Four years after the padlock was placed on what was once a trademark of Montenegrin tourism, the Sveti Stefan City Hotel could open this summer, if the government and the tenant - "Adriatic Properties" - sign a document signed by the Greek businessman's company. Petros Statis has reportedly already given the green light.
"Vijesti" has been confirmed by several sources that an agreement on the opening of Svec and Vila Miločer is on the horizon. According to "Vijesti", the document, after including the Government's suggestions, was submitted to the Government for initialing.
The document allegedly stipulates that the two parties will put the arbitration proceedings before the International Tribunal in London on hold for half a year, and that an elite resort will be opened during that time.
The agreement, as confirmed to "Vijesti" by several sources, is that within those six months the two parties will resolve all their mutual problems through negotiations and amicably exit the arbitration proceedings. The state and the lessee are reportedly expected to reach a final agreement by the end of the month. The main hearing before the international tribunal is scheduled for mid-May.
One of the key points of the agreement, as "Vijesti" was told, is that the use of the most beautiful Montenegrin beach - Queen's Beach, will be reserved for guests between 8 am and 20 pm, and after that it will be free for the public.
The Adriatic Properties company has been keeping the Sveti Stefan and Villa Miločer hotel closed for four summers, and has also suspended the construction of the new Kraljičina plaža hotel since the arbitration proceedings began. Without an agreement on the functioning of Kraljičina plaža and the path between that beach and the spa center in Miločer Park, the hotel operator Aman did not want to open the Sveti Stefan hotel because, as previously announced, they cannot guarantee guests' safety and privacy...
The Djokovic Factor
At the beginning of February, the most successful tennis player in history Novak Đoković tried to help remove the padlock from the city-hotel Sveti Stefan, which has been closed since 2021. After talking with the Prime Minister Milojko Spajić, Djokovic then told "Vijesti" that this was the main reason he was staying in Montenegro, emphasizing that he would use his name and influence to solve the problem.
The global ambassador of the company "Aman" explained that they had conducted "initial discussions" and were informed "about everything", emphasizing that he was trying to work for the "general interest" of Montenegro and that he hoped that a solution to the problem would soon be "on the horizon"...
The saint celebrates his 65th birthday this summer, since the small fishing village of Paštrov, a medieval fortress that resisted invaders for centuries, was transformed into a fashionable summer resort by the decision of the communist authorities at the time.
Last season, the locals' dissatisfaction with Sveti Stefan being under lock and key culminated, and more radical moves were announced - blocking the roundabout on Zavala at the entrance to Budva, but they gave up on that after receiving assurances from the Government that the city-hotel would be opened, which did not happen.
It was the use of Queen's Beach, which had been closed to the public for decades and reserved exclusively for hotel guests and the political elite, that led to the closure of Svec. The city-hotel was closed in 2021 after locals broke the fence on Queen's Beach, and the Public Company for Coastal Zone Management ordered its removal, freeing up the paths in Miločer Park for use.
After the incident in the summer of 2021, Adriatic Properties sought guarantees from the state that it would not happen again, but they did not receive them. The state then initiated arbitration proceedings in a London court, arguing that the contract had been breached, and Adriatic Properties then retaliated by demanding one hundred million euros in damages.
This has also caused a new problem, that for almost two years, Statis' company has refused to pay rent to the government company HTP "Miločer" for the Miločer Park complex, where the old Kraljičina plaza hotel was located, until the arbitration is completed. On that site, Statis' company has begun construction of a new hotel, with apartments for the market. The quarterly installment is 87 thousand euros.
According to several sources, it has been agreed that the two parties will resolve all their mutual problems through negotiations and amicably exit the arbitration proceedings...
The quarterly rent of 380 thousand euros is not being paid to the company "Sveti Stefan Hotels", the owner of the city-hotel Sveti Stefan and Villa Miločer.
Both companies are therefore in an extremely difficult financial situation...
The Commercial Court recognized the decision of the Court of Arbitration in London, and ordered the company "Sveti Stefan Hotels" and the Government to pay 522 thousand British pounds, or 620 thousand euros, to the company "Adriatic Properties" for the costs of the proceedings before the international tribunal.
"The proposal for the recognition of a foreign arbitration award by the applicants 'Adriatic Properties' DOO Budva and 'Aidway Investments Limited' from the British Virgin Islands is adopted, and the foreign arbitration award - the Second Partial Arbitration Award of the London Court of International Arbitration, dated September 25, 2023, with the Supplement to the Second Partial Arbitration Award dated October 12, 2023, is recognized, and is equal to the decisions of the courts of Montenegro and produces legal effect as well as decisions made by the courts of Montenegro," the Commercial Court's decision states.
Protector of property and legal interests of Montenegro Bojana Cirovic filed an appeal with the Court of Appeal against the decision of the Commercial Court.
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