The Montenegrin government has issued an ultimatum to Adriatic Properties, owned by Petros Stathis, requiring the company to reopen the Sveti Stefan resort within one month or face termination of their lease agreements. The government has formally notified Adriatic Properties of this deadline, which includes reopening Sveti Stefan Hotel, Villa Miločer and Kraljičina Plaža.
The renowned resort has remained closed since the summer of 2021 due to unresolved issues between the state and the lessee regarding the operation of Kraljičina Plaža and the pathway linking the beach to the spa center in Miločer Park.
Adriatic Properties is now required to reopen Sveti Stefan Hotel and Villa Miločer, which have been closed for the past four summers, and to clear an outstanding lease debt of approximately two million euros. Failure to meet these conditions will result in the termination of the lease agreements, according to government sources.
Deputy Prime Minister and Minister of Economic Development, Nik Đeljošaj, has been tasked with issuing the notice to Adriatic Properties, and this is expected to be done within the week, pending the finalization of the meeting’s conclusions.
The lease agreement, approved on January 15, 2007, was for a 30-year term for Sveti Stefan Hotel, Villa Miločer, and Kraljičina Plaža. Initially, the annual rent was set at 1.6 million euros, with provisions for revision every three years. The lessee was obligated to keep the hotels operational for at least 11 months annually and invest 50 million euros in renovating Sveti Stefan.
In 2015, an annex extended the lease for Sveti Stefan by an additional 12 years, reducing the annual rent to 1.1 million euros. The annex also extended the lease for Kraljičina Plaža from 30 to 90 years and permitted the construction of a condominium hotel, with half of the apartments designated for sale and the other half for hotel use.
Payments for the lease of Sveti Stefan Hotel and Villa Miločer have not been received by the state for an entire year, accumulating a debt of over 1.5 million euros. The quarterly rent, excluding VAT, is 388,000 euros.
Adriatic Properties had expressed readiness to reopen the hotel this season, provided the government suspended arbitration payments and ensured security and privacy for hotel guests. Under this arrangement, Kraljičina Plaža would be accessible only to hotel guests during certain hours and open to the public outside those hours, reflecting the previous or last year’s usage conditions.
