Montenegrin tourism company Vila Oliva has acquired Hotel Plaža in Herceg Novi for €20.4 million, adding one of the city’s best-known hospitality properties to a coastal portfolio containing more than 3,500 beds.
The hotel was sold through an enforcement procedure involving Vektra Boka. Its assessed value was approximately €30.7 million, while the starting price at the first public sale was around €24 million. Creditors and debtors ultimately accepted the lower purchase price to allow outstanding obligations to be settled.
Vektra Boka owes creditors about €12 million, including liabilities to employees, Herceg Novi municipality, the local water utility, the Tax Administration and Elektroprivreda Crne Gore. Workers are expected to receive recognised claims and overdue employment contributions from the sale proceeds.
Vila Oliva, controlled by businessman Žarko Rakčević, expects to invest another €15–20 million in renovating the property. The company intends to preserve the hotel’s existing form rather than replace it with a new development, targeting full restoration by 2028.
The acquisition therefore represents a potential total commitment of €35.4–40.4 million, including the purchase price and planned renovation expenditure. It also expands Vila Oliva’s presence in Herceg Novi, where the company is already a significant minority shareholder in the Dr Simo Milošević Institute in Igalo.
Legal and shareholder disputes surrounding Vektra Boka have not disappeared. Minority shareholder Danilo Matijašević has maintained separate claims estimated at around €10 million, while allegations concerning the conduct of the sale have also been raised. These disputes could complicate the transaction, although the buyer expects to pay the remaining purchase amount within the stipulated 30-day period.
For Herceg Novi, the commercial test will be whether Vila Oliva can reopen the hotel on schedule and reposition it in a market increasingly dominated by renovated upscale properties and internationally branded coastal resorts.
