The Privatisation Monitoring Commission in Montenegro has requested details from the Special State Prosecutor’s Office, the Privatisation Council, the Ministry of Spatial Planning, and the state property-rights protector regarding the management of assets belonging to Vektra Boka, particularly focusing on Hotel Igalo.
This request includes asking the property rights protector to consider a temporary prohibition on any further disposal or encumbrance of Vektra Boka’s assets. It is important to note that this remains a request and not an established court order. Allegations made by the Commission concerning creditor payments and breaches of the original privatisation agreement have yet to be confirmed by a final judicial ruling.
Vektra Montenegro acquired 59 percent of HTP Boka for €22.2 million in 2007, with a commitment to invest at least €50 million into the tourism sector in Herceg Novi. However, instead of the promised revitalization, the company has faced increased debt, asset sales, and deterioration of several hotel properties.
In February 2025, Hotel Igalo was sold to Herc Gradnja for €11.225 million, which is approximately 40 percent lower than the initial auction starting price of €18.85 million. While the parliamentary inquiry does not automatically annul this transaction, it raises legal complexities and risks regarding the timeline for redevelopment of the hotel and any remaining assets held by Vektra Boka.
For potential investors, this situation highlights ongoing challenges related to unresolved privatisation obligations, restitution claims, and creditor hierarchies. While attractive coastal locations still hold significant development potential, realizing that value may be hindered until issues surrounding property titles, payment priorities, and state intervention rights are clarified.
