Novak Djokovic, acclaimed as the most accomplished tennis player in the sport’s history, is working towards reopening the Sveti Stefan city-hotel which has remained closed since 2021.

In a conversation with Prime Minister Milojko Spajić, Djokovic shared with “Vijesti” that this was the primary motivation for his visit to Montenegro yesterday, underscoring his commitment to leverage his name and influence to address the issue.

As a global ambassador for the brand “Aman,” he conveyed that they had engaged in “initial discussions” and were fully briefed on the situation. Djokovic stressed that his efforts are aimed at serving the “general interest” of Montenegro, expressing hope that a resolution would be forthcoming soon.

“I have essentially been tasked and requested by my partners at Aman, of which I am a global ambassador, to seek a mutually acceptable solution. I am not on anyone’s side; I am merely striving to work for the overall benefit of Montenegro. It would be unfortunate if our efforts at Aman did not yield results, as I would hate to see ‘Aman’ exit Montenegro. I believe that our meetings today are just the start of what will lead to a resolution soon,” Djokovic stated.

Djokovic expressed regret that the situation surrounding Sveti Stefan has persisted for four years:

“I got married at Sveti Stefan in 2014, and those memories rank among my most cherished from Montenegro. It’s genuinely disheartening to observe the current state of affairs over the past four years. When the hotel closed, I sought to understand the reasons behind it and to offer assistance. Unfortunately, conditions have not yet aligned for me to utilize my name, position, and influence to achieve a resolution.”

Since August last year, Djokovic has taken on the role of global ambassador for “Aman”:

“Aman is recognized as the world’s premier hotel brand and chain. They entered the Montenegrin market in 2006, attracting numerous foreign investors who subsequently invested in various projects such as Luštica, Porto Montenegro, and Porto Novi.”

The company “Adriatic Properties,” represented by Greek businessman Petros Stathis, has managed the closed city-hotel Sveti Stefan and the villa “Miločer” since 2021. Construction on the new hotel “Kraljičina plaža” has come to a halt due to ongoing arbitration proceedings. Without a resolution concerning the operations of Queen’s Beach and the pathway connecting it to the spa center in Miločer Park, the hotel operator “Aman” is unwilling to reopen the previously popular city-hotel Sveti Stefan, citing concerns regarding guest safety and privacy.

The closure of “Sveti Stefan” was prompted by the contested use of Queen’s Beach, which had been off-limits to the public for decades and reserved for hotel guests and political figures. The city-hotel shut down in 2021 following a local breach of the fence surrounding Queen’s Beach, with the Public Company for Coastal Zone Management subsequently mandating its removal, thus reopening pathways in Miločer Park.

This event initiated a legal dispute at the International Court of Arbitration in London. In November 2022, “Sveti Stefan Hotels,” HTP “Miločer,” and the then-Ministry of Economic Development filed a lawsuit against the tenants “Adriatic Properties” DOO Budva, “Aidway Investments Limited” from the British Virgin Islands, and “Aman Resort” for breach of contract. In return, “Adriatic Properties” and “Aidway Investments Limited” filed a lawsuit seeking €100 million in damages.

The main hearing is scheduled for May.

In the interim, the Commercial Court has validated the London Arbitration Court’s decision, directing the company “Sveti Stefan Hotels” and the Government to pay €620,000 to “Adriatic Properties” for the costs incurred during the international tribunal proceedings.

The ongoing arbitration pertains to the Lease Agreement for the Hotels “Sveti Stefan” and “Miločer” as well as for “Kraljičina plaža,” finalized on January 31, 2007. The Government authorized a 30-year lease agreement for the Hotel “Sveti Stefan,” Villa “Miločer,” and Hotel “Kraljičina plaža” on January 15, 2007. This arrangement includes an annual guaranteed rent of €1.6 million, subject to adjustments every three years. The lessee was committed to keeping the hotels operational for a minimum of 11 months annually and investing €50 million into the renovation of “Sveti Stefan.”

An annex in 2015 extended the lease for “Sveti Stefan” by 12 years to 2049 and reduced the rent from €1.6 million to €1.1 million. The annex for “Kraljičina plaža” extended the lease from 30 to 90 years, permitting the construction of a condo hotel, with half the apartments designated for sale and half for hotel operations. These agreements also included multi-decade leases for the beaches.

The ensuing dispute has created further complications—Stathis’ company has not paid rent to the government-managed HTP “Miločer” complex, which once housed the old “Kraljičina plaza” and where new construction is underway, for nearly two years. The quarterly payment amounts to €87,000, pending the outcome of arbitration.

Furthermore, the quarterly rent of €380,000 has not been remitted to “Sveti Stefan Hotels,” the owner of both the city-hotel “Sveti Stefan” and the villa “Miločer.”

Consequently, both companies are currently facing severe financial challenges.

News