The Montenegrin government has decided to delay its decision regarding MK Group’s redevelopment proposal for the Slovenska Plaža tourist complex and Hotel Aleksandar in Budva until after the parliamentary elections scheduled for summer 2027. This move comes amid concerns surrounding the potential political repercussions of approving a significant real estate project in an election year.
MK Group submitted its proposal in late September 2025, seeking to restructure its minority stake in the state-controlled HG Budvanska Rivijera hotel company. The plan includes plans for a €700 million investment aimed at transforming the existing resort into a mixed-use development featuring tourism, public, recreational, and commercial facilities. The initiative also involves demolishing parts of the current resort to make way for new construction.
Political insiders report that Prime Minister Milojko Spajić’s administration has opted for a cautious approach, choosing not to engage with the proposal at this time. The decision reflects apprehension that endorsing such a plan, which could alter the ownership structure of a key tourist asset, may not be well-received by voters ahead of the upcoming elections.
Despite the ambitious vision presented by MK Group, which has enlisted prominent international architects and urban planners for the project, the proposal has sparked considerable public debate. Critics have raised concerns that the shift towards increased residential and commercial development could detract from Montenegro’s traditional hospitality assets, particularly in a region known for its tourism appeal.
The postponement of action on MK Group’s submission raises important questions about how Montenegro will attract private capital for its flagship tourism projects. The future of the Slovenska Plaža development will likely remain uncertain until after the political landscape stabilizes post-2027 elections.
