Montenegrin hospitality company Vile Oliva has completed the €20.4 million acquisition of Hotel Plaža in Herceg Novi, with plans to invest a further €20 million in refurbishment to bring the property up to four-star standards. The company completed the transaction by transferring approximately €17.33 million, following an earlier deposit of around €3 million.
The planned refurbishment would bring the combined value of the acquisition and intended renovation to more than €40 million, although the additional investment has not yet been completed. The transaction also has financial implications for creditors of Vektra Boka, the hotel’s former owner. Approximately €12 million of the sale proceeds is expected to be allocated to creditor claims, including around €4.5 million owed to Crnogorska komercijalna banka.
Municipal authorities in Herceg Novi have also sought the settlement of outstanding local obligations associated with Vektra Boka. The acquisition transfers control of an established hotel property to Vile Oliva in one of Montenegro’s major coastal tourism markets. Herceg Novi has generally attracted less large-scale hotel investment than Tivat and parts of Budva, making the planned redevelopment relevant to the municipality’s accommodation capacity. The proposed €20 million upgrade could involve construction work, equipment procurement and additional hotel employment, while expanding the availability of higher-category accommodation in Herceg Novi.
For creditors, the completed property sale provides cash that is expected to cover part of Vektra Boka’s outstanding liabilities. The next stage will depend on the implementation of the planned refurbishment, which, if carried out in full, would make Hotel Plaža one of the larger individual tourism reinvestment projects planned in Herceg Novi.
