Possible senior EBRD loan for the refurbishment, extension and operation of Hotel Crna Gora

Refurbishment, extension and operation of Hotel Crna Gora (the “Hotel”, or “Project hotel”), an existing hotel of 150 rooms located in a prime central location of Podgorica, Montenegro. After refurbishment, the Project will comprise of the Hotel, with approximately 200 rooms, which will be operated at international hospitality standards under the Hilton brand, a spa centre, congress centre, underground garage and a retail gallery of 5,500 m2 Gross Leasable Area within the Hotel complex. The Project is being built in 2 phases. The project will introduce an international standard hotel chain into the city that currently lacks accommodation in the premium / institutional range of the market.  

Market expansion (through backward linkages) and improved business standards. The Project will contribute to a significant upgrading of technical and managerial skills in the economy beyond the Project entity both at the hotel construction and operating stages. Construction companies involved in the Project will be required to deliver an international standard hotel product in full compliance with Hilton’s specifications. Once the hotel is fully operational, the employees will benefit from thorough training in customer service, marketing and hospitality, as well as catering management, to ensure that an international standard of service is achieved.

The Project will set a new benchmark in its innovative design and quality. The Project will introduce an international premium hotel chain. It is expected that the demonstration effect of the Project is two-fold and particularly strong since many hotel operators and financial institutions still shy away from the perceived risks and obstacles related to hotel operations in Montenegro. Observing a successful hotel project will lead, on the one hand, other international hotel operators to consider expanding their operations into Montenegro, and on the other hand, it will also encourage commercial banks and equity investors to look at similar projects in the future.
Crna Gora Hotel d.o.o, a special purpose company to be incorporated in Montenegro (“the Borrower”). And applied for a senior loan of up to EUR 23.9 million.

News source: EBRD link: article