The controversial proposal from MK Group, submitted in late September 2025 to the Government of Montenegro and the Council for Privatisation and Capital Projects regarding the redevelopment of the Slovenska plaža tourist complex and Hotel Aleksandar in Budva, will not be decided upon in the immediate term, according to unofficial sources.
The initiative from MK Group — which holds a minority stake in the state-controlled HG Budvanska Rivijera hotel company — proposed a restructuring that would have granted it majority control over the most valuable property within the group, including demolition of parts of the existing resort and construction of a new residential-tourism neighbourhood on the highly prized coastal site.
According to political insiders, Prime Minister Milojko Spajić’s government has chosen not to take a position on the proposal at this time, electing instead to postpone any substantive decision until after the parliamentary elections scheduled for summer 2027. The delay reflects concerns that approving a plan with significant real-estate and development implications — particularly one involving changes to the ownership structure of a key tourist asset — could prove unpopular in a pre-election year.
Under the terms submitted, MK Group had envisioned a comprehensive redevelopment with a planned investment reportedly valued at about €700 million, transforming the existing hotel-and-resort footprint into an expanded mix of tourism, public, recreational and commercial facilities. The company has engaged prominent international architects and urban planning firms to shape its concept design, and company representatives have emphasised the intent to enhance Budva’s global tourism appeal.
However, the proposed transformation has attracted public debate and media scrutiny in Montenegro, with some commentators and local stakeholders expressing concern that the plan could shift the focus away from traditional hospitality assets toward increased residential and commercial development on one of the coast’s most valuable parcels.
With the government opting to defer action on MK Group’s submission, the future of the Slovenska plaža development — and the larger question of how Montenegro mobilises private capital for flagship tourism assets — is likely to be addressed only after the political landscape crystallises following the 2027 parliamentary elections.
