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NewsMontenegro, Luxury hotel Cruiser in Budva is slowly sprouting up

Montenegro, Luxury hotel Cruiser in Budva is slowly sprouting up

13.52 million EUR was invested in the construction of the luxury hotel Cruiser by the end of last year’s November, according to the data of the independent controller Crowe MNE. The Hotel is being built by the companies Bemax and Master Inženjering in Budva.

As a reminder, this hotel is included in the list of development projects in the field of tourism, it will have 5 stars, 252 accommodation units and will work according to a mixed business model. The total value of the investment is EUR 58.17 million, and the investor’s plan is to enable the employment of 153 workers through the implementation of the project. According to the data from the business plan, the expected start of operation of the hotel is October 1, 2024.

At the last session, the Board adopted information on the first, second, third and fourth report of the independent controller on the findings of the factual situation regarding the realization of the project. The first report covers the period from November 27, 2020 to May 27, 2021. The report states that for the purpose of realizing the project, in the reporting period, they spent financial resources in the total amount of EUR 2.45 million excluding VAT.

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The report states that the project’s investors and the owners of the land where the Cruiser Hotel is being built have entered into a joint construction contract, according to which, as compensation for the ceded land, the owners will build a separate hotel complex (phase II) with a total investment value of around 15 EUR .58 million. EUR 2.74 million was invested in the construction of this phase until May 27, 2021, which is indirectly included in the value of the investment in the Cruiser Hotel, but is not considered as part of the investment in the building itself in the stated reporting period – the document states.

The business plan, In the first half of the year, provided for an investment of 17.5 million EUR, of which 15 million refers to the provision of land for the construction of the hotel. The investors secured the land through a joint construction contract, which will become their property after the owners of the land have built a hotel complex (phase II).

Based on that, we can conclude that the implementation of the project in the reporting period proceeded at a good pace. Also, in the first report of the independent controller, it was stated that the total amount of investment in investments for the period until November 27, 2020, that is, until the inclusion in the List of Development Projects, amounts to EUR 43,914 without VAT – it was stated in the report.

The second report of the independent controller covers the period from May 27 to November 27, 2021. It confirmed the costs in the realization of the project for the services incurred in the reporting period in the total amount of around EUR 2.3 million excluding VAT. As the business plan provided for an investment of about 2.7 million related to construction works, concreting and insulation, it can be concluded that the investors are carrying out the planned works in accordance with the dynamic plan.

When it comes to phase II of the construction of the facility, which refers to the construction of a special hotel complex that will be given as compensation for the land, in this period about EUR 1.14 million was invested, which indirectly enters into the value of the investment in the Cruiser hotel, but is not considered as part of the investment in the facility in the stated reporting period.

The third report of the independent auditor covers the period from November 27, 2021 to May 27, 2022, and it confirmed investments in the amount of EUR 4.72 million excluding VAT. EUR 889,284 excluding VAT was invested in phase II of the complex.

The investment foreseen in the business plan for the observed period amounts to EUR 4.62 million, and it refers to construction work, concreting, insulation and work on partition walls, so based on the above, it can be concluded that the investors are carrying out the planned work in accordance with the dynamic plan – the above is in the report.

The last, fourth report refers to the period from May 27 to November 27, 2022, when a little over four million euros were invested, which, as assessed by the Crowe MNE control, is in accordance with the business plan. About 4.79 million EUR was invested in phase II of the project, and this amount is indirectly included in the value of the investment in the Cruiser Hotel, but is not considered as part of the investment in the facility in the stated reporting period.

The controller’s report also shows that the total value of funds invested in the construction and furnishing of the Cruiser Hotel since its inclusion in the List of Development Projects until November 27 of last year amounts to EUR 13.53 million without VAT.

Also, representatives of the Ministry of Economic Development and Tourism visited the construction site of the hotel on January 19 this year and concluded that construction work on the building is underway. The representatives of the investors said that the final works on the foundation slab, as well as the works on the above-ground part of the structure of the building, and earthworks are in progress.

Also, the representatives of the investors informed that the biggest challenge in the implementation of the project so far is the earthwork, i.e. the construction of the substructure that serves the purpose of protecting the road, as well as the underground water at the construction site, and pointed out that after the completion of all these works, it is expected that the dynamics of the remaining works will be faster in the coming period – it was concluded in the report.

 

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