Opportunity awaits: The time is right to invest in hotels in Montenegro

by | 17 May 2020 | Projects

The Bay of Kotor, a UNESCO Heritage Site in Montenegro – a country full of hotel development opportunity.

A special TOPHOTELDEVELOPMENT story looking into hotel opportunities in Montenegro: a country ranking highly among leading private and corporate investors.

We kick off a special series of TOPHOTELDEVELOPMENT stories focusing on hotel development opportunities in global hospitality hotspots.

Imagine a place where the Adriatic sea and mountains flawlessly intertwine into one seamless landscape.

A land that boasts five national parks and four UNESCO heritage sites; a place that is home to the Mediterranean’s only fjord, world’s highest mausoleum, Europe’s deepest canyon and one of the three remaining rainforests in the old continent.

A land endowed with more than one hundred sandy and pebble beaches that extend over 293 km long coast, as well as more than thirty lakes, scattered everywhere, from its shoreline to the mountains in the north.

Now imagine that all of this, and so much more, in a land that is smaller in size than the Bahamas, land more than two times smaller than Hawaii.

Montenegro simply and completely entices you. It captivates you with its nature which will humble you with its beauty. It invites you to soak up the sun, for it is endowed with a typical Mediterranean climate, with an abundance of beauty and sunny days throughout the year.

It calls you to immerse yourself in its past, carved in every stone of its charming towns and staggering mountains, implanted deep in every corner of its land and its people. Its people will show you the true meaning of generosity and make you feel like you have found your true home.

Aman Sveti Stefan, Budva

Hotel tourism allure

Having in mind its location, natural beauties and the fact that every site is conveniently close to each other, it is no wonder that Montenegro has seen a rise in tourism investments, with more and more world-famous hotel brands keen on acquiring a piece of the wonderland for themselves.

Within the last decade, Montenegro has continuously attracted brands such as Regent Hotels, The Chedi, Aman Resorts, Hilton, Marriott, Melia including those to be open in 2020 One & Only Resorts and Nikki Beach Hotels & Resorts.

Each brand has captured its enviable surroundings, enhancing it with stunning hotels, resorts, and beach clubs.

The attraction for investment not only lies in the natural wonders which the country has to offer but also in global statistics and proof of Montenegro as a competitive destination amongst long-standing attractive tourism destinations.

Montenegro remains highly ranked, currently 5th, on the list of tourism destinations with the quickest growth in the world. The 2019 report by the World Tourism Organization (UNWTO), states that Montenegro has been rated according to its increase in the total number of tourists by 21.4%.

Investing and its benefits

The Government of Montenegro has throughout the past years been eager to attract foreign investors.

With its open economy, devoted to the improvement of the country’s business environment, Montenegro has become a solid and reliable partner to credible private and corporate parties.

Some of the appealing reasons for investments are a strategic geographical position, with access to the sea and a favourable tax climate with a corporate tax of 9%.

Montenegro’s recently announced and approved economic citizenship program has allowed foreigners to be granted the citizenship of Montenegro at the discretion of the Ministry of Interior Affairs and Public Administration through a designated investment.

Starting in October 2019, Montenegro as a future candidate for EU membership has released The Montenegro Special Citizenship by Investment Program (MSCIP) which require investments in economic activity (business) that will contribute to the economic development of Montenegro and/or investment in real estate and/or payment of funds into a special account of the Budget of Montenegro.

Porto Montenegro, Tivat

Investing in tourism

With the increase of capital in the tourism industry and its appeal to major investment groups, Montenegro is currently expecting approximately 10 projects set to increase the total of foreign capital more than 3 billion Euros.

A majority of these investments and projects are set on the coastline, however, the stunning mountain spread north of Montenegro has been increasing interest amongst investors.

Accordingly, Montenegro has set a list of economic and fiscal measures and amendments to stimulate investment in tourism as a priority development sector such as:

  • Amendments to the Law on Spatial Planning and Construction of Structures (2013) abolished the obligation to pay communal fees in the case of construction of four and five-star hotels;
  • Amendments to the Law on Real Estate Tax envisaged the reduction of annual real estate tax by 30% for 4-star hotels and by 70% for 5-star hotels;
  • Amendments to the Law on Value Added Tax (VAT) abolished obligation for payment of import VAT for the delivery of products and services for the construction of the 5 or more stars hotels;
  • Amendments to the Law on Value Added Tax introduced a VAT of 7% on food and beverage in hotels with at least 4 stars in the northern region, and with at least 5 stars in the central and the southern region

With the measures implemented, these major investments are and have been in the process:

  • Porto Montenegro by ICD (Investment Corporation Dubai) – A nautical resort with 125 luxury residences and a complete entertainment repertoire located in Tivat, Boka bay. The resort is being completed in stages as its first stage along with the opening of its first five-star hotel, Regent, has been more than successful.
  • Lustica Development by Orascom – already completing its first stage, the integrated project is planned to offer 2,080 residential units, 7 hotels with a total capacity of 1,370 rooms, 2 world-class marinas on the Adriatic Sea with 170 berths, an 18-hole golf course, a Thalasso Centre, commercial facilities, a town center, and basic infrastructure facilities.
  • Blue Horizon by Qatari Diar – known as one of the largest real estate companies in the world, Qatari has begun the development of its luxury project, ideally located between the airports in Tivat & Dubrovnik. Blue Horizon is set to become a five-star luxury hotel that will include sports facilities and villas with a unique seafront setting surrounded by lush greenery.
  • Porto Novi by Azmont Investments – completing its first stage in 2019, this development continues to gain interest as its first five-star hotel, One & Only Resort, opens in 2020. Once complete, Portonovi will not only include the One&Only Portonovi, but also a destination wellness spa, a marina catering to superyachts, a luxury beach club, the Portonovi Arena, Conference Centre, and a tennis academy
  • Mamula by Orascom – a former concentration camp during both World Wars is due to become one of the most unique resorts in Europe and the world. The revitalization project of the Island and the Mamula fortress will include a luxury boutique hotel & spa with 34 rooms, a memorial museum, four hospitality facilities, a shop, swimming pools, and a non-motor water sports club.

Between the existing and upcoming projects, the natural wonders which Montenegro holds, as well as the favorable conditions, the country is bound to remain amongst the top-ranking countries economically and strategically.

Discover more hotel investment opportunities in Montenegro here, or visit TOPHOTELDEVELOPMENT for more hotel development projects around the world.

Kristina Jonica
Kristina Jonica

Investment Consultant & Coordinator at Montenegro Coast Real Estate Agency

An internationally experienced hotel, resort & restaurant manager, with a devotion towards hotel & resort developments. Focused on five-star and luxury projects, she has acted as an advisor for numerous investing companies.

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