The Royal Capital of Cetinje has selected the bid from Talija Company, based in Herceg Novi, as the most favorable offer for a public-private partnership, with a project valued at 13.78 million euros. This partnership involves the design, financing, reconstruction and management of the former Lokanda Hotel, as well as the construction of an underground parking garage and the redevelopment of the Artist’s Square.
The Lokanda Hotel, built in 1864, was a central point of Montenegro’s cultural and historical heritage. However, it suffered significant damage during the 1979 earthquake and was demolished. Today, the site of Lokanda in Cetinje is nothing more than an excavated plot, with plans for a new hotel to be constructed on the same location in the city center, at the end of Njegoševa Street, adjacent to the Artist’s Square.
According to documents on the Montenegrin Electronic Public Procurement Website (CePN), the tender for this project was issued on October 30 of last year and closed on December 16. The estimated value of the project was 13.78 million euros, and only Talija Company submitted a bid, which was subsequently awarded the contract.
Talija Company was founded in 2008 in Herceg Novi and specializes in trade and services. According to the Central Register of Business Entities, the company’s founder and CEO is Nikola Milić, and its authorized representative is Vukić Milić.
Through this project, Cetinje aims to enhance its cultural and historical significance while also boosting its tourism and accommodation capacity, creating conditions for new job opportunities. The project includes the construction of a 48-bed hotel and an underground parking facility with 130 spaces.
The contract’s execution period is set for 30 years, starting from the completion of the preparation phase. The preparation phase is set to last 30 months and includes the development of project and technical documentation, which must be completed within six months of the contract’s signing, followed by construction work lasting no longer than 24 months after the completion of the documentation. According to the site development plan, the total area of 2,161 square meters will be used to construct or reconstruct the building for tourism purposes—a four-star hotel with 48 beds, named Grand Hotel Lokanda.
The original Lokanda is also classified as a cultural heritage property based on a decision from 1960 and is part of the historical core of Cetinje, which holds the same status. Therefore, any work on the buildings within this area is subject to the provisions of the Law on the Protection of Cultural Heritage. The Directorate for the Protection of Cultural Heritage has already issued conservation conditions that form the basis for the design documentation for the restoration.
Additionally, the Secretariat for Spatial Planning and Environmental Protection issued urban-technical conditions for this project in early 2023.
