Luxury hotel projects in Kolašin are approaching completion, but delays in public infrastructure delivery are preventing several properties from completing technical testing, obtaining operating approvals and welcoming guests.
The issue affects multiple high-value tourism developments in the Municipality of Kolašin, including nine luxury hotels developed under Montenegro’s former economic citizenship programme. Private investors have completed major construction works, branded residences, interior fit-outs and operational preparations, while key public systems including water supply, sewerage, electricity and roads remain unfinished.
Public Infrastructure Tenders Exceed €8.5 Million
On 10 July 2026, the Ministry of Public Works launched tenders for infrastructure projects at Kolašin’s mountain centres.
The procurement package includes:
- An artificial snowmaking system at Kolašin 1600
- The main wastewater collector for Kolašin 1450
- Sanitary and stormwater networks at Kolašin 1600
The combined estimated value exceeds €8.5 million excluding VAT.
Bids are due by 14 August, but completion before the end of 2026 remains challenging due to tender evaluation, contractor selection, design preparation, permits, mobilisation and construction requirements. Potential delays could also arise from procurement challenges, unresolved land issues and adverse mountain weather conditions.
Hotels Ready for Testing Once Utilities Arrive
Hotel investors have indicated that several properties could begin receiving guests within months after obtaining permanent utility connections.
The remaining work is no longer focused primarily on buildings but on testing and commissioning operational systems, including:
- Drinking water supply
- Wastewater disposal
- Fire protection
- Heating and cooling systems
- Kitchens and laundry facilities
- Lifts
- Pools and wellness areas
- Backup power systems
- Building-management controls
Temporary construction solutions such as generators and water tanks cannot replace permanent infrastructure required for full operational testing under guest conditions.
Radisson Blu Project Depends on External Connections
The delayed Radisson Blu Hotel & Resort Kolašin, developed by Zetagradnja at Kolašin 1450, illustrates the infrastructure dependency. Investor Blagota Radović estimates that approximately 90% of construction work has been completed, but the opening date depends on delivery of:
- Water connections
- Sewerage infrastructure
- Electricity supply
- Completed access roads
The developer estimates that up to 90 days would be required after receiving the connections to test, synchronise and commission installed systems before technical inspection and procedures for obtaining an operating permit. Development at the relevant Kolašin 1450 location began in 2020. The site includes the Radisson property and another six planned tourist facilities, meaning the infrastructure delay affects a wider resort area.
Delays Create Contractual and Financial Exposure
The infrastructure gap is creating potential contractual risks for developers and investors. The hotel has an international brand and management structure, while recruitment and pre-opening activities are being prepared. Investors who purchased units through the economic citizenship programme have reportedly indicated possible use of compensation provisions related to missed deadlines.
Potential financial exposure includes:
- Lost operating income
- Additional contractor and security expenses
- Extended insurance costs
- Brand-related fees
- Claims from unit buyers
The outcome of any disputes would depend on individual agreements, force-majeure provisions, contractual deadlines and obligations assumed by developers and public institutions.
Montis by Splendid Aligns Opening With Permanent Infrastructure
The Montis by Splendid project in the Breza area is following a phased commissioning approach aligned with delivery of the access road and water and sewerage networks. Investors have chosen not to rely on isolated temporary solutions and are instead waiting for permanent infrastructure capable of supporting the hotel, surrounding developments and local residents.
For an upscale tourism property, infrastructure must support more than construction access. Roads must meet requirements for safety, snow clearance, coaches and emergency vehicles, while wastewater solutions must handle future increases in rooms, residences, restaurants and seasonal employment.
Breza Road and Utility Projects Form Wider Investment Programme
Kolašin’s public infrastructure programme includes a new road through Breza valued at approximately €5 million.
The project is divided into three phases:
- The first and third phases have construction permits and are being implemented
- The second phase is awaiting a permit
The municipality is also preparing:
- The city collector, supported largely through European development-bank financing
- Water-supply tenders for the town and ski centres
- The road toward Bjelasica
- A promenade from Lug to Breza
- A mountain garage
- Water reservoirs for artificial snowmaking
The identified snowmaking, sewerage and Breza road projects represent at least €13.5 million of public infrastructure investment excluding VAT, without including wider water networks, wastewater treatment, electricity upgrades and additional road works.
Infrastructure Sequencing Remains a Challenge
Private developments advanced faster because planning approvals, economic citizenship programme eligibility and property demand encouraged construction.
Public infrastructure progressed through longer processes involving:
- Budget procedures
- Design preparation
- Expropriation
- Public procurement
- Institutional coordination
A functioning mountain destination requires coordinated delivery of hotels, ski infrastructure, utilities, roads and services. Kolašin’s infrastructure responsibilities are divided among multiple institutions, including the municipality, Ministry of Public Works, Ministry of Tourism, Ski Resorts of Montenegro, electricity companies, water utilities and private developers.
Land and Documentation Issues Added Delays
Municipal representatives have stated that infrastructure shortages are not the only reason for delayed hotel openings.
Additional delays have involved:
- Incomplete design documentation
- Land ownership issues
- Expropriation procedures
- Claims related to the road between Kolašin and Bjelasica
A section of the road remains affected by a dispute involving parcels included in the bankruptcy estate of the former Bjelasica ski-centre company. Although reconstruction funding had previously been identified, the legal status of the land must be resolved before uninterrupted works can continue. The water supply and snowmaking projects also faced opposition from some residents and unresolved expropriation issues. Municipal officials said parts of the documentation and property procedures have since been resolved or are moving toward resolution.
Snowmaking Infrastructure Key for Ski Operations
Artificial snowmaking is considered a core operational element for a modern ski destination. Kolašin recorded more than 100 ski days during the 2025–2026 season, demonstrating demand, but lower slopes remain exposed to warmer conditions and uneven snowfall.
Without snowmaking capacity, operators cannot provide reliable season guarantees for:
- Tour operators
- Hotel brands
- Guests booking in advance
A complete snowmaking system requires:
- Snow guns
- Reservoirs
- Water rights
- Pumps
- Electricity supply
- Buried pipelines
- Control systems
- Operating procedures
Kolašin 1600 recorded approximately 10,000 ski passes and 2,000 panoramic-ride tickets during the earlier part of the 2025–2026 season.
Tourism Model Requires Year-Round Activity
The future hotel cluster depends on expanding beyond winter skiing.
Potential year-round activities include:
- Hiking
- Cycling
- Wellness tourism
- Conferences
- Sports preparation
- Nature-based tourism
Mountain hotels face significant fixed costs related to staffing, heating, maintenance, wellness facilities and brand standards, making annual occupancy important. An upscale mountain hotel with 100–150 rooms, an average daily rate of €150–250 and stabilised occupancy of 50–65% could generate approximately €4 million–€9 million in annual room revenue before food, beverage, wellness and event income. A delayed opening could result in several million euros of lost gross revenue annually and postpone the operating history required for refinancing, valuation support and unit-owner confidence.
Financing Costs Increase During Delayed Openings
Debt continues to accumulate while completed hotels remain closed.
A €40 million project financed with 60% debt at an effective interest rate of 6–8% could generate approximately €1.4 million–€1.9 million in annual interest costs on the senior facility alone.
Additional expenses include:
- Security
- Maintenance
- Heating
- Insurance
- Management mobilisation
- Staff retention
A 12–18 month delay could reduce equity IRR by approximately 2–5 percentage points, depending on leverage, pre-sales, compensation obligations and repayment timing.
International Brands Require Permanent Operating Standards
International hotel brands require compliance with detailed operational standards before opening.
Requirements include:
- Life-safety systems
- Fire protection
- Water quality
- Backup power
- Accessibility
- Room systems
- Kitchens
- Public areas
Repeated postponements may result in additional technical reviews, pre-opening expenses and amendments to management or franchise agreements.
Delays Affect Wider Local Economy
Completed luxury hotels could employ between 100 and 250 people, depending on size and service model.
The wider economic impact includes:
- Local suppliers
- Transport companies
- Maintenance providers
- Guides
- Retail businesses
The municipality also loses potential revenue from:
- Property-related income
- Tourist taxes
- Local fees
- Visitor consumption
Apartment owners are unable to use or rent units as planned, while restaurants and ski operators receive fewer customers.
Kolašin Investment Growth Outpaced Local Networks
Kolašin’s investment attractiveness increased after the motorway connection reduced travel time from Podgorica. Improved accessibility increased land values and accelerated hotel and residential development, but local infrastructure expansion did not advance at the same pace.
The result is a shift in the main constraint from intercity access to utilities and last-mile infrastructure.
The experience has highlighted the need for future tourism zones to coordinate:
- Water supply
- Sewerage
- Wastewater treatment
- Electricity
- Roads
- Snowmaking
- Emergency services
Future development agreements would need clearer allocation of infrastructure responsibilities, financing sources, procurement schedules and completion milestones. The current tender cycle for snowmaking and sewerage infrastructure represents more than €8.5 million in public works and could determine whether completed private tourism projects begin operating or remain inactive. Kolašin has attracted international hotel brands, developers and investors, but the completion of public infrastructure will determine when those investments begin generating tourism activity and economic returns.
