Banyan Tree's first European resort isn't in Italy, France, or Greece. It isn't even in Croatia, the neighboring Adriatic destination that has long dominated international tourism. Instead, the Singaporean luxury hotel group has made its European debut in Montenegro.
At first glance, it seems an unexpected decision. While Montenegro is well established among European holidaymakers, it has yet to achieve the same level of recognition in the US or Asia. But since gaining independence from Serbia in 2006, the country has made tourism a cornerstone of its economic strategy, with a particular focus on luxury.
"We want to position ourselves as a quality tourist destination, with high-quality services and accommodation," Montenegro's Minister of Tourism, Simonida Kordić, told Euronews. And so they have. Government-backed developments include superyacht marina Porto Montenegro and Luštica Bay, both of which have attracted international investment, while one of the Mediterranean's most yacht-friendly tax regimes – including duty-free fuel for qualifying vessels and flexible regulations for non-EU yachts – has helped establish the country as a stop on the superyacht circuit.
The strategy appears to be paying off, with reports of Jeff Bezos, Beyoncé, and Barack and Michelle Obama all passing through the country’s waters. Tourism accounts for roughly a quarter of its GDP, and Montenegro now welcomes around 2.5 million visitors each year, an impressive figure for the eighth smallest country in Europe. Property prices have also continued to climb, with double-digit growth recorded last year, while Montenegro pushes to join the European Union by 2028.
Opinions among travel advisors regarding whether there is demand from UHNWIs, however, remain divided.
Stuart McNeill, founder of members' club and travel concierge Knightsbridge Circle, believes Montenegro has yet to establish itself as a true ultra-luxury destination. McNeill recalls getting occasional travel interest from clients, but only for a 'fly and flop' holiday tied to Aman Sveti Stefan, One&Only Portonovi, and The Chedi Luštica Bay. "We will sometimes facilitate a yacht charter as part of this, but really that is where the interest begins and ends."
For Christina Seredzinsky, founder of luxury travel concierge Séntire, it is Montenegro's obscurity that actually fosters appeal among her curious clients. "Our clientele tends to have already 'done' the obvious luxury circuits, and they're actively seeking new experiences and the new emotions that come with them," she says.
"Montenegro fits that appetite perfectly. Geographically and climate-wise, it sits comfortably alongside Croatia, Italy, and Greece, but culturally it's still unfamiliar territory for most luxury travelers – and that novelty is a huge draw."
She believes the country's growing collection of luxury hotels is only strengthening that appeal. "The reopening of Aman, alongside names like One&Only Portonovi, Siro Boka Place, and Banyan Tree's Mamula Island, means Montenegro now works both for travelers who choose by destination and those who choose by property. That's a nice overlap that not every emerging destination can claim."
Montenegro's luxury ambitions have not been without controversy. The reopening of Aman Sveti Stefan this summer follows a five-year closure after residents protested the privatization of beaches they had historically been free to use. Following an agreement between the Montenegrin government and leaseholder Adriatic Properties, Aman has now reopened, with compromise.
And if Aman exposed the tensions between luxury tourism and public access, Mamula Island raises a different question altogether. The distinct 19th-century fortress has a dark past, having served as an Italian concentration camp under the regime of Mussolini during World War II. Its conversion into a luxury hotel, even pre-Banyan Tree, has consistently drawn criticism from former prisoners’ families, historians, and human rights organizations, who would rather the site be devoted in its entirety to the public, and to commemorating its past. The developers and the Montenegrin government have defended the Banyan Tree project, arguing that private investment was the only viable way to preserve the deteriorating fortress and make it accessible to visitors (well, UHNW visitors).
Whether Mamula Island represents thoughtful preservation or an uncomfortable commercialization of a place of suffering is ultimately a question each visitor that chooses to stay there will answer differently. And it is impossible to review the hotel without acknowledging that complexity, because the island's history shapes the experience from the moment it comes into view.
Stay
For guests who know little about Mamula Island's history before arriving, they would see something entirely different upon arrival: a spectacular fortress hotel rising from the Adriatic, with stonework, courtyards and one of the Mediterranean's most striking settings. But once you understand what these walls once held, it becomes impossible to experience the property as simply another luxury resort.
A memorial room dedicated to the island's wartime history remains following Banyan Tree's takeover, but whether that is sufficient has been the subject of ongoing criticism.
Unlike the hospitality group’s first resort in Phuket, which was built from the ground up, Mamula Island is first and foremost a protected heritage site, and remains government-owned. The hotel occupies a historic 19th-century fortress, and Banyan Tree acts more as custodian than creator.
The restoration is intentionally restrained. Because of the site's protected status, everything added by the hotel must be reversible (and rightfully so). Even electrical cables and plumbing have been run externally before being carefully concealed, allowing the original stonework to remain largely untouched.
The island itself is compact, just 650 ft in diameter, so the hotel is host to just 32 rooms and suites. Interiors pair oak, brass, and woven textiles with the fortress's exposed limestone, resisting the temptation to overdesign the spaces and instead using the natural curves of the circular structure to create something unique.
For staying guests, options to arrive include boat or helicopter; I flew into Dubrovnik, crawled across the Croatia-Montenegro border by car, then caught a 40-minute speedboat, flanked by dolphins. A small jetty and neat pebble beach, dotted with sun loungers, welcome guests before a winding path leads across the drawbridge and through the thick limestone walls.
The premium accommodations occupy the fortress tower. Sky Suites include private saunas, while the Panoramic Suite sits at the very top, its expansive terrace offering uninterrupted views across the Bay of Kotor – and the best seat on the island for sunset.
Dine
Mamula Island is home to three restaurants, each no more than a minute's walk from the next. For lunch, I favored Parasol, a space set beside the outdoor pool in the center of the fortress. The menu is built around crudo, with sharing plates of local seafood cured and smoked in-house served alongside fresh Adriatic catches.
Breakfast is served at Kamena, which also opens for lunch and dinner. The dining room takes cues from the interior of a ship, with a long horizontal window framing the opposite coastline, and the outside terrace offers the opportunity to enjoy a slow breakfast on small tables atop the property’s walls.
Celeste is the resort's only restaurant outside the fortress walls. Perched at the water's edge, it offers a relaxed setting for Mediterranean-inspired dishes, enjoyed to the sound of the sea waves below.
Across the three venues, the food is consistently delicious and innovative, led by executive chef Marija Bešović, whose enthusiasm for Montenegrin produce and traditional recipes is evident throughout the menus, though it is worth noting that, even at limited capacity, wait times at each restaurant were long, so it’s worth allowing extra time when dining.
The biggest surprise was Pinea, the hotel’s tiny vinyl and cocktail bar, tucked into one of the old stone rooms. Several nights a week, a local record collector makes the boat journey over carrying crates of vinyl. Rather than DJing, he simply selects records one by one, letting each play in full before choosing the next. Behind the bar, cocktails happily stray beyond the menu, and by the end of the evening, strangers were sampling and sharing shots of rakija – the local fruit brandy, most commonly distilled from plums.
Relax
The spa occupies the ground floor of the fortress tower and is home to treatment rooms, a flotation pod for weightless therapy, and a series of thermal spaces. Rather than following a rigid menu, the therapists will tailor treatments to individual needs. Even if you're traveling solo, ask for a couple’s room – it has the best view in the spa, looking straight out over the Adriatic.
Beyond treatments, the spa runs a program of complimentary wellness sessions. During my stay, this included a gua sha workshop, where guests are guided through lymphatic massage techniques using Banyan Tree's skincare products. Throughout the season, the program expands with visiting practitioners, including yoga instructors, sound bath practitioners, and mindful movement coaches.
Explore
Mamula's position at the entrance to the Unesco-listed Bay of Kotor makes it an excellent base for exploring the Montenegrin coast. One of the biggest advantages is early access to the Blue Cave. Promoted in almost every coastal town, it's one of Montenegro's most popular attractions, but by mid-morning the glowing blue grotto is usually packed with tour boats. Setting off by speedboat at 7:30 am, I arrived before anyone else to an entirely empty cave.
The resort's boat – or a larger speedboat – can also be chartered to explore the rest of the bay, from the baroque town of Perast to the twin islands of Our Lady of the Rocks and Saint George, as well as the Unesco-listed old town of Kotor. Ensure the hotel enlists the help of a local guide – the bay holds 5000 years of history worth exploring.
Your time could equally be spent moving between the private beach, lying by the pool deck, and making the most of the spa. But for all the property's luxury amenities and natural beauty (of which there is an abundance), the uncomfortable truth of the island’s past still lingers, and remains largely unconfronted by its new custodian.
