Montenegro’s Parliamentary Privatisation Monitoring Commission has requested documentation and information from several state institutions regarding the disposal of assets owned by Vektra Boka, with particular focus on the sale and future redevelopment of Hotel Igalo. The Commission requested information from the Special State Prosecutor’s Office, the Privatisation Council, the Ministry of Spatial Planning and the state property-rights protector as part of its review of the company’s asset transactions.
Commission seeks review of asset disposals
The parliamentary body has asked the property-rights protector to consider initiating a request for a temporary prohibition on further disposal or encumbrance of Vektra Boka assets. Such a measure remains a request and does not represent an existing court decision. The Commission’s claims related to creditor payments and possible breaches of the original privatisation agreement have also not been confirmed through a final judicial ruling.
Privatisation commitments and asset deterioration
In 2007, Vektra Montenegro acquired 59% of HTP Boka for €22.2 million. As part of the transaction, the company committed to investing at least €50 million into the tourism portfolio in Herceg Novi. The planned redevelopment was followed by the accumulation of debt, asset sales and deterioration of several hotel properties.
Hotel Igalo sale under parliamentary review
Hotel Igalo was sold to Herc Gradnja in February 2025 for €11.225 million. The sale price was approximately 40% lower than the €18.85 million starting value established for the first auction.
The parliamentary review does not automatically invalidate the transaction, but it introduces additional legal and scheduling considerations for the hotel’s redevelopment and the management of remaining Vektra Boka assets.
Investors assess unresolved ownership and obligations
The case highlights issues connected with unresolved privatisation commitments, restitution claims and creditor priorities in relation to coastal property assets. Properties in attractive coastal locations continue to hold development potential, but financing and investment decisions depend on greater clarity regarding ownership status, payment priorities and the state’s ability to intervene in asset-related matters.
