The Hotel Plaža complex in Herceg Novi is scheduled for a forced sale with a first-auction minimum price of about €24.6 million, as creditors pursue recovery from former owner Vektra Boka. The property has been valued at approximately €30.74 million, with the first public auction scheduled for Sept. 14. Under enforcement rules, bidding can begin at 80% of the appraised value. If the property remains unsold, a second auction could reduce the minimum price to about 50% of the valuation, or approximately €15.4 million.
Creditors include former employees, the Municipality of Herceg Novi, the local water company and other claimants, while CKB holds secured claims against Vektra Boka. The property’s coastal location could attract tourism investors, although any buyer would need to assess renovation costs, planning permissions, redevelopment options and outstanding legal issues.
The effective investment cost could exceed the winning bid if substantial capital expenditure is required. The difference between the two potential auction thresholds is therefore significant, with €24.6 million remaining close to the current valuation and €15.4 million representing a substantially larger discount. Hotel Plaža is part of a wider group of former tourism properties in Montenegro that have remained underused, financially distressed or affected by ownership disputes.
The property could add hotel capacity, employment and local tourism spending if returned to active operation. Its investment potential will also depend on its ability to compete with newer tourism developments on the Montenegrin coast.
Montenegro has attracted significant hospitality and branded-residence investment, particularly around Tivat and the Bay of Kotor. Projects including Porto Montenegro, Luštica Bay and Portonovi have raised development standards and increased competition for older hotel properties. Herceg Novi has participated in that investment cycle, while parts of its existing hotel stock still require modernisation. Hotel Plaža offers an established coastal location compared with a greenfield development opportunity. The creditor structure remains important to the transaction. Former employees and public-sector claimants have sought repayment from Vektra Boka for years, while secured banking claims mean proceeds from a sale would be distributed according to creditor priority.
A sale at a substantial discount could therefore affect recoveries for unsecured creditors. The transaction also has implications for insolvency and enforcement, as resolving distressed assets can release capital tied up in non-performing businesses and return properties to productive use. The immediate test is whether bidders will meet the €24.6 million first-auction floor. If the property does not sell, the potential €15.4 million second-auction threshold could change the economics for prospective investors. For Herceg Novi, the outcome will determine whether Hotel Plaža moves from a distressed asset into new ownership and potentially returns to active tourism use.
