Abstract
This paper presents an authentic approach to the reactivation of valuable architectural heritage through the transformation and adaptation of the late-medieval fishing settlement into the town-hotel Sveti Stefan, which represents a tourism brand of Montenegro on the eastern Adriatic coast. The study shows the process of converting, usage throughout history, and the challenges and potential that Sveti Stefan holds today. The results of the analyses provided a foundation for defining criteria to assess the value of this site, which represents the significant cultural heritage, allowing for a comprehensive examination of scenarios for the transformation and development of Sveti Stefan. The goal was to establish a unique and flexible model of sustainable development with the aim of ensuring active and continuous utilization of the architectural heritage.
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