Once a trademark of Montenegrin tourism, the city-hotel "Sveti Stefan" will likely be closed for the fifth summer in a row, as the Government has not responded to the tenant's offer of a partial settlement and termination of the arbitration proceedings for a month and a half.
This was confirmed by "Vijesti" from several sources.
The tenant of the hotel complex “Sveti Stefan - Miločer”, the company “Adriatic Properties” of a Greek businessman Petros Statis, and partner companies "Aidway Investments Limited" and "Amanresorts Management" signed the agreement and sent it to the Government for initialing, but there has been no response.
On April 8, "Vijesti" sent questions to the Prime Minister's Office. Milojko Spajić, but also to the Ministry of Economic Development, headed by Nick Djelosaj, but until yesterday there was no answer as to whether there were any problems with concluding the agreement and the details of that document...
The main hearing before the International Tribunal in London is scheduled for May 18th, and as of May 2nd in the British capital, as explained by a source for "Vijesti", a gathering of arbitrators, consultants, experts is planned... The source also states that this is the deadline by which the two parties could notify the tribunal of a possible cessation of the dispute.
"Adriatic Properties" and "Aman" are reportedly ready to open the resort, but, as told to "Vijesti", the state needs to give its legal team clear instructions to request a stay of arbitration with the tenant's legal representatives.
If this does not happen, the arbitration process will continue, which also means that the city-hotel Sveti Stefan and Villa Miločer will remain under lock and key.
As "Vijesti" was told, the plan was for Villa Miločer to open on May 21st, Independence Day, and for Svetac to receive guests on July 1st.
"Aman" has not yet "opened" bookings for the upcoming summer due to the government's silence.
Citing unofficial information, "Vijesti" previously announced that the agreement, which is marked as a confidential document, envisages the opening of the Sveti Stefan and Vila Miločer city-hotels this summer, but also that the arbitration proceedings before the international tribunal in London, initiated by the Government of Montenegro against the three companies, be put on hold, so that the "conflicting parties" can find a compromise.
No one has denied that information until yesterday.
In addition to the Government, namely the Ministry of Economic Development, the agreement is also expected to be signed by the management of the majority state-owned companies "Sveti Stefan Hotels", HTP "Miločer" and HG "Budvanska rivijera". The agreement must also be given the green light by the Municipality of Budva, as one of the parties, as well as the Public Company for Coastal Zone Management.
The agreement stipulates that, if signed, within one day, the government companies and the relevant ministry, as well as Statis' company and its partner companies, will jointly submit a request to the tribunal in London to suspend the arbitration proceedings. At the same time, the "disputing parties" will use, as stipulated in the agreement, the period of suspension of the arbitration proceedings to reach a final settlement.
By signing, Statis' company is committing, except for this summer, to keeping Sveti Stefan and Villa Miločer open for at least eight months a year. For this summer, that period has been set at at least five months.
Villa Miločer is planned to open on May 21st, for Independence Day, and Svetac to welcome guests on July 1st, unofficially told "Vijesti".
As stipulated in the agreement, Villa Miločer, the Aman SPA center in Miločer Park, as well as the Olive restaurant opposite the city hotel must be opened no later than 45 days from the signing of the document. The document sets a deadline of 75 days for the Sveti Stefan, East and West beaches, as well as the Great Miločer Beach (King's Beach) in front of Villa Miločer to be operational. The deadline for the opening of Sveti Stefan is 105 days from the signing of the agreement.
The agreement provides a temporary solution for the use of Queen's Beach, which is one of the key problems that led to the closure of the hotel complex in the summer of 2021, when locals broke the gate, dissatisfied because they were prevented from accessing the beach and passing through Miločerski Park.
“Adriatic Properties” and “Aman”, as allegedly stipulated in the agreement, were allowed to erect fences and close gates at both ends of the pedestrian path in Milocerk Park to prevent access to Queen’s Beach, but also to the path along the beach itself, which would be reserved for guests. It is stipulated that only hotel guests can swim on Queen’s Beach and walk in the park next to the spa center from 8 am to 21 pm. Public access is allowed after 21 pm.
The agreement also allows Stathis' company to install a gate and keep it closed on the pedestrian bridge leading to the island of Sveti Stefan.
Public access to the Saint is provided through twice-daily tourist tours. Local residents are allowed to perform religious ceremonies in the churches on the island.
The agreement is also allegedly intended to resolve the financial collapse in which the majority state-owned companies "Sveti Stefan Hotels" (owner of the city-hotel Sveti Stefan and Villa Miločer) and HTP "Miločer" (owner of the former hotel Kraljičina plaza and part of Miločer park, where, in addition to the new hotel, annexes with 66 apartments for the market are being built), found themselves.
Namely, by initiating arbitration proceedings, Statis' company has not paid rent for two years - the quarterly installment for HTP "Miločer" amounts to 87 thousand euros, and for the lease of Sveca 380 thousand euros. Both companies are in debt and in big trouble.
The agreement stipulates that "Adriatic Properties" will pay six quarterly installments to both companies, four for 2023 and two for 2024.
However, the company "Sveti Stefan Hotels" has had its amount reduced due to a final judgment issued by the Commercial Court recognizing the decision of the Court of Arbitration in London, which requires it to pay 620 thousand euros in procedural costs...
"Vijesti" recently announced that he is the most successful tennis player in history. Novak Đoković intends to invest money in companies that have leased the Montenegrin pearl for three decades.
Djokovic previously spoke with Spajic and told "Vijesti" that he was trying to help remove the padlock from the city hotel...
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