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€ 13 million invested in Mediteran hotel

€ 13 million invested in Mediteran hotel

Until 2025, 13 million euros will be invested in the Mediteran hotel in Ulcinj, this is Specified in the Agreement regulating the relationship between the government and the buyer of this property, Bećović Mangement Group of an American businessman from Ulcinj Isa Bechovich.

In addition to the fact that the amount is less than originally declared, the buyer is not required to provide a bank guarantee. Thus, the practice of simplifying the tourist potential of Montenegro continues.

This is a continuation of the long-awaited history of the old Mediteran Hotel in an extremely attractive location above the Small Square in the cozy town of Ulcinj. The hotel overlooks the Old Town - a medieval walled city and the historical core of the modern city of Ulcinj. Surrounded by a powerful fortress wall, the Old Town stretches on a high rocky promontory washed on three sides by the Adriatic Sea. In the eastern part of the city, there is the Kalaya Castle, as well as the Balsic Tower.

Mediteran Hotel Purchase History

An international tender for the sale of the hotel was announced in 2004 by the hotel and travel company Ulcinjska rivijera, which was then in a state of bankruptcy. In accordance with this procedure, a contract was signed in April 2005 with the management company of Bečovic, which was amended in 2006 with two annexes.

According to the available information, Becovic paid 940 euros for Mediteran on time. He acquired ownership of 000 square meters of land with 17 buildings belonging to the hotel.

However, almost everything remained in this state until 2017, when renovations were made and the hotel received a three-star category. The reason is the delay in the acceptance of the project documentation, which came into force only in March 2018.

However, the previous government decided in May last year to terminate the contract with Bechovic's company, but this did not officially happen. Thus, the new documents state that the current government and the Mediteran buyer agree that "since the signing of the Agreement until today, the social circumstances have changed significantly, which partially influenced the fact that neither side was able to fulfill their contractual obligations." ... So the situation was practically back to the beginning.

The current state of affairs of the hotel owner Mediteran and the government

Then Deputy Prime Minister Dritan Abazovic "took matters into his own hands and agreed to continue working with Becovic this summer."

As noted, after their meeting on July 27, an agreement in principle was reached that the reconstruction and construction of the new part of the Mediteran Hotel will begin after the end of the summer tourist season.

“Bečović informed Abazović about the planned investments in the amount of 15 to 20 million euros and said that Bećović Management Group is committed to ensuring that the Mediteran hotel reaches the four plus stars (4+) standard,” the Deputy Prime Minister said. He added that Abazovich received guarantees from Bečovic that in three years an investment worth more than 15 million euros will be realized in Ulcinj.

So, on September 7, the buyer sent an official letter of intent to the government, in which he presented a plan for future investments. According to him, Becovic's company will invest three million euros from April 30, 2022 to the end of 2022, and then in 2023 it will invest another five million euros, as announced for the period in 2024 and the first four months of 2025. The final dynamics of the investment will become known after the completion of the main project, which the Mediteran buyer is obliged to provide by the end of April next year.

"As an integral part of the investment and dynamic plan, the buyer hereby undertakes to provide proof of enforcement," the government document says, but also states that the investor is exempted from providing the bank guarantee that was specified in the original contract.

However, in order to somehow guarantee that something concrete will happen to the Mediteran Hotel in 16 years, the government decided to send inspectors who will prepare an annual report on the situation on the spot, and the management company Bećović will be obliged to submit a semi-annual report on the work performed. ...

In case of a delay in implementation, the investor has six months to correct violations, when new control awaits him. Failure to do so may result in termination of the contract. In this case, the property is returned to Ulcinjska rivijera, and Bečović compensates for the damage in connection with the release from the obligation to provide a guarantee.

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