Montenegro’s state-controlled hotel operator Budvanska rivijera has resumed preparations for the reconstruction and expansion of the Mogren hotel in Budva, following a period of delays, while its revenue increased by almost 16% to €24.65 million during the first nine months of 2026.
The company’s board approved a revised design brief for the project, providing the basis for updating technical documentation in line with Montenegro’s new construction legislation and contemporary hotel standards.
The redevelopment was initially scheduled to start in October 2024 but was postponed partly because of unresolved arrangements concerning the relocation of the Austrian consulate, which occupies part of the property. Before construction can begin, Budvanska rivijera must complete the main technical design, obtain a construction permit and select a contractor.
Located opposite Budva’s historic Old Town, Mogren is among the city’s best-known hotel properties. However, it has not operated as a conventional accommodation facility for several years, with restaurant operations representing its primary source of revenue. Previous redevelopment proposals envisaged upgrading the property to five-star standards, including renovated accommodation facilities, an indoor swimming pool, an additional floor of apartments and an outdoor swimming pool.
The investment is planned in two phases, although the company has not announced a revised construction budget or implementation schedule. Budvanska rivijera’s renewed preparations for Mogren come alongside improved financial results across its hospitality portfolio. The company generated €24.65 million in revenue between January and September 2026, an increase of €3.35 million, or approximately 15.7%, compared with the corresponding period of 2025.
Revenue from accommodation packages and related arrangements rose by approximately €2.88 million, representing annual growth of 17%. The hotel group expects to achieve 445,000 overnight stays in 2026, compared with 406,000 in 2025, equivalent to an increase of approximately 9.6%. Its portfolio includes major hospitality properties in Budva and Petrovac, among them Slovenska plaža, Aleksandar, Palas and Castellastva.
The company has also carried out substantial modernisation work across its existing properties. This includes the reconstruction of four accommodation blocks at Slovenska plaža, supported partly by €14 million in borrowing.
The Mogren project would add another redevelopment initiative to Budvanska rivijera’s efforts to modernise its hospitality assets and expand higher-value accommodation capacity in Montenegro’s coastal tourism market. A construction permit, project-specific financing package and contractor appointment have not been confirmed. The next stages include completing the revised technical design, resolving outstanding property-use arrangements and conducting the procurement process for construction works.
