Sveti Stefan, the island and hotel-town that once hosted Hollywood stars, royal families and the global jet set, is coming back to life under the Aman Resorts brand, returning one of the region’s most exclusive destinations to the Mediterranean map. At the same time, the continued development of the luxury complex in Žabljak shows that Montenegro is increasingly building the image of a high-end tourism destination that combines authentic nature, history and the highest standards of modern hospitality.
Known for its intuitive service and complete privacy, Aman Sveti Stefan will once again allow guests to enjoy the unique combination of the privacy of Villa Miločer and the special atmosphere of the fortified island settlement of Sveti Stefan. Throughout the season, organized guided tours of the island will also be available for outside visitors, giving them the opportunity to discover one of the Adriatic’s most famous symbols.
Sveti Stefan hides a number of lesser-known yet fascinating details that further confirm its uniqueness. The island was named after the Church of Saint Stephen, dating back to the 15th century, which represented the spiritual center of the former settlement. Few people know that in the mid-20th century Sveti Stefan was almost abandoned. In the 1950s, a decision was made to transform the entire village into a luxury hotel complex — a unique project in Europe at the time. The local residents were relocated to the mainland, while their stone houses were carefully restored and converted into suites, preserving the authentic architecture. This “hotel-town” concept quickly became a global phenomenon and one of the most successful tourism projects of former Yugoslavia.
Sveti Stefan was also a favorite destination for political and state delegations during the Yugoslav era, as well as a meeting place for artists, diplomats and businessmen away from the public eye. During the 1960s and 1970s, Sveti Stefan became synonymous with glamour and luxury, attracting the world jet set and some of the most famous personalities of the era. Among its guests were Sophia Loren, Elizabeth Taylor and Richard Burton, as well as Kirk Douglas, Claudia Schiffer and Sylvester Stallone, while legendary chess player Bobby Fischer played one of his famous matches here. A special mark of prestige was added by the visit of Princess Margaret, further strengthening Sveti Stefan’s status as one of the Mediterranean’s most exclusive addresses. It is also interesting that the characteristic pink sand color of the beaches comes from crushed shells and coral mixed with local stone, giving the area its recognizable visual identity.
An additional dimension is provided by the fact that the island is connected to the mainland by a natural isthmus — a rare geomorphological phenomenon in the Mediterranean that further contributes to its attractiveness. Today, under the management of Aman Resorts, Sveti Stefan is reviving its exclusive tradition by combining rich history with a contemporary concept of luxury tourism and complete tranquility.
After reopening on July 1st, guests will once again have the opportunity to experience the unique atmosphere of this location. With a long-standing reputation as a leader in wellness, Aman Spa within Aman Sveti Stefan offers a premium relaxation and recovery experience. Located in the private cove of Queen’s Beach, not far from Villa Miločer, this standalone facility overlooks the sea and is architecturally aligned with the nearby royal residence.
During the summer season, Queen’s Beach remains completely private for Aman guests, situated around an emerald lagoon and recognized as one of the most beautiful coastal areas in Montenegro.
King’s Beach, located beneath Villa Miločer, offers a picturesque stretch of pink sand between Queen’s Beach and the island, with full seasonal service.
Villa Miločer was once the summer residence of Queen Maria Karađorđević. This 19th-century villa occupies a privileged mainland position overlooking the Adriatic Sea.
The luxury hotel brand Aman Resorts will also be present in Žabljak. The project is already in an advanced phase of realization, and investors claim that the new Durmitor hotel will combine the authentic appearance of the former hotel with the most modern standards of luxury tourism. While fully preserving the exterior identity of the old building, the complex with 12 luxury villas and bungalows has been designed to blend almost invisibly into the natural surroundings of Durmitor and, once completed, could become one of the most exclusive mountain hotels on the European market.
The story of Hotel Durmitor has often been the subject of debate in recent years, but the facts show that this is one of the most ambitious hotel projects in northern Montenegro, which upon completion could become the most modern and luxurious mountain hotel in Europe.
The old Hotel Durmitor was purchased only at the 17th auction, after the previous 16 failed to attract a single interested buyer willing to pay even the offered price. According to insiders, this speaks volumes about the actual condition of the building, which had been deteriorating for years without adequate maintenance. According to people involved in the process, the structure was in such poor condition that potential investors were not even allowed to enter the hotel or approach it closer than a few meters because of the serious danger of collapse.
Although the new owners were under no obligation to preserve the appearance of the old hotel, they decided that the new project would fully retain the authentic exterior look of the former Durmitor. The new “Durmitor” hotel will represent an identical architectural replica of the original building, but with completely modern facilities and technologies. Special emphasis has been placed on integrating the complex into the natural environment of Žabljak and Durmitor, so the entire development has been carefully designed to harmoniously fit within the National Park area. The project also includes 12 luxury bungalows and villas surrounding the hotel, designed in accordance with the natural landscape and architectural heritage of the region.
Some of the world’s most renowned and expensive architectural firms are working on the project, while the prestigious Aman Resorts brand is once again planned as the hotel operator. Aman manages some of the world’s most exclusive hotels, including many properties located within UNESCO-protected zones. The project also includes a new Janu hotel, Aman’s luxury lifestyle concept which, according to investors, will bring a completely new dimension to mountain tourism in Montenegro.
However, construction was not halted immediately after the political changes in 2020, as was often speculated publicly. Work continued until the incident at Sveti Stefan, when a group of citizens led by then-Budva mayor Marko Carević forcibly removed a fence and entered the hotel beach area. Following this, Aman decided to close Sveti Stefan, stating that it could no longer guarantee the safety and privacy of guests. Construction on Durmitor continued for some time even after the closure of Sveti Stefan, until the company Sveti Stefan Hotels AD initiated arbitration proceedings against Adriatic Properties and Aman, after which the project was temporarily suspended.
So far, most of the structural construction works have been completed, with approximately five million euros already invested, while an additional investment of around 35 million euros is planned for the full completion of the project.
Architectural teams are currently working together with Aman on an additional revision of the project, as some technical solutions foreseen in the original plans have become outdated during the years of arbitration and delays. The goal is to implement the most advanced systems and technologies in the final phase in order to position the hotel among the top tier of European luxury tourism.
If completed according to plan, the new Hotel Durmitor could become one of the most prestigious mountain resorts in Europe and, according to investors, even more luxurious and modern than Aman’s famous hotel in Courchevel, France.