Every tourism industry has a birthplace, and Montenegro's is an unassuming spot on the shore of the outer Bay of Kotor: a weathered old building beside the beach at Zelenika, a few kilometres east of Herceg Novi. This is Hotel Plaža, opened in 1902 — the first hotel on the Montenegrin coast, and the oldest hotel building in the country. Millions of overnight stays, an entire national economy of summer, trace their lineage back to this one house, a Hungarian entrepreneur, and a narrow-gauge railway line that no longer exists.
A man from Budapest on the Bay of Kotor
The founder of Montenegrin hotel tourism was not a local but a newcomer: Antal Mađar of Budapest, who came to the Bay of Kotor in 1895 in search of healing in its mild climate — and stayed. What he found at Zelenika was a green shoreline with a gentle beach on an Austro-Hungarian coast that was just beginning to discover the idea of the seaside holiday, as the Habsburg riviera around Opatija boomed further north. Mađar saw earlier than anyone that the Boka's combination of sea, mountains and winter sunshine could sell — provided people could actually get there.
The railway that opened the coast
The missing piece arrived in 1901, when Austria-Hungary completed a narrow-gauge railway line connecting Sarajevo, via Herzegovina and the Dubrovnik hinterland, to a terminus on the very shore at Zelenika. Suddenly the outer bay was plugged into the rail network of a great empire: a traveller could board a train in Vienna or Budapest and, with connections, step off practically onto the beach. Steamship lines from Trieste and Rijeka called at the bay's ports and completed the web. It is hard to overstate what this meant — before the railway, the Montenegrin coast was days of rough travel from anywhere; after it, Zelenika was a timetabled destination. The beloved little train, remembered across the region by its nickname Ćiro, hauled the coast into the tourist age, and a preserved carriage displayed in Zelenika still commemorates it.

The first hotel
Mađar was ready. In 1902, a year after the first train arrived, he opened Hotel Plaža — “Beach Hotel” — on the shore by the terminus. He designed the building himself, and at some 1,255 square metres it was the largest commercial building not just in the Boka but on the entire Montenegrin coast: a proper hotel in the Central European resort manner, standing where nothing of the kind had ever existed. Nor did he stop at bricks. In 1904 he published, in German, the first tourist guidebook to the Bay of Kotor and Montenegro — marketing the destination to the Austro-Hungarian public with the thoroughness of a man inventing an industry from scratch, because that is precisely what he was doing.
Antal Mađar died in 1909, only seven years after his hotel opened, and his son Adorjan inherited and carried on the business. The hotel survived the First World War, the end of the empire that built the railway, and the interwar kingdom, remaining in the family for nearly half a century.
Nationalisation and the long dispute
In 1949 the socialist authorities nationalised Hotel Plaža, and the Mađar family lost the property their founder had built. The building was converted into a closed children's holiday resort run by an organisation from Sarajevo, and disappeared from the public hotel trade. That Sarajevo connection cast a long shadow: after Yugoslavia's collapse, ownership of the building became the object of a protracted legal dispute between Montenegrin institutions and a Sarajevo-based company, a tangle that dragged through the courts for years. While lawyers argued, the first hotel of the Montenegrin coast stood shuttered and slowly weathering by its beach — periodically the subject of announcements that it would soon be restored to service, none yet fulfilled. The paradox is painful and very local: a country that lives from tourism has been unable, so far, to bring the birthplace of its tourism back to life.
What you see today
The building still stands directly behind Zelenika's beach, dignified in decay, its scale still legible — you can see at a glance that this was once the grandest thing on the coast. The railway is gone; its trackbed along the shore towards Herceg Novi became the coastal walking path, so the very route that brought the first guests is now the promenade locals stroll every evening. Between the old hotel, the Ćiro carriage and the sea, Zelenika packs the entire origin story of Montenegrin tourism into a few hundred metres.
Visiting
Zelenika lies at the eastern continuation of the Pet Danica promenade: follow the shoreline path east from Herceg Novi through Meljine and you reach the beach and the old hotel in around an hour of flat, sea-level walking. The building is not open to visitors and should be admired from outside, but the beach in front of it is public and the setting — palms, sea, Orjen behind — explains Mađar's choice instantly. There is nothing to pay and no ticket to buy; come in the late afternoon when the light softens the old facade, and raise a coffee at a nearby café to the man from Budapest who started it all.




