Slovenia's Kempinski Palace Portorož Hotel to join new franchise

The most distinctive landmark of the Slovenian seaside town of Portorož, the Kempinski Palace Portorož Hotel, will join a new franchise as the Kempinski hotel chain exits as the manager starting from the 2026 summer season.

The hotel owner, the Serbian MK Group, announced the decision following media reports that the staff had been notified of the development, CE Report quotes The Slovenia Times.

Apart from saying it was a "joint decision by the hotel owner and the management of Kempinski Hotels", it gave no reason why the partnership would end early.

The country's only hotel to boast a five-star superior rating has been managed by the Geneva-based hotel chain since 2008 when the it reopened after renovation.

At the time, Kempinski Hotels signed a 20-year management contract with the hotel's previous owner, Istrabenz Hoteli Portorož.

Name of new manager yet to be revealed

The name of the five-star hotel chain that will take over the Portorož hotel will be unveiled at the re-opening of the hotel under the new brand, MK Group said.

"We can confirm that the hotel, with its refreshed offering ... will consolidate Slovenia's place among the leading European destinations, all the while keeping up with the latest global hotel and tourism trends," the owner said via a PR agency.

While the owner would not say which franchise is to take over the hotel in the future, the commercial broadcaster POP TV has cited unofficial information in reporting it could become part of the Minor Hotels chain, which operates primarily in Asia and the Middle East and is now beginning to expand into Europe.

The newspaper Delo has meanwhile reported that MK Group is negotiating for the hotel to be taken over by the Thai luxury hotel chain Anantara.

Gem of Austro-Hungarian Empire

The owner said that during the transitional period, the hotel would continue to operate to the highest standards.

The luxurious hotel was built at the turn of the 19th century to become the largest hotel of the Austro-Hungarian Empire. It boasted top-of-the-line amenities and a variety of premises for socialising such as a reception room, a crystal hall as well as gentlemen's and ladies' salons.

Its splendour would later fade and in 1990 it closed down, falling into ruin until it reopened in 2008 following extensive renovation.

MK Group, at the time owned by the late Serbian businessman Miodrag Kostić, became the owner in 2015, when it acquired the hotel from Istrabenz Hoteli Portorož.

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Photo: Anže Malovrh/STA