Adriatic Properties has announced that it will recommence construction of the Janu-Kraljičina plaža hotel complex in Miločer on October 1, marking the revival of a significant coastal tourism project that had been on hold for five years. This decision follows a settlement with the Montenegrin government, allowing work to continue under the existing building permit.
The construction had been suspended due to a broader dispute involving the Sveti Stefan resort, particularly concerning beach access and the contractual dynamics between the investor and the state. The planned development includes 126 accommodation units, which consist of 63 hotel rooms and 63 apartments, offering a total capacity of 262 beds. Additionally, the project will feature 137 underground parking spaces.
Adriatic Properties clarified that the apartments will operate within the hotel model rather than being sold as separate residential units, ensuring they remain part of the overall hospitality offering. The complex is set to function under the Janu brand, associated with Aman.
Upon completion, this project is expected to expand the accommodation capacity of the Sveti Stefan resort from 58 to 184 rooms and units, extending beyond the historic Sveti Stefan island and Villa Miločer. The resort had reopened earlier this year after the resolution of disputes that led to its prolonged closure.
The resumption of construction represents a critical phase in Adriatic Properties’ investment strategy; however, no updated figures regarding total investment or completion timelines have been disclosed. The site is situated in a coastal region noted for its environmental and cultural significance, suggesting that construction will continue to face scrutiny concerning density, public access, and landscape protection.
Adriatic Properties has committed to adhering to its existing permit and approved development plans. The classification and operation of the apartments as part of the hotel inventory will become clearer as construction progresses. The five-year delay may have impacted various factors such as costs, procurement strategies, financing assumptions, and overall project timelines, although specific details have not been provided by the company.
The construction sector in Montenegro is currently experiencing demand driven by tourism, residential projects, and public infrastructure, which could affect costs and resource availability. While the restart of this project may influence investor perceptions regarding Montenegro, its actual impact remains uncertain until further developments occur.
The settlement reached with the government is perceived as part of Montenegro’s ongoing efforts to address longstanding tourism-related disputes; however, it is too early to determine any direct implications for EU accession or future foreign investment flows.
This project aims to enhance luxury accommodation options in the Budva-Sveti Stefan area and may stimulate demand for ancillary services such as dining, transportation, wellness facilities, and retail. The economic impact will largely depend on successful completion, operational performance, occupancy rates, and whether the resort can attract visitors beyond peak summer months.
Luxury establishments tend to draw higher-spending tourists and may be less reliant on seasonal demand compared to other types of lodging. Nevertheless, it remains unclear if the Janu complex will effectively extend Montenegro’s tourism season or increase overall visitor spending until it becomes operational and data on performance are available.
The first critical milestone for this project is set for October 1, when construction is scheduled to resume. A pivotal test will be whether the project can be completed according to existing approvals and integrated into the broader Sveti Stefan resort framework as outlined by Adriatic Properties.
