Vila Oliva, a Montenegrin tourism enterprise, has finalized the acquisition of Hotel Plaža located in Herceg Novi for a total of €20.4 million. This purchase enhances Vila Oliva’s coastal portfolio, which now includes over 3,500 beds across the region.
The sale occurred through an enforcement process involving Vektra Boka, with the hotel’s assessed value estimated at approximately €30.7 million. Initially, the starting price for the public auction was set around €24 million, but creditors and debtors agreed to accept a lower price to facilitate the settlement of outstanding debts.
Vektra Boka is reported to owe around €12 million to various creditors, including local employees, the municipality of Herceg Novi, the water utility service, the Tax Administration, and Elektroprivreda Crne Gore. Proceeds from the sale are expected to cover recognized claims and overdue employment contributions for workers.
Žarko Rakčević, who controls Vila Oliva, has indicated plans to invest an additional €15–20 million into renovating Hotel Plaža. The company aims to maintain the hotel’s current structure rather than undertake a complete redevelopment, with restoration efforts projected to be completed by 2028.
The total financial commitment related to this acquisition could reach between €35.4–40.4 million, factoring in both the purchase price and renovation costs. This move also solidifies Vila Oliva’s presence in Herceg Novi, where it is already a notable minority stakeholder in the Dr Simo Milošević Institute in Igalo.
However, legal and shareholder conflicts involving Vektra Boka remain unresolved. Minority shareholder Danilo Matijašević has ongoing claims valued at approximately €10 million, and there are concerns regarding the sale’s conduct that may complicate matters further. Despite these issues, Vila Oliva anticipates fulfilling the remaining payment within a designated 30-day period.
The key challenge for Herceg Novi will be whether Vila Oliva can successfully reopen Hotel Plaža on time and reposition it within a competitive market that increasingly features renovated upscale accommodations and international resort brands.
