By 2025, 13 million euros will be invested in the Mediteran hotel in Ulcinj, asstatedin the Agreement on the Regulation of Relations between the government and the buyer of this property, Bećović Management Group, the American businessman fromUlcinj, Isa Bećović.
In addition to the amount being lower than originally announced, the buyer is not required to provide a bank guarantee. Thus, the practice of simplifying Montenegro’s tourism potential continues.
This is a continuation of the long-awaited story of the old Mediteran hotel in an extremely attractive location above Mala Plaža in the charming town of Ulcinj. The hotel overlooks the Old Town — the medieval fortified city and historical core of modern-day Ulcinj. Surrounded by massive fortress walls, the Old Town stretches along a high rocky cape washed on three sides by the Adriatic Sea. In the eastern part of the city are the Kalaja Castle and the Balšić Tower.
The history of the purchase of the Mediteran hotel
An international tender for the sale of the hotel was announced in 2004 by the Ulcinjska Rivijera Hotel and Tourism Company, which was then in bankruptcy proceedings. In accordance with this procedure, a contract was signed in April 2005 with Bećović’s management company, and in 2006 amendments were made to it with two annexes.
According to available information, Bećović paid 940,000 euros for Mediteran on time. He acquired ownership rights to 17,702 square meters of land with 11 buildings belonging to the hotel.
However, almost everything remained in that state until 2017, when renovations were carried out and the hotel was categorized as a three-star property. The reason was a delay in adopting the project documentation, which only came into force in March 2018.
However, the previous government decided in May last year to terminate the contract with Bećović’s company, but this did not officially happen. Thus, the new documents state that the current government and the buyer of Mediteran agree that “since the signing of the Agreement until today, social circumstances have changed significantly, which has partly affected the fact that neither party has been able to fulfill its contractual obligations.” So the situation has practically returned to the beginning.