Hotel Plaža in Herceg Novi, Montenegro, is due to be fully refurbished and back in operation by April 2028 at the latest, according to its new owner, Žarko Rakčević, who owns Vile Oliva. The company is also trying to prepare parts of the hotel, including blocks B and C, to receive guests before the full refurbishment is complete, depending on how the work progresses.
Preparations cover the building’s waterproofing, facade and interior. Water is leaking through the existing waterproofing, making it one of the biggest challenges for the project. The company is carefully assessing how to address the inherited problem as efficiently and quickly as possible, while it is in the final stage of collecting offers to resolve issues with the structural facade.
The refurbishment is intended to improve energy efficiency while taking economic and environmental considerations into account. Clearing the interior is also a substantial part of the work: the hotel contains large amounts of worn-out equipment, including old mattresses and doors, and many rooms are completely unusable.
The property has been closed for five years and lost its former appearance during a prolonged period without maintenance. Room sizes are not to change. The rooms and bathrooms are relatively small, but the hotel must meet international criteria and Montenegro’s technical requirements for classification as a four-star hotel.
Vile Oliva is seeking to open some sections before the entire refurbishment is finished, but whether that is possible will depend on progress. Rakčević described the work as an adaptation, not a reconstruction, and said an adaptation only needs to be reported. He hopes bureaucracy will not slow the project. An earlier opening for blocks B and C remains an aim rather than a confirmed date.
Hotel park cleared
Alongside the preparations, a separate effort has addressed the neglected hotel park. After discussions with Herceg Novi Municipality President Stevan Katić and his associates, an arrangement was made for assistance with improving the grounds. Employees across Vile Oliva’s system cleared the park with support from municipal services, with the company paying for the work on commercial terms.
Rakčević said rare plants, previously covered by thorny growth and vegetation that had not been maintained for decades, were visible again. He described Hotel Plaža as “a jewel for Herceg Novi and Montenegro”. The company continues to assess whether parts of the hotel can receive guests before the full reopening deadline, with the timing dependent on the progress of the work.
