Tourist Resort Canavia Mikulići

On the south-facing slopes below the village of Mikulići, at the crossroads of roads leading to the Airport, Prevlaka and Molunat, the county spatial plan foresees the construction of a modern tourist park-settlement that will enrich the tourist offer of Konavle with planned facilities.
At the proposal of the investor, the company Turističko naselje Canavia d.o.o., a tourist zone has been established in Mikulići with a total area of 233.5 Ha, of which 13.5 Ha is designated for hospitality and tourism purposes for the construction of accommodation facilities (high-category hotels and villas, 4* and 5*), with an accommodation capacity of 1200 beds.
The remaining 220 Ha refer to the area designated for sports and recreational purposes.

The company Turističko naselje Canavia doo, Tourist Resort Canavia Ltd., in the capacity of an investor, finances the preparations and construction of the Resort Canavia, with the participation of several individuals as co-investors, based on condo financing and business models.
One of the contemporary trends in the financing of hotel development worldwide is the construction of hotels, villas, and apartments, often collectively referred to as a condo hotel.
In the world, the term “kondo” is commonly used for co-ownership property which comprises multiple independent units, or stratified units with associated land owned by different strata owners.
Resort Canavia, consisting of hotels, villas, and apartments, is a complex of accommodation capacities with multiple co-ownership parts, or more stratified units with land owned by different owners, forming a condo hotel and a single functional entity, i.e., one business entity.
The investor and co-investors are partners in the condo model of financing and operation, and their partnership is formalized through a condominium agreement.
By signing the condominium agreement, the investor and co-investors simultaneously conclude the sale of the accommodation unit and a long-term business cooperation in using and managing the unit as a business object, where the investor is the seller, and the co-investor is the buyer of the unit.
In case of a condo hotel under construction, there is one investor and multiple co-investors, where the investor owns one part of the accommodation units, and the remaining units are sold to co-investors who become stratified owners of the units.
The condo hotel is a functional whole, i.e., a single business entity regardless of the presence of multiple stratified owners of units.
To reduce investment risk, the investor stratifies and sells the accommodation capacity to the co-investor.
The investor retains the management of the hotel’s operations as a whole.
Thus, the buyer of the accommodation unit becomes a co-investor or a long-term business partner.
In the condo business, the investor – seller and the co-investor – buyer conclude a condominium agreement, simultaneously agreeing on the purchase-sale and long-term cooperation, defining their future relations in the use and management of the accommodation unit as a business object.
Regarding the use of stratified accommodation units, the buyer, or new owner, may retain the right to use it, for example, 2–3 weeks a year.
Concerning the management of the accommodation unit, the buyer or stratified owner hands it over for management to the seller or investor.
It is common for the condo hotel to remain under the investor’s management when the investor wants to be a “hotelier”.
Otherwise, the investor may contract management with a company that provides management services (an example in Croatia: Vrtovi Sunca in Orašac).