It is located just outside Herceg Novi off the main road in an area called Mlini. I only chanced on it.
This is the best two star hotel I've seen so far, but you do pay three star prices for it - £20 single including breakfast. It has been recently renovated to very good standard. Expensive looking furniture and a lovely shower cubicle. The hotel sits on the waters edge with a very pretty view over the tranquil waters of the bay, to the side there is a decent sandy beach, rare in this part of Montenegro.

My only issue is noise from pipes when someone turns a tap on, this was not a problem past about 12am. however if you are a light sleeper then it will wake you up at 6am.

Breakfast is plentiful consisting of a bread and jam and butter followed by a fry-up.
Dinner is a choice of fish or meat and is beautifully presented. about £6 to £8.
The staff are indifferent but helpful if pushed a little. One staff seems he would rather be somewhere else... more