Herceg Novi is a coastal town in Montenegro located at the entrance to the Bay of Kotor and at the foot of Mount Orjen. Herceg Novi is one of major Montenegrin tourist destination. It is well known as a spa and health center; nearby Igalo has an abundance of healing sea mud called and mineral water springs. Whilst the city itself is not a major destination for sunbathing with no long sandy beaches along the rest of the Bay of Kotor, many beaches are reachable by boat.
The existing Hotel Plaza can be found in Herceg Novi, at one of the most beautiful coastlines in Montenegro. One part of the hotel will be demolished, and the part of the hotel will be refurbished. An architectural project for a 4 or 5 star hotel is made. The new hotel will have a building surface area of 36 712.19 m2 with 266 units.