Montenegro has spent the past decade transforming itself from a niche Adriatic stopover to a credible luxury-and-lifestyle destination, with three anchor master-developments underpinning its repositioning on Boka Bay — Porto Montenegro (Tivat), Luštica Bay (Tivat/Herceg Novi) and Portonovi (Herceg Novi).
An increasing number of foreign tourists has helped attract a raft of global hotel operators, with new schemes opening this year and next, especially in and around Budva.
Total tourist arrivals to Montenegro went up by 6.3 per cent in the first six months of 2025 to 940,800, according to the latest central bank preliminary figures issued in August and tourism revenue contributes around a quarter of the country's economy. Annual visitor numbers of around 2.6 million are now back at pre-pandemic levels and while the season peaks across the summer, the shoulder autumn season is also growing in popularity.
Much of the current tourism growth is being driven by the three major mixed-use waterfronts, which feature port berths, retail, branded residences and upscale hotels, while Porto Montenegro recently delivered its second major neighbourhood, Boka Place. The retail- and lifestyle-driven district has been designed to broaden demand beyond the yachting season, and the keystone hospitality asset is SIRO Boka Place, Kerzner’s wellbeing brand, which began welcoming guests in May 2025.
Well-being hotel and luxury
Kerzner’s first hotel in Europe and second overall after its Dubai debut, the hotel has 96 rooms and 144 residences, all designed to promote holistic well-being, and the hotel sits within a wider pipeline of F&B and beach-club openings designed to maintain the destination as a year-round location.
In July, Singapore-based hospitality brand Banyan Group also expanded its footprint in Europe by adding Montenegro's Mamula island to its portfolio.
Mamula Island, also known as Lastavica, is a private island retreat located on a small rocky islet on the mouth of Boka Bay, where the 19th-century Mamula fortress was turned into a hotel by Swiss-based Orascom Development Holding (ODH), which signed a 49-year lease deal for the project with the Montenegrin government back in 2015. The fort was fully restored two years ago and now offers 32 guest rooms and suites.
Beyond Mamula Island, ODH is also developing the Lustica Bay resort village, which includes Chedi Hotel, four beaches, over 30 retail outlets, sports facilities and a marina village. The project is being managed by Montenegrin company Lustica Development, a joint venture between ODH with a 90 per cent stake and the government of Montenegro with 10 per cent.
"This marks an important step in our journey of thoughtful global expansion - creating meaningful destinations that honour their natural and cultural context while delivering distinct guest experiences," Banyan Group President and CEO Eddy See said of the Mamula Island acquisition.
Global attraction of Montenegro
The Banyan Group’s entry should also deepen Asian/European demand and help lift rates in Montenegro and elevate brand standards in a country that is increasingly focusing on luxury development opportunities.
“Montenegro’s tourism sector continues to expand, with a noticeable increase in international visitors, enhancing the hotel market’s attractiveness. Kotor and Budva are experiencing rising rental prices in short term stays due to an increased tourist influx, with properties yielding substantial rental income,” according to Ioannis Orfanos, partner and head of capital markets at Colliers Greece
Beyond the coast, the north is evolving as a season-round, nature-driven alternative. Kolašin Valleys has delivered Montenegro’s first true ski-in/ski-out hotel, Swissôtel Resort Kolašin, which opened winter 2023/24.
Late last year IHG Hotels & Resorts signed its seventh hotel in Montenegro at Crowne Plaza Podgorica, its second property in the capital, owned by BIG CEE. The hotel has 122 rooms and is located within the Capital Plaza mixed-use development, which also includes several banks and multinational company offices. The Capital Plaza also houses residential properties and commercial spaces, including retail and restaurant areas.
Meanwhile, the 93-room Crowne Plaza Kolasin was set to open in the second half of 2025, as part of IHG's expansion in Montenegro, but is now expected to open in December this year.
Radisson Hotel Group enters market
In addition, Radisson Hotel Group recently announced the opening of Radisson Resort Ruža Vjetrova, a premium beachfront retreat on an isolated peninsula along the Adriatic coast in Dobra Voda.
“Radisson Resort Ruža Vjetrova is a fantastic addition to our growing portfolio in southeast Europe and a shining example of how our resort offerings are evolving to meet the desires of modern travellers seeking authenticity, nature, and meaningful experiences,” Radisson Hotel Group Vice President, Franchise Services Lars Gericke said.
And Spanish-based hotel company Meliá Hotels International is set to open Meliá Bečići Budva on the coast of Budva this year under the Meliá Hotels & Resorts brand. It will feature 294 suites, out of which 140 will be apartment units.
Budva is quickly becoming a multi-dimensional hospitality hub. With Meliá Bečići Budva (2025), Riviera Montenegro’s Swissôtel residences (circa 2027), and the Kamenovo resort in planning as Montenegro develops as a nature-meets-sun destination.