The Government of Montenegro has decided to delay its decision regarding MK Group’s proposal for the redevelopment of the Slovenska Plaža tourist complex and Hotel Aleksandar in Budva until after the parliamentary elections scheduled for summer 2027. This information comes from unofficial sources, indicating that the government is taking a cautious approach to a proposal that has generated considerable controversy.
MK Group, which holds a minority interest in the state-owned HG Budvanska Rivijera hotel company, submitted its redevelopment initiative in late September 2025. The plan involves significant restructuring that would provide MK Group with majority control over valuable assets, including plans for demolishing parts of the existing resort and constructing a new residential-tourism neighborhood on this prime coastal site.
Political insiders suggest that Prime Minister Milojko Spajić’s administration has opted not to take a definitive stance on the proposal at present. This decision reflects apprehensions that endorsing a project with substantial real estate and development ramifications—especially one affecting ownership of a key tourism asset—could be politically detrimental in an election year.
The redevelopment plan proposed by MK Group includes an estimated investment of approximately €700 million. The project aims to transform the current hotel-and-resort area into a diverse mix of tourism, public, recreational, and commercial facilities. To support this vision, MK Group has engaged leading international architects and urban planning firms to develop the design concept, emphasizing an intention to boost Budva’s appeal as a global tourism destination.
Despite these aspirations, the proposal has sparked public debate and media attention within Montenegro. Concerns have been raised by various commentators and local stakeholders about the potential shift in focus from traditional hospitality assets to increased residential and commercial development on one of the coast’s most valuable parcels.
With the government’s decision on MK Group’s proposal deferred, discussions surrounding the Slovenska Plaža development and Montenegro’s strategy for attracting private investment in key tourism assets are likely to resume only after the political situation stabilizes following the 2027 parliamentary elections.
