The “Budvanska Riviera” hotel group is obligated to hand over several plots, amounting to 800 square meters, located in the center of the “Slovenska plaža” tourist area, to the Municipality of Budva after a span of forty years.

This information is detailed in a ruling from the Basic Court in Cetinje, to which “Vijesti” has gained access.

“The claim has been accepted, affirming that the Municipality of Budva holds property rights to the land designated for local access roads, green spaces, and undeveloped construction land totaling 800 square meters,” states the decision from the Cetinje court.

According to reports, Montenegro’s largest hotel company, predominantly state-owned, will contest the initial court’s ruling in higher court proceedings.

The verdict outlines that the Municipality’s claim stems from the argument that the disputed plots were social property nationalized in the 1960s from a family in Staromestanja, yet they have never been removed from their possession.

The legal counsel for HG “Budvanska rivijera” refuted the claim made by the Municipality of Budva, primarily asserting there is no legal basis for the hotel’s registered property rights. The Cetinje court reviewed findings from a 1990 report by the Municipality’s Commission on Survey Data, which confirmed that “Budvanska rivijera” possessed rights to manage, use, and oversee the disputed plots.

“Public inspections of the survey data and cadastral classifications took place in March and September 1987, and December 1989, with no objections from the Municipality of Budva,” the explanation elaborates.

This land serves as a thoroughfare between the tennis courts on Slovenska Beach and the main boulevard, in addition to parts of the greenery within the hotel complex.

Conversely, as previously reported by “Vijesti”, the Municipality of Budva is currently involved in legal actions concerning the restoration of ownership of the hotel group, which it alleges was unjustly taken by the Government.

The local administration, specifically the Secretariat for Property Protection led by Đorđe Zenović, filed a lawsuit in November 2023 against the Government, Hotel Group “Budvanska rivijera”, “Sveti Stefan hotels”, and tourism entity “Miločer”, aiming to declare void the share transfer agreement established 26 years prior that left the Municipality devoid of stake in the country’s leading tourism company.

The Municipality requests the Commercial Court to announce the nullity of the Share Transfer Agreement from May 1997, stating that it holds 3,376,939 shares, equating to 41.6% of the capital in “Budvanska rivijera,” as well as shares in “Sveti Stefan hotels” and “Miločer,” the quantity of which will be detailed post-expert assessment. The lawsuit seeks a temporary order to prevent the Government from selling or burdening shares or interests in “Budvanska rivijera.” The case in question, with a preparatory hearing scheduled for tomorrow, is valued at 22.9 million euros, as stated in the lawsuit accessed by “Vijesti.”

“The lawsuit seeks to rectify the injustice suffered by the Municipality during a dubious property transformation. The original revenues forfeited by the Municipality of Budva for the construction and refurbishment of the “Budva Riviera” hotels cannot and should not be transferred to the state, as they belong to the citizens of Budva,” Zenović remarked previously to “Vijesti”.

They Face Millions in Damages

The Court of Appeal recently upheld the Commercial Court’s verdict, dismissing as groundless the claim from the Budva-based enterprise “Mercur,” the former lessee of the “Mogren” hotel, that the “Budvanska rivijera” hotel group compensate them 1.2 million euros plus interest for their investments in remodeling the Budva hotel, including “Kafe terasse”.

This decision is a relief for Montenegro’s largest hotel company, as an adverse ruling, with claims exceeding two million euros including interest, could have pushed it toward financial disaster. Notably, just a month and a half ago, the Podgorica firm “Zetagradnja” withdrew approximately four million euros from HG “Budvanska rivijera” following a ruling by the Court of Appeal regarding a land sale dispute dating back over a decade.

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