Aman resorts is taking over the two elite hotels with 220 beds and 186 employees and they will pay 2 millions of euros for the lease per year.
Podgorica – Budva Riviera for nine months of this year achieved a profit of about 3, 8 millions of euros, which hasn’t been marked in the last decade. The entire debt of about 7 million of euros, the amount that was the debt when the Budva tourist giant had ten more hotels in its ownership was paid back.
That is the position of the HTE Budva Riviera which starting from January will give to Singapore Aman resorts its best facilities – Sveti Stefan and Milocer, in a long-term lease.
Even though it appears that the chances for good business are decreased after the arrangement with the Singapore Company, the reality is, it appears, different.
The calculation says that just from the lease for Sveti Stefan and Milocer, Budva Riviera will have every year sufficient amount of money to give 6 or 7 gross month salaries to the employees that will remain in the company.
Aman will pay about two millions of euros per year and will take over 186 employees. Budva Riviera will then be left with less than 400 workers and a little bit more than 3.600 beds in the Tourist lodgment Slovenska plaza and hotels Aleksandar, Palas, and Kastel Lastva. I expect Mogren too to be given back by the court order under the ownership of Budva Riviera. The company also has a number of small facilities on the coast which will be sold.
For the next season, as it was recently said from Budva Riviera, they have already sold out almost all capacities, and what is most important, the prices were increased for 10 to 15 %.
Budva Riviera, two years ago was estimated at 69, 6 millions of euros. Nine years ago the value in the book register was 209 millions. Into the new calculation we don’t have the real value of the town – hotel Sveti Stefan, and also in the meantime Villas Oliva have been sold, as well as several restaurants, so the current estimation is not the real criterion. Also, one square of the land and business space at the seaside has a higher price than it had two years ago.
The facilities that in this moment are the ownership of Budva Riviera have more than 30.000 m2 of the usable (hotel) space, and they spread on over than 250.000 m2 of land.
The most valuable facility is the tourist lodgment Slovenska plaza which is estimated at 30, 4 millions of euros.
The complex which has 2.500 beds is situated on the land area of about 182.000 m2 on the very coast of the sea, whose value is estimated at about 18, 2 million of euros or 100 euros per m2. The hotel complex is estimated at 14, 8 millions of euros, while the outer decoration and infrastructure have the value of 1, 6 millions.
Hotel Aleksandar is estimated at 5, 8 millions of euros. The land complex of 17.000 m2 is estimated at 17 millions of euros or 100 euros per m2, while the facility, which has 10.280 m2 of usable space, is estimated at 3, 8 millions, or average 370 euros per m2 of the space.
One of the most expensive hotels is Petrovac hotel Palas, which is estimated at 10, 5 millions of euros. The hotel is situated on a land complex of 14.000 m2, which are estimated at 2, 1 millions of euros or 150 euros per m2. The residential part of 11.500 m2 of usable space is estimated at 7, 9 millions of euros or 695 euros per m2.
Hotel Mogren, which will, most likely, go into the hands of Budva Riviera, is estimated at 3 millions of euros. It is located on the land of 3.438 m2 in the heart of the town Budva, 50 meters away from the Old town. The parcel is estimated at 1, 02 millions of euros or 300 euros per m2. The hotel has 4.459 m2 of usable space, whose value is estimated at 1, 98 millions of euros, which by a simple calculation is 444 euros per m2 of the hotel space.
The estimated value of the so – called business unit Sveti Stefan, to which town – hotel Sveti Stefan belongs to, the administrative building, shopping center, summer stage, restaurant Pod Maslinom (UNDET THE OLIVE TREE), hotel Milocer with the villas, is estimated at 24, 3 millions of euros.
Town – hotel Sveti Stefan, which has not been really estimated, and Milocer remain in the ownership of Budva Riviera, but from January 2007 they will be given under the lease for 30 years.
THEY WILL HAVE 15% IN HILTON
Budva Riviera at the moment is negotiating also about the making contract arrangements with the well – known investment group Soravia from Austria.
Basically it has been arranged to found a joint company which would build in Budva an exclusive hotel with the license of some of the most famous world brands, most likely Hilton. Budva Riviera, as things are now seen, should give 17.000 m2 of land and in return it would get 15% of the ownership in the company which would build and run the Hilton.
With the investment group Soravia it is also being negotiated about the foundation of the joint firm which would run Slovenska plaza. The ownership will be divided after the estimation of Slovenska plaza, and especially the land on which it is situated. Soravia would take over the obligation to invest in Slovenska plaza and to bring it up to the level of the 4 star hotel, and in return they would get the share in the joint company.