A Town -hotel Sveti Stefn, situated nine kilometers east of Budva, was build in 1955, by reconstructing an old fishermen’s settlement.

The fishermen sought refuge from the Turkish raids on the rocky island in the 15th Century. The resources for building houses and defense walls were provided from the looted Turkish ships anchored off Jaz Beach near Budva.

There are three churches in this little town, which was named after the one at the highest altitude dedicated to St.Stephen. Today it is one of the most exclusive places in the Adriatic.

It is also famous for its sandy beach (1770meters long), on the both sides of an artificial isthmus which connects the island which the mainland.