Sveti Stefan may welcome guests again as early as 2026 — the authorities are close to an agreement with the tenant that will end a years-long conflict, change the management of HTP Miločer, and open the way for the revival of this iconic resort.
How the conflict began
As a reminder, the conflict over Sveti Stefan flared up in 2021 after a dispute over access to the island and the adjacent beaches. Local residents and the authorities insisted on preserving the right of free passage, while the tenant demanded greater privacy for guests of the luxury resort. This standoff escalated into a series of court proceedings and international arbitration in London, with mutual claims amounting to hundreds of millions of euros. As a result, the complex was closed, and one of the symbols of Montenegrin tourism fell into disrepair for years. The new compromise envisages dropping the lawsuits, extending the lease agreements, and gradually restoring the resort’s operations while taking the local community’s interests into account.
New composition of the HTP Miločer Board of Directors
At a recent meeting, the government approved a new composition of the Board of Directors of the hotel and tourism company Miločer. It includes Nikola Obradović, Predrag Vlahović, and Danica Orlović.
Obradović is a certified manager, Vlahović is a certified history and geography teacher, and Orlović is a certified tourism specialist. Maria Huter, Vladimir Lekić, and Tijana Đurašević were previously removed from their positions. Their dismissal followed the removal of Board Chair Tijana Šljukić, which, according to the government’s explanation, automatically created the conditions for a complete renewal of the governing body.
Sveti Stefan: a step toward agreement and a possible opening
In parallel with the personnel changes, the authorities have come closer to an agreement with the tenant of the Sveti Stefan complex — the company Adriatic Properties and its partners. According to sources, the agreement could be signed by the end of the year, which would open the way for the resort to resume operations after five years of inactivity.
A key point remains the tenant’s obligation to prepare the Aman Sveti Stefan complex for reopening no later than May 2026. In return, the state undertakes to speed up the adoption of urban planning documents and resolve the status of temporary structures necessary for the hotel’s operation.
The draft agreement also provides for:
- an extension of the lease term by four years — until 2054;
- the withdrawal of all mutual claims in the international arbitration in London;
- individual coverage of arbitration costs with partial compensation from Adriatic Properties.
Public access and monitoring of obligations
Special attention has been paid to access to the island, beaches, and pedestrian routes. The island will mostly retain its status as a zone for hotel guests, but organized visits at certain hours will be allowed. The bridge will remain public, but with the possibility of temporary restrictions on passage to preserve privacy.
A combined model of beach use is being introduced: part will be available for a fee, and part free of charge for local residents. At the same time, the fundamental difference from 2021 is preserved — the right of passage is not officially abolished, but merely regulated.
Also read: a guide to beach holidays in Montenegro
Novak Djokovic’s new role
It is expected that a special advisory body, Bankada, will be created to monitor the fulfillment of obligations to the local population and the promotion of Sveti Stefan’s tourism potential. According to sources, Novak Djokovic may head this body, which would give the process additional authority and international recognition.
The council will oversee issues of local employment, the use of local producers’ products, educational programs, and tourism initiatives, and will report annually to the government.
Tensions with the local community
At the same time, a representative of the Sveti Stefan local community council, Blažo Radenović, accused the authorities of excluding residents from the negotiation process and demanded an urgent meeting with the prime minister and the relevant ministers. He did not rule out filing a complaint with the prosecutor’s office and stated suspicions of corruption at the highest level if dialogue is not established.
Financial terms and next steps
The amount of the guaranteed rent for HTP Miločer has been preliminarily set at 350 thousand euros including VAT, but the final figures and the repayment schedule for the debt exceeding four million euros are to be clarified in the coming days.
The end of a years-long conflict?
If the agreement is signed, it could put an end to the protracted standoff that has led to the decline of what was once a prestigious resort over the years. The goal of the parties is to replace arbitration disputes with operating hotels and restore Sveti Stefan’s status as a symbol of Montenegrin tourism.
As sources note, the real test will begin when the agreements move beyond documents and become reality — on the bridge, the beaches, and the streets of Sveti Stefan.