KHA pledges to invest 32 mln euro in Montenegro's Ulcinjska hotels - govt

KHA has proposed to invest 16.24 million euro to lift the category of Olympic and Bellevue hotels of Ulcinjska Rivijera to four stars until 2019, the Montenegrin government said in a statement on Wednesday. 

The investor also committed to having at least 600 four-star rated rooms at the two hotels in 2027 and paying an annual concession fee of at least 450,000 euro, the government said.

The Montenegrin privatisation council has recommended to grant the concession contract for operation of Ulcinjska Rivijera's assets to KHA, the government added.

In April, tourism minister Pavle Radulovic said that the KHA consortium, owned by German tourism group TUI, Mexican hotel operator Karisma Hotels International and Croatian concern Agrokor, has sent a letter of interest in the concession of Ulcinjska Rivijera's hotels.

Pension insurance fund Fond PIO is the largest shareholder in Ulcinjska Rivijera, with a 25.3% stake. The total shareholding of the Montenegrin state stands at 88%.

($ =0.8965 euro)