Investment in the Tivat hotel is slow

The construction of the hotel and apartment complex "Tivat" in Seljanovo in Tivat is not proceeding at the pace expected by the Government of Montenegro when it included this project on the List of development projects in the field of tourism, i.e. real estate projects in which foreigners can acquire Montenegrin citizenship by purchasing an apartment.

The government included the project to build a five-star condo hotel "Tivat", which is being implemented by the Belgrade-based company "ALK Nekretnine" through its Montenegrin subsidiaries "ALK Montenegro" and "Sofir" doo Tivat, on these lists in October 2022, at the proposal of the then Ministry of Economic Development and Tourism.

According to the documentation submitted by the investor at the time, it was planned to build a new condo-hotel "Tivat" with annexes "A" and "B", category 5 stars, on a plot of land near the Adriatic Highway in Seljanovo, on the site where the old hotel "Tivat" stood for decades, which "ALK" has since demolished. With an investment of 22.779.405 euros, a new condo-hotel "Tivat" with annexes "A" and "B", category 5 stars, was built.

"The implementation of the hotel and apartment complex "Tivat" envisages that the facilities will have a total of 77 accommodation units, including 3 standard rooms, 4 premium rooms and 70 apartments of various types and sizes. The accommodation capacity is designed for 180 guests, which ensures a diverse offer. According to the business plan, 46 apartments will be offered to the market, each with its own garage or parking space," the Government announced at the time.

The construction of this facility, however, has been slow in recent years, as confirmed by the latest information adopted by the Government.

This information contains the first, second, third, fourth and fifth “Report on the findings of the factual situation prepared by the auditing company “Crowe MNE” doo Podgorica, in connection with the implementation of the project for the construction of the 5-star Hotel and Apartment Complex “Tivat” in Tivat according to the condo business model”. According to these reports, the investors “ALK Montenegro” and “Sofir” invested a total of just under seven million euros in the construction of the new complex with a total area of ​​15.854 square meters by the end of the fifth reporting period, on April 27 last year.

"Based on the analysis of the semi-annual reports of the independent controller and the planned investments according to the dynamic plan, it can be concluded that the actual investments were below the planned level. Taking into account all of the above, we conclude that the total investment in the project to build the hotel and apartment complex "Tivat", according to the condo business model, from its inclusion on the List of Development Projects on 27.10.2022, until the end of the fifth reporting period, i.e. 27.04.2025, amounts to 6.648.480,00 euros," the information states.

It is emphasized that on April 1 this year, representatives of the Ministry of Regional Investment Development and Cooperation with Non-Governmental Organizations "visited the location where the construction of the 5-star hotel and apartment complex "Tivat" is taking place in Tivat in order to get acquainted with the activities on the ground."

On that occasion, it was stated that "work is currently being carried out on key segments of the building, including the facade of Annex A, Annex B and the hotel area, water supply and sewage installations, high and low voltage electrical installations, plastering and mechanical works for interior plastering, and ceramic works on Annex B."

"The complete locksmithing has been installed and preparatory works for the exterior landscaping of the grounds have been completed. The selection of the most favorable bidders for thermal engineering, sanitary facilities and interior fittings is underway, while the contractor has been selected for the delivery and installation of a 2x100 kW transformer station, planned for placement in the hotel area and foreseen in the main project. According to the concluded contract, the hotel will operate under the international brand 'Radisson Blu'," the information stated.

The company "ALK Montenegro" has meanwhile announced that the construction of the entire complex in Seljanovo is expected to be completed by the end of next year.

The government included the project to build a five-star condo hotel "Tivat", which is being implemented by the Belgrade-based company "ALK Real Estate" through its Montenegrin subsidiaries "ALK Montenegro" and "Sofir" doo Tivat, on these lists in October 2022, at the proposal of the then Ministry of Economic Development and Tourism.