Aman Resorts signs contract for city-hotel in Montenegro

July 1, 2007 in Newsletter

Sveti Stefan Montenegro

Sveti Stefan Montenegro

After more than one year of negotiations on a long-term lease of hotels St. Stefan, Miloćer and Queen’s Beach, Aman Resorts from Singapore has finally signed the contract in Podgorica this month. This luxury resort chain shall pay EUR 1.6 million rent for St. Stefan and Miloćer and EUR 500,000 for Queen’s Beach, with investments of at least EUR 40 million. During the first year of reconstruction the annual rent will be EUR 1.96 million, then afterwards it will increase to 2.1 million. After several years it will rise further, not only as a result of harmonization with the inflation rate, but also because the contract stipulates for payment of ten percent of all income if that amount exceeds EUR 2.1 million.

Aman has agreed to take over all 220 employees from the three hotels. They also intend to reconstruct and modernize St. Stefan and Miloćer, while the hotel on Queen’s Beach shall be torn down and a new, exclusive property built.

“Aman will return the former shine to Sveti Stefan and (give it) a leading position in the tourism of the Mediterranean”, said Adrian Zecha, head of the Aman Resorts board of directors after the signing.