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GV PAN Sveti Stefan beach, town houses in background
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GV Gardens and walkways, mountains in background
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GV PAN Front of house where Prince Charles and Lady Diana are to stay, PAN TO gardens and surrounding walls (2 shots)
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TV PAN FROM Gardens TO swimming pool (2 shots)
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GV Balcony with umbrellas and tables, overlooking Adriatic
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SV Waiter entering house
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SV Windows with wooden shutters
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SV INTERIOR PAN FROM Stairs TO landing
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CU Twin beds pulled together in hotel room
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SV Furniture in lounge
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SV Dining room including tv set
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GV View from bedroom window overlooking mountains
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GV Yacht sailing out of Sveti Stefan
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GV PAN FROM Visitors walking on beach wall TO sunbathers on beach
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Script is copyright Reuters Limited. All rights reserved

Background: INTRODUCTION: Millions of people all around the world are looking forward to one of the biggest regal occasions for many years. Heir to the throne Prince Charles will marry Lady Diana Spencer surrounded by all the pomp and splendour that the British monarchy can muster. The ceremony in St. Paul's Cathedral London on 29 July will be watched by up to 500 million people worldwide. Afterwards, the royal couple are expected to head for a secluded honeymoon location in the sun.

SYNOPSIS: Many newly-wed couples dream of spending their honeymoon in luxurious and exotic surroundings. For Prince Charles and Lady Diana, the dream honeymoon is rumoured to be here in the Adriatic.

This house in the exclusive Sveti Stefan resort near Budva, Montenegro, is reported being prepared for the couple's arrival. It is probably the most luxurious of the homes in this village hotel complex, regarded as a hide-away playground for the rich and influential.

The Sveti Stefan peninsula resort has beautiful gardens, swimming pools, restaurants, nightclubs, sun, sea and sand. Previous visitors have included film star Sophia Loren and her famous film director husband, Carlo Ponti.

Guests are looked after by a staff of 113 waiters and other personnel. Renting a house can cost anything up to $500 (about GBP250 sterling) for one night. Inside, the furniture and fittings are a mixture of old and new. Lounges are cosy and ideal for a quiet evening of relaxation.

Houses, secluded from each other have dining rooms. Views from bedroom windows up to the rolling mountains of Montenegro Republic are breathtaking. The beaches are among the best in the world. Buckingham Palace officials have not said officially that the royal couple will visit here. But a spokesman for the Yugoslav resort said they were expected.