Lease Agreement for the Complex HTP “Ulcinjska Rivijera” AD

The lease agreement for the Complex HTP “Ulcinjska Rivijera” AD was concluded on September 25, 2017, between the Government of Montenegro and HTP “Ulcinjska Rivijera” AD Ulcinj, as the Lessor, and a Consortium consisting of the following companies: “Karisma Hotels Adriatic Montenegro” DOO Podgorica, “Karisma Hotels & Resorts Corporation” LTD Tortola BVI, “Karisma Resorts International” S.A. from the Republic of Panama, “Karisma Operating Holding” S.A. from Mexico, and “Karisma Hotels & Resorts de las Americas” LTD Tortola BVI, as the Lessee. The lease agreement came into effect on November 6, 2017, with the signing of the Protocol on the Closing of the Lease Agreement for the Complex HTP “Ulcinjska Rivijera” AD.

The total investment value is 31.83 million EUR for the reconstruction and adaptation of the Olimpic and Bellvue hotels with annexes and the construction of accompanying facilities – pools, sports fields, and catering facilities, to be implemented in three phases:

  • First phase (2017 – 2018): 10.24 million EUR
  • Second phase (2018 – 2019): 6 million EUR
  • Third phase (2026 – 2027): 15.5 million EUR

It is planned to increase the Complex’s capacity to 600 rooms, with a minimum standard of 4 international stars. In the first 5 years of the lease, it is planned to invest 50% of the agreed investment – 16.24 million EUR.

The achievement percentage of the Dynamic Plan is 100%, and in accordance with the Lease Agreement and the Investment Program, the obligation to construct new facilities, including a four-star hotel annex with a capacity of 96 beds, a pool, and other necessary facilities for the functioning of the tourist complex, has been fulfilled. This has been confirmed in the reports of the Investment Controller.

The company additionally invested about 650 thousand EUR in the construction of an indoor pool for the “Olympic” hotel and the reconstruction of existing rooms.

Although the Lease Agreement and the Investment Program stipulated that the third phase of the investment would be realized in the period 2026-2027, the company “Karisma Hotels Adriatic Montenegro” continued with the reconstruction of part of the former “Olympic” hotel, now the “Long Beach Holiday” hotel. The restaurant, reception, and lobby areas were renovated, and facade and terrace works were carried out. Two new elevators were installed, and interior renovation works for rooms and other common areas for hotel guests were undertaken.

The hotels “Holiday Village Montenegro” and “Long Beach hotel Montenegro” were rebranded under the name “Azul Beach Resort Montenegro” in 2021, and the main restaurant within the complex was reconstructed in 2022. According to the Lessee,

the total investments in the Project amounted to 28.3 million EUR by the end of 2023.