"Korston group" bought Budva-based hotel "The Queen of Montenegro" - Russians move gambling business to Montenegro

(Hotel "The Queen of Montenegro")

- Russian "Korston group" became the majority owner of Budva-based hotel "The Queen of Montenegro" yesterday (July 6, 2009) - said Dragan Ivančević, the CEO of the Montenegrin company.

- The contract on procurement of 75% of stocks of the hotel was signed in Budva and it obliged "Korston group" to repay the Budva-based hotel company's loan of 37m EUR - said Ivančević.

- Remaining 25% of stocks of the hotel have remained in the posession of Budva's agency "Adriatic express". The representative of that agency will be the CEO of the company, while "Korston group" will take over the management - said Ivančević.

"Korston group", which owns hotel and casino in Moscow, has decided to move gambling business to Montenegro because gambling in Russia was declared as "damaging to Russian society" at the beginning of July.

Ivančević said that the contract on procurement of majority package of stocks also obliged "Korston group" to invest in expansion of hotel capacities.

The Budva-based hotel has 241 rooms and suites, restaurants, casino and congress halls, while the hotel can be expanded by additional 20,000 square meters.

Ivančević specified that "Korston group" would turn existing casino "into an entertainment center with games of chance".

He estimated that that arrangement would result in full hotel occupancy during the whole year, and he added that, at the moment, the Russian company had 6,000 clients from Russia who waited for the first charter flights to Montenegro.

Ivančević added that the negotiations with Montenegrin airliner "Montenegro Airlines" about establishment of charter flights from Italy and Israel were underway.

The authorized government organs of Montenegro estimated before they signed the contract that we should not fear what may accompany gambling business since, with good preparations and strict respecting of the Law, it can "supplement tourist offer and create new jobs".