Vule Tomasevic, the Executive Director of Budvanska Rivijera, announced Wednesday that the Austrian corporation Soravia Group will invest approximately EUR 60 million in the construction of a luxury hotel and the reconstruction of the Slovenska Plaza tourist resort in Budva. The announcement came after the contract for this deal was signed with the representatives of Soravia Group in Vienna.

The contract, the total value of which is EUR 63 million, is for the joint usage and reconstruction of the Slovenska Plaza tourist resort and the construction of a luxury hotel.

Tomasevic said that the Austrian corporation will invest a minimum of EUR 23 million in the reconstruction of Slovenska Plaza and another EUR 35 million in the construction of the hotel, which will have 30 000 square metres of useful space.

The total value of the hotel is EUR 40 million and, according to earlier announcements, it will be built according to the licence from the Hilton.

Shortly before the signing of the contract, the Montenegrin Ministry of Tourism announced that the deal does not represent a privatisation of the Slovenska Plaza tourist resort, as the contract limits the cooperation to a period of 21 years, after which the property will be in the permanent ownership of Budvanska Rivijera.

Slovenska Plaza is a two-star tourist resort with 2 500 beds.