Herc Gradnja acquires Igalo hotel for EUR 11.3 million

Montenegrin company Herc Gradnja has bought the Adriatic hotel Igalo for EUR 11.325 million at the second auction for the hotel's sale. The purchase price is below the starting price of 18.85 million euro at the first auction that failed to attract any buyers in January.

"We are going to pay the full amount in 15 days," said the owner of Herceg Novi-based Herc Gradnja, Bratislav Pidzula. He said that, depending on administrative procedures, he hopes to launch a planned investment within a year.

So far, hotel Igalo belonged to troubled local hotel operator Vektra Boka. Its sale was organised by a public bailiff with the aim of allocating the proceeds to settle creditor claims. If Vektra Boka enters bankruptcy, domestic lender CKB would be the first, and perhaps the only creditor to have its claims settled as the sale of the company's assets would not raise enough money to cover all claims.