Once a hallmark of Montenegrin tourism, the Sveti Stefan city-hotel will likely remain closed for the fifth consecutive summer, as the government has not responded to the leaseholder’s offer for a partial settlement and arbitration suspension for over a month and a half, as reported by Vijesti.
The leaseholder of the Sveti Stefan-Miločer hotel complex, Adriatic Properties, owned by Greek businessman Petros Statis, along with its partner firms Aidway Investments Limited and Amanresorts Management, signed an agreement and sent it to the government for approval. However, there has been no response.
On April 8, Vijesti reached out to the Prime Minister’s Office, headed by Milojko Spajić, and the Ministry of Economic Development, led by Nik Gjeloshaj, but did not receive an answer by Saturday regarding any issues with finalizing the agreement.
The main hearing before the International Tribunal in London is scheduled for May 18, and arbitration meetings are expected to begin in London on May 2. It is noted that by May 2, both parties could notify the tribunal about the potential halt in the dispute.
Adriatic Properties and Aman are reportedly ready to open the resort, but, as sources explain, the government must give clear instructions to its legal team to request a suspension of the arbitration process. If this does not happen, the arbitration process will continue, meaning that the Sveti Stefan city-hotel and Villa Miločer will remain closed.
The plan was for Villa Miločer to open on May 21, Independence Day, and for Sveti Stefan to welcome guests on July 1. However, Aman has yet to open bookings for the upcoming summer due to the government’s silence.
Earlier, Vijesti reported, citing unofficial information, that the agreement, marked as confidential, envisioned the opening of Sveti Stefan and Villa Miločer this summer while suspending the arbitration process, allowing the conflicting parties to reach a compromise. No one has denied this information as of Saturday.
In addition to the government and the Ministry of Economic Development, the agreement must be signed by the management of state-owned companies Sveti Stefan Hotels, HTP Miločer, and HG Budvanska Rivijera. Approval is also required from the Municipality of Budva and the Public Enterprise Morsko Dobro.
The agreement stipulates that if signed, within one day, both the government’s companies and Statis’s companies would jointly submit a request to the London Tribunal for halting the arbitration process. During this suspension, the parties will seek a final settlement.
Upon signing, Statis’s company commits to keeping Sveti Stefan and Villa Miločer open for at least eight months annually, with this summer’s period set at a minimum of five months.
The agreement also specifies that Villa Miločer, the Aman SPA center in the Miločer Park, and the Olive restaurant opposite the city-hotel must open no later than 45 days after the agreement is signed. The Sveti Stefan beaches (East, West, and the King’s Beach) must be functional within 75 days, and the city-hotel must open within 105 days of signing.
A temporary solution for the use of Queen’s Beach, a major issue that led to the closure of the hotel complex in summer 2021 when locals protested due to restricted access, is also part of the agreement. The leaseholder is permitted to erect fences and gates at both ends of the pedestrian path in the Miločer Park to prevent public access to Queen’s Beach, which will be reserved for hotel guests from 8 AM to 9 PM, after which public access is allowed.
The agreement also allows for controlled public access to Sveti Stefan via guided tours, with local residents granted the right to perform religious ceremonies at the island’s churches.
Additionally, the agreement aims to resolve the financial collapse of state-owned companies Sveti Stefan Hotels and HTP Miločer, which have been in debt due to the ongoing arbitration, with Statis’s company having not paid rent for two years. The quarterly rent for HTP Miločer is 87,000 EUR, and for Sveti Stefan, it is 380,000 EUR.
According to the agreement, Adriatic Properties is to pay six quarterly installments to the state-owned companies, four for 2023 and two for the previous year. However, the amount for Sveti Stefan Hotels will be reduced based on a court ruling acknowledging the decision of the London Arbitration Court, which required a payment of 620,000 EUR for arbitration costs.
In other news, it was recently reported that Novak Djoković, the most successful tennis player in history, plans to invest in the companies that hold a long-term lease for Sveti Stefan. Djoković has discussed this possibility with Spajić, with the aim of reopening the city-hotel.
