigation, based on corporate filings and interviews, found that Therme falsely claimed to operate multiple spas in Europe, when in reality, it had only built and operated one facility near Bucharest, Romania. Additionally, auditors noted that Therme's financial situation appeared precarious, with losses and less than 1 million euros in equity.
The Toronto project has provided Therme with crucial momentum, enabling it to secure funding for a similar project in Manchester, England, and to plan developments in Dubai and Washington, D.C. Each project is estimated to cost around half a billion dollars, necessitating at least $2.5 billion in total investment. Therme executives have actively promoted their vision at high-profile events, asserting a vast, untapped market for their unique blend of water park and wellness facilities.
Ontario Premier Doug Ford has faced criticism regarding his administration's relationship with developers, particularly in light of the Therme deal, which involves leasing an artificial island in Lake Ontario. The government took several unusual steps to reduce oversight, exempting the project from key environmental checks and classifying it as a real estate transaction to avoid rigorous reviews.
The bidding process for the project was also atypical, requiring participants to sign nondisclosure agreements and allowing the government to select any company, regardless of whether it met the bidding requirements. Infrastructure Ontario stated that the process was designed to be flexible while incorporating best practices from formal procurements.
Premier Ford has publicly supported the Therme project, describing it as a state-of-the-art facility. However, Therme's claims of operating multiple facilities were misleading, as the only spa it had operated was in Romania. The company’s founder, Robert Hanea, had named his Bucharest spa in homage to a friend who owned a different spa company in Germany, leading to confusion regarding their business connections.
Despite its financial challenges, Therme has aggressively pursued expansion, hiring a large team of experts and engaging in extensive public relations efforts. The company has received backing from an Austrian engineering firm, which has supported its operations financially.
Therme's Toronto deal has led to further announcements of new projects and increased public relations activities, including hiring urbanists and acquiring art installations for future facilities. The company has also submitted proposals for developments in Washington, D.C., and Dallas, Texas, while recently purchasing the German spa it had previously claimed to operate.
In 2025, Therme announced its first outside investments, securing $250 million from an American real estate firm to advance its Manchester project and a 25 percent equity stake from another firm for its U.S. operations. Although Therme has yet to secure outside investment for its Toronto project, the Ontario government has begun clearing land for development, with construction required to start by spring 2026.