According to Serbian Economist, the island hotel Sveti Stefan near Budva, which is iconic for Montenegrin tourism, may resume operations by May 1, 2026, after many years of inactivity, as the Montenegrin government and the complex’s tenant, Adriatic Properties, are close to reaching an agreement on its reopening.
According to the draft agreement, existing contracts with the tenant and Aman Resorts will remain in force, the parties waive their claims in arbitration proceedings, and each party bears its own costs in London, with the exception of Adriatic Properties’ obligation to compensate Sveti Stefan Hotels for approximately £50,800 previously paid to the arbitration court.
A key element of the project is the obligation of the tenant and Aman to prepare the complex for opening no later than May 2026, with the lease term extended for another four years to compensate for the period of downtime and lost revenue.
A separate section sets out obligations to work with the local community: priority employment for residents of Budva and Paštrovici, purchasing products from local producers, regular fairs for local goods, educational and scholarship programs for young people, and year-round tours of the region. A new advisory body, tentatively called the “Bankada Council,” will be responsible for monitoring the implementation of these points and will report annually to the government. It may be headed by Serbian tennis player Novak Djokovic, which, according to Vijesti sources, will give the project additional publicity and credibility.
According to media reports, Djokovic has been acting as an informal mediator between the Montenegrin government, Aman Resorts, and Adriatic Properties in the dispute over Sveti Stefan since early 2025 and is discussing the possibility of participating in the project as an investor and representative of the Aman hotel chain.
The Sveti Stefan complex, which includes the island hotel of the same name, the Milocer villa, and the adjacent beaches, has been closed since 2021 amid a conflict between the state and the tenant over beach access and guest privacy.
Sveti Stefan is a historic fortified island village on the Adriatic coast a few kilometers from Budva, which was transformed in the mid-20th century into an elite resort where European monarchs, world politicians, and Hollywood actors vacationed over the years. In 2007, the Montenegrin government signed a 30-year lease agreement for the Sveti Stefan-Milocer complex with Adriatic Properties, a company linked to Greek businessman Petros Stathis, and operational management was transferred to Singapore-based luxury operator Aman Resorts. In 2015, the lease was extended until 2049, with the annual rent reduced to approximately €1.1 million.
https://t.me/relocationrs/1886
