The “Átlátszó Vajdaság” website published an article last year detailing the construction of a wine, wellness, and conference hotel in Sremski Karlovci, which received a HUF 2.85 billion subsidy with the support of the Hungarian Export Promotion Agency “HEPA”. Since then, additional support of HUF 1 billion has been received for the realization of the investment.
A five-star hotel complex is being built in Sremski Karlovci, the central settlement of the historic wine region of Srem, next to the Danube. The builder is “Szeremsegi Ingatlanfejleszto” Ltd. (SR) (Society for Real Estate Development in Srem), i.e. its eponymous owner from Hungary, who received funding for the project at the invitation of the “HEPA” agency for investment support in the Western Balkans in 2019.
The hotel is classified as a significant investment of the Republic of Serbia, which greatly facilitated licensing. Construction began in March 2023, and completion is expected by the end of 2024. However, compared to the original plans, a smaller hotel is being built.
The hotel in Sremski Karlovci received twice as much support as the other projects in total
According to the first results of the competition, the hotel project of “Szerémség Ingatlanfejelsztő” Ltd. (HU) won the entire amount of funds that the donor had originally earmarked for all program applicants. In parallel with the publication of the results of the competition, the “HEPA” agency announced in a press release that it had increased the budget, thus allocating a total of HUF 9.09 billion to support the investments of the nine winning candidates.
After some time, the “HEPA” agency revised the list of winners. Three of the original nine winning applicants were completely removed, but it was not yet clarified what would happen to the unused HUF 4.25 billion. The initially granted non-refundable subsidy of HUF 2.85 billion remains allocated to “Szerémség Ingatlanfejlesztő” Ltd. (HU) (at the average 2019 exchange rate of 325 HUF/€, equivalent to HUF 8.7 million).
However, the currently available version indicates a different amount, stating that
“Szerémség Ingatlanfejlesztő” Ltd. (HU) received support totaling HUF 3,858,135,462.
With this nearly HUF 4 billion (approximately €10 million) sum, the hotel project received nearly double the support compared to the combined total of the five remaining applicants in the competition.
The spatial plan of Sremski Karlovci was adapted to the construction of the hotel
The tourism potential of Sremski Karlovci was acknowledged as early as 2018 by the Central European Service for Cross-Border Initiatives (CESCI Balkans). In a strategic study on tourism, the organization identified Sremski Karlovci as a region with significant tourism prospects.
The study was commissioned by the “Prosperitati” Foundation, which was founded in 2016 on the initiative of the Alliance of Vojvodina Hungarians (VMSZ). We previously wrote about the relationship between the party and the foundation here. The VMSZ’s interest is further evidenced by their intervention, resulting in the adoption of a law by the Belgrade Parliament in 2021.
This legislation focuses on the restoration of cultural and historical heritage and promotes the development of Sremski Karlovci.
The draft law was introduced by the Provincial Parliament of Vojvodina, then led by István Pásztor, the former head of the VMSZ, who has since passed away.
However, in order for the hotel to be built on the planned location and in the planned form, the General Regulation Plan of Sremski Karlovci had to be amended. The new General Regulation Plan, adopted in July 2021, now includes provisions allowing “Szerémség Ingatlanfejlesztő” Ltd. (HU) to construct a P-P+3 building for its hotel complex. Additionally, the map outlines the anticipated public infrastructure works necessary to facilitate the approval of the hotel’s location conditions.
The Republic of Serbia classified the investment among significant projects
According to our latest information, the hotel project covers eight plots with a combined area of 45,055 square meters. The owner now has access to two streets, enabling entry from the northeast side, which is closer to the city center.
According to the cadastral classification, the parcels are a mix of fields and vineyards. Per Article 88, paragraph 5 of the Law on Planning and Construction, the investor must requalify the land and pay a fee before obtaining a building permit if the area was not originally designated as construction land. However, under paragraph 6 of the same article, the investor is exempt from this fee if the urban plan mandates a change in land use.
In order to confirm this, by the conclusion of the Government of Serbia dated November 25, 2021, the construction of a five-star hotel in Sremski Karlovci was classified among the projects of importance for the Republic of Serbia, and therefore
“Szeremsegi Ingatlanfejleszto” Ltd. (SR) is largely exempt from paying fees and taxes.
The launch of the hotel project in Sremski Karlovci went downhill
The builder of the hotel in Sremski Karlovci is “Szeremsegi Ingatlanfejleszto” Ltd. (SR), a subsidiary of “Szerémség Ingatlanfejlesztő” Ltd. (HU), which was founded in 2019, a day before the announcement of the tender for investment support in the Western Balkans.
Zsanett Oláh, the former head of the Hungarian National Chamber of Commerce (MNKH), which preceded the “HEPA” agency, was contracted with the “HEPA” agency through her company, “Földszint1” Ltd., during the preparation of the development program in the Western Balkans. After the end of the contract, Zsanett Oláh became the executive director of the company “Szerémség Ingatlanfejlesztő” Ltd. (HU), which was awarded significant financial resources in the same competition.
The majority owner of “Szerémség Ingatlanfejlesztő” Ltd. (HU) is “HO-ME 2000” Ltd., with György Nagy being the ultimate owner through “Westbay” Ltd.
György Nagy is regularly on Forbes’ annual list of the 50 richest Hungarians: his wealth was last estimated at HUF 47.6 billion (€123 million). He is “one of the key and regular business partners of the president and CEO of OTP bank, Csányi Sándor, and many consider him one of the most important economic partners of the leader of OTP.”
The final owner of the hotel project in Sremski Karlovci was recently disclosed in an extraordinary announcement regarding the “transaction of persons performing managerial duties” issued by OTP Bank at the end of March 2024. This announcement revealed that “Westbay” Ltd. purchased bonds issued by OTP Bank, with a nominal value of $1.5 million. The owner of “Westbay” Ltd., György Nagy, also serves on the board of directors of OTP Bank.
Text: Gyurkovics Virág, Átlátszó Vajdaság
Data visualization: Szabó Krisztián, Átlátszó, Dancsó Andrea, Átlátszó Vajdaság