Montenegro’s parliamentary Privatisation Monitoring Commission has requested information from the Special State Prosecutor’s Office, the Privatisation Council, the Ministry of Spatial Planning and the state property-rights protector concerning the disposal of assets belonging to Vektra Boka, with particular attention to Hotel Igalo.
The Commission has asked the property protector to consider seeking a temporary prohibition on further disposal or encumbrance of company assets. This remains a request rather than an existing court order. The Commission’s allegations concerning creditor payments and breaches of the original privatisation agreement have also not been established by a final judicial finding.
Vektra Montenegro acquired 59 per cent of HTP Boka for €22.2 million in 2007, undertaking to invest at least €50 million in the Herceg Novi tourism portfolio. The promised regeneration was followed instead by debt accumulation, asset sales and deterioration of several hotel properties.
Hotel Igalo was sold to Herc Gradnja for €11.225 million in February 2025, approximately 40 per cent below the €18.85 million starting value used for the first auction. The parliamentary inquiry does not automatically reverse that transaction, but it increases legal and timetable risk around the hotel’s redevelopment and any remaining Vektra Boka property.
For prospective investors, the case illustrates the continuing cost of unresolved privatisation obligations, restitution claims and creditor hierarchies. Attractive coastal locations retain development value, but that value cannot be financed efficiently until title, payment priority and the state’s right to intervene are sufficiently clear.
