1. PROJECT TITLE

REVITALIZATION AND CONVERSION OF THE FACILITY WITHIN THE “MLAKVE” SPORTS AND RECREATION CENTER INTO A MULTIFUNCTIONAL HOSTEL AND HOSPITALITY COMPLEX

2. SECTOR

Commercial and Service Activities, Tourism and Hospitality / Sports and Recreation

3. LOCATION

Novi Grad, 3 km from the town centre in the direction of Bihać, located on the banks of the River Una. The facility is positioned directly on the riverbank, within the boundaries of the Una Nature Park.

4. BRIEF PROJECT DESCRIPTION

The project involves the comprehensive reconstruction and conversion of an existing facility within the “Mlakve” Sports and Recreation Center in Novi Grad into a modern, multifunctional hostel and hospitality complex. The property is owned by the Municipality of Novi Grad and is available to potential investors through either direct purchase or long-term lease.

The total floor area of 1,284.25 m² is divided into three functional blocks designed to accommodate tourists, sports teams, and event attendees.

The “Mlakve” complex features the “Sloboda” FC stadium with a seating capacity of 6,000, tennis courts, supporting sports facilities, and dedicated parking. Situated directly on the banks of the Una River within the “Una” Nature Park zone, the location offers exceptional natural and recreational advantages, ensuring year-round tourist appeal. The reconstruction will provide high-standard hostel accommodation, full-service restaurant facilities, and additional commercial capacities.

5. PROJECT DETAILS

The project offers an investment opportunity for the development of a modern hostel and hospitality complex aimed at enhancing tourism and expanding sports and recreational facilities in Novi Grad.

Basic information about the facility:

  • Year of construction: 1985
  • Floors: Ground floor + 2 floors
  • Total area: 1,284.25 m²
  • Ownership: Municipality of Novi Grad

Technical condition and adaptation needs:

The structure is in stable condition; however, a full reconstruction is required, including replacement of installations, carpentry, flooring, sanitary equipment, and interior spaces to meet modern accommodation and hospitality standards.

Expected project outcomes:

Following adaptation and revitalization, SRC “Mlakve” would be able to provide the following hospitality services:

  • Restaurant area: 542 m²
  • Accommodation units / rooms with bathrooms: 249 m²
  • Additional accommodation facility: 493.25 m²

The project enables investors to develop a commercial hostel and hospitality complex with year-round operational potential, attracting tourists, sports teams, and event visitors, while ensuring sustainable revenue through accommodation and hospitality services.

5.1. WHAT TYPE OF PROJECT IT IS?

The project represents a brownfield investment, involving the revitalization and adaptive reuse of the existing facility within the Sports and Recreation Centre “Mlakve” into a modern, multifunctional hostel and hospitality complex.

5.2. PROJECT STATUS

The project is currently in the pre-investment preparation phase. The facility is owned by the Novi Grad Municipality and is available for purchase or long-term lease. A preliminary assessment of structural stability has been conducted, and required adaptation works for installations, carpentry, flooring, and sanitary equipment have been identified. The location, together with supporting infrastructure (parking, sports facilities), provides strong potential for rapid commercial exploitation following project implementation.

5.3. REASON TO INVEST IN PROJECT

The project offers a clear and secure investment opportunity based on the following factors:

  • Attractive location: The facility is situated on the banks of the Una River, within the Una Nature Park, just 3 km from the center of Novi Grad, with access to local infrastructure and supporting sports and recreational amenities.
  • Brownfield advantage: Utilizing an existing structurally stable building reduces costs and shortens adaptation timelines compared to new construction.
  • Commercial potential: The development of hostel accommodation (20–40 beds), restaurant services, and supporting facilities enables year-round revenue generation.
  • Tourism and sports development: The project enhances the local tourism offering and attracts both domestic and international tourists, sports teams, and event participants.
  • Long-term investment sustainability: Potential for stable returns through commercial exploitation with minimal risk, offering options for long-term lease or purchase.
  • Local economic stimulation: The project creates new jobs and encourages the development of ancillary services in tourism and hospitality.
6. PROJECT FINANCING

6.1. ESTIMATED PROJECT VALUE IN EURO

The estimated project value is approximately €1,200,000 – €1,500,000, covering the costs of complete building adaptation, reconstruction of installations, carpentry, flooring, sanitary equipment, and interior furnishings, as well as equipping the restaurant and accommodation facilities.

This estimate is based on market prices for similar projects in the region and takes into account the site’s location advantages and the commercial potential of the complex.

6.2. PLANNED SOURCES OF FINANCING

Project financing is planned through a combination of capital sources to ensure investment stability and sustainability:

  • Private investments: The primary source of financing, covering the costs of building adaptation, reconstruction of installations, carpentry, flooring, sanitary equipment, interior furnishings, and the outfitting of the restaurant and accommodation facilities.
  • Tourism and infrastructure support programs: Potential grants, subsidies, or incentives at the local and national levels aimed at projects in the tourism, hospitality, and sports-recreational sectors.
  • Commercial financing: Includes bank loans or investment credits, with the possibility of a structured repayment plan aligned with the projected revenue from the complex’s operation.

6.3. INPUTS BY LOCAL PARTNER

The Municipality of Novi Grad provides comprehensive and systematic support to potential investors at all stages of project implementation. The municipal administration is fully available 24/7 to offer professional assistance in obtaining building and occupancy permits, company registration, securing all necessary approvals, and ensuring compliance with applicable urban planning and environmental regulations.

Key inputs from the local partner include:

  • Ownership and legal support: Ensuring the investor’s right to use the facility, with options for long-term lease or purchase, and assistance in obtaining all permits required for adaptation, reconstruction, and commercial operation.
  • Local infrastructure and capacities: Continuous access to road, utility, and energy infrastructure, parking spaces, and integration with the sports and recreational facilities of the “Mlakve” complex, providing a fully operational context for commercial activities.
  • Strategic and administrative support: Active collaboration in all procedures related to permit acquisition, alignment with urban plans, environmental standards, and spatial planning laws, including administrative assistance and professional logistics for promoting the project locally, regionally, and nationally.
  • Commercial and business support: Guidance in defining a commercial business model, developing the hostel and hospitality concept, marketing strategies, and attracting target segments such as tourists, sports teams, and event participants.
  • Financial and regulatory incentives: Reduction of municipal fees, subsidies for process improvement and modernization, accelerated procedures for issuing permits for entrepreneurial and business entities, and incentives for employment and business development.
  • Institutional credibility and quality standards: Presence of the Economic Council as a platform for formal dialogue with the private sector, implementation of ISO 9001:2015 for public service quality management, and possession of the Business Friendly Certification South East Europe (BFC SEE), demonstrating a favorable business environment.

These inputs provide full professional, technical, administrative, and commercial support, minimizing investor risk and enabling a rapid, efficient, and sustainable launch of commercial operations while simultaneously enhancing the economic potential and return on investment.

6.4. INPUTS BY INVESTOR

The investor provides the key resources and strategic expertise necessary for the complete implementation of the project:

  • Financial resources: Covering the costs of adaptation and reconstruction of the facility, including installations, carpentry, flooring, sanitary equipment, interior spaces, as well as equipping the restaurant and accommodation units.
  • Professional and managerial expertise: Planning, supervision, and coordination of works; financial and operational project management, including the definition of investment strategy and business model.
  • Technical and organizational resources: Selection and engagement of contractors, implementation of quality standards, coordination with the local partner and relevant authorities to ensure compliance with regulatory and urban planning requirements.
7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED

The project is planned for implementation within the Sport and Recreation Center “Mlakve,” located on the outskirts of the city, approximately 3 km from the center, directly on the bank of the Una River and within the boundaries of the Una Nature Park. The facility is situated in a location with high tourism potential and access to existing local infrastructure, including roads, parking, and the sports and recreational amenities of the complex.

8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED

At this stage, project implementation activities have not yet commenced. The project is currently in the preparation phase, which includes finalizing the investment profile, defining strategic plans for the building’s adaptation, and securing all legal and regulatory prerequisites for execution. Potential investors can actively participate in the planning process from the outset, allowing project solutions to be tailored to their commercial and operational strategies.

9. PROJECT APPLICANT AND CONTACT INFORMATION

NOVI GRAD MUNICIPALITY
Development Management Department
Address: Petra Kočića 2, 79220 Novi Grad
Phone/fax: +387 52 720-466, 720-901
Contact person: Vesna Djukanović
E-mail: vesna.djukanovic@opstina-novigrad.com
Web: www.opstina-novigrad.com