Settlement proposal between Montenegro and Adriatic properties: rent increase, Sv. Stefan to be open by June

The lease is planned to be extended for five years. It has also been determined that there is no additional construction in Miločerski Park, beyond that foreseen by the building permit and within the existing dimensions, the Government concludes.

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Government Building of Montenegro (Illustration), Photo: Shutterstock
Government Building of Montenegro (Illustration), Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The Government of Montenegro announced that at today's session they will receive a Proposal for the terms of settlement in the arbitration being conducted before the international court in London between Montenegro and the company Adriatic Properties, which, as they said, is the final step towards the reopening of the Sveti Stefan city-hotel.

"With this move, the Government, led by Prime Minister Milojko Spajić, eliminates the risk of paying potential damages in the amount of over 100 million euros, and the new proposed solution increases the amount of income, or rent, received by the companies HTP Miločer and Sveti Stefan hotels," the statement said.

It is added that the difference of 500 thousand euros in the calculated rent for the Sveti Stefan hotels will be immediately paid to that company, and a novelty and very important item for all citizens of Montenegro is that the state will have an annual share in the profit in the amount of 10 percent under the proposed solution.

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According to the statement, the lease is planned to be extended for five years - the length of time the complex has not been in operation, and the Adriatic Properties company is obliged to open the hotel no later than June 2026.

It was also determined that there is no additional construction in Miločerski Park, beyond that envisaged by the building permit and within the existing dimensions, the Government concluded.

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