Jabučko Ravnište like Sierra Nevada – Serbia and its international partners started realization of EUR 60m worth of investments in tourist complex on Stara Planina mountain

The first four hotels in modern ski center on Stara Planina mountain will be built by the end of 2011 and they will be run by leading Spanish hotel chains HG Hotels and Sol Melia. The Republic of Serbia and international investment fund Sigma Capital are going to set aside between 50 and 60 million euros in the first phase for investments in the tourist complex in the location of Jabučko Ravnište. The complex should have about 500 beds once the first phase is completed. The plan is that, for start, the whole complex on Stara Planina mountain comprises 6 hotels with 900 beds, while realization of investments in ski infrastructure is planned to run parallel to construction of facilities. In addition to existing two ski lifts, another two four-seat lifts and the first gondola in Serbia should be built prior to end of 2011.

Construction of hotels commenced in late July, while agreements between HG Hotels and public company Stara Planina, and international fund Sigma Capital, Sol Melia and Serbian Ministry of Economy, were officially signed on July 30th.

According to the first agreement, public company Stara Planina will build three hotels with total of 450 beds (150 accommodation units) by the end of the next year, and they will be in the possession of the Republic of Serbia. These facilities will be operating under the HG Hotels brand and they will have four stars. For minimum five years, HG Hotels will be running the hotels by the model of operational management and providing consulting services.

According to the second agreement, public company Stara Planina and Sigma Capital will form a joint venture. Land and infrastructure will be provided by public company Stara Planina, while Sigma Capital will finance construction of three facility. These hotels will be run by Sol Melia, and the Republic of Serbia will have a share in the profit made by the joint venture.

Serbian Minister of Economy Mladjan Dinkic announced that about 500 beds would be ready for the season 2011/2012.

- All hotels will have four stars and they will be open during the whole year. They will include wellness centers suitable for congress tourism. Reconstruction of the road from Svrljig to Jabucko Ravniste, via Kalna, and the road from Pirot to Stara Planina is in the pipeline, which should also contribute to development of the airport in Nis. Underground garages will be built by the end of this year, while another two ski lifts and the first gondola in Serbia will be finished by the end of 2011. There will be 20 kilometers of new ski tracks, 10 of which will be covered by artificial snow - said Dinkic and added that the land expropriation had been finished and that all building permits had been granted.

- The fact that the hotels will be run by two large Spanish hotel chains, which run hotels in many countries of the world, means that we can count on foreign tourists and huge inflow of foreign currencies - said Dinkic.

He added that Spain had never before invested in the tourism in Serbia and expressed satisfaction with the fact that the companies from that country had decided to participate in realization of the investment on Stara Planina mountain, situated in the least developed part of Serbia.

- Stara Planina will be to Eastern Serbia what Zlatibor mountain is to Western Serbia and Kopaonik mountain to Central Serbia - Dinkic assessed.

The Minister of Economy added that the job on the tender for construction of the hotels financed by public company Stara Planina had been given to domestic company Deneza.

Stara Planina (Old Mountain) - New experience

Sol Melia is the world's leading holiday resorts operator and one of the world's three largest hotel chains. It currently runs over 300 hotels in 30 countries (operating under several brands), and it exists for more than 50 years. Spanish company HG Hotels has over 2.5 decades of experience in the hotel and suite industry. It owns and runs hotel chains and suite complexes in the most famous tourist destinations in Spain, including Canary Islands, Tenerife, Sierra Nevada, La Molina, etc. International investment fund Sigma Capital Management has, so far, built four resorts in Bulgaria, at total surface of about 260,000 square meters, and invested over 150m euros in the economy of that country in that way.

Stara Planina mountain occupies the surface of 3,985 square kilometers. It is situated on the territory of four municipalities - Zajecar, Knjazevac, Pirot, and Dimitrovgrad. The highest peak is Midzor - 2,169 m. Stara Planina is one of the most attractive tourist areas in Serbia and it has the status of national nature park. There is only one hotel with 100 beds on Stara Planina mountain at the moment, that is, on Babin Zub peak. It is owned by the Electric Power Company of Serbia (EPS). Pirot-based Tigar and EPS are pioneers in the tourism development.

T.S.