In 2021, a company owned by Artan Gaçi, a former MP, deputy of the Socialist Party and husband of Olta Xhaçka, the then minister for Europe and foreign affairs, obtained the status of ‘strategic investor’ from the Albanian government for the construction of a luxurious seaside hotel in the lucrative southern riviera, along with a 30-year lease for managing the adjacent beach area. The concessions prompted conflict of interest allegations against Olta Xhaçka, suggesting she benefited from public assets through her husband's investments. Despite a constitutional court's request to review the validity of Ms. Xhaçka's mandate, the parliament has ignored the ruling.

In March 2021, the strategic investments committee, which includes members of the council of ministers, granted AG.TCCSh.pk, a company owned by Artan Gaçi, the status of 'strategic investor' following his presentation of a project for the construction of a five-star hotel called Dreamades Luxury Suites in the Dhërmi, Municipality of Himara.

The Law on Strategic Investments, introduced in 2015, grants the status of strategic investor to projects with investments of over €5 million and employing at least 80 workers. The strategic investor status offers companies benefits such as streamlined administrative procedures and support in obtaining connectivity infrastructure. This instrument has faced criticism for being allegedly granted to politically connected persons.

Following the government concessions, the opposition Democratic Party, accused Olta Xhaçka of a conflict of interest and demanded the removal of her parliamentary mandate. They claimed that Xhaçka stood to indirectly benefit from state property through her husband's investment, thus breaching Article 70, point 3 of the constitution. This article prohibits MPs from carrying out profitable activities that originate from state or local government assets or acquiring property from the latter. The opposition further claimed that Xhaçka bore responsibility pursuant to Article 35 of the Law on the Prevention of Conflicts of Interest in the Exercise of Public Functions, which holds public officials accountable for the actions of related persons, such as spouses, in relation to the possession of shares or capital.

To deflect conflict of interest allegations, in June 2021, Artan Gaçi's company signed a cooperation agreement with AGTCC Hotel Management, owned by American citizen Tawni Lin Grzych-Sutton. According to the agreement, the new company assumed the strategic investment status and management responsibilities for the hotel and the beach, while Gaçi’s company retained the role of investor. Nonetheless, it was soon discovered that the American company was registered just five days before the agreement was signed, and that its owner, Grzych-Sutton, was the long-time partner of Minister Xhaçka’s brother and had no prior experience in tourism. Despite this, in March 2022, the council of ministers granted AGTCC Hotel Management the right to use the adjacent land and shore for a period of 30 years.

In response, the opposition proposed establishing a commission of inquiry to investigate the application of the Law on Strategic Investments by government authorities. However, the initiative was rejected twice by the socialist-controlled parliament, due to alleged procedural mistakes.

In October 2022, two reports were presented to parliament, one, drafted by the opposition, calling for the submission of the case concerning the validity of MP Olta Xhaçka's mandate to the constitutional court, and the other, from the socialist majority, opposing such action. In November 2022, the socialist majority in parliament approved their own report and dismissed the opposition's report, asserting that the case did not fall under the constitutional court's jurisdiction. In response, the opposition filed two motions with the constitutional court, seeking the court’s adjudication and the removal of Ms. Xhaçka's mandate.

In January 2023, the constitutional court issued a decision overturning the parliamentary majority's vote that had blocked the submission of Xhaçka's mandate case to the court. The ruling mandated parliament to send the case to the constitutional court for adjudication as the court asserted its sole responsibility for determining the validity of Ms Xhaçka's mandate and whether Article 70 of the constitution was indeed violated.

Following the constitutional court's decision, the Socialist Party appointed an expert to review it. However, the expert sided with the court's ruling and urged the assembly to enforce it, explaining that decisions regarding an MP's mandate should not be at the discretion of a parliamentary majority.

Despite the constitutional court's order, the socialist majority continued to disregard the ruling. In February 2024, the head of the constitutional court, Holta Zacaj, stated that court rulings are final and must be implemented, adding that parliament's refusal to comply is unprecedented. In April 2024, the ruling socialists voted again to reject the constitutional court's review of MP Xhaçka’s mandate. Ms. Xhaçka accused the media of defamation and denied leveraging her influence for personal profit.

In September 2023, concurrently with these developments, Fredi Beleri, former mayor of Himara, filed a criminal complaint with the special prosecution against organised crime and corruption (SPAK) against Jorgo Goro, the acting mayor of Himara. Beleri accused Goro of forging documents to facilitate the transfer of significant areas of state land to Artan Gaçi’s company. The same land was used for Gaçi’s 5-star hotel complex. In October 2023, SPAK questioned both Gaçi and Goro about the disputed properties as part of its investigation and seized property owned by Gaçi. In March 2024, Goro was arrested for alleged abuse of office, on suspicion of illegally transferring state land to private individuals. He denied the allegation.

In September 2023, Olta Xhaçka was removed as minister for Europe and foreign affairs in a government reshuffle aimed at replacing ministers implicated in corruption allegations, although she retained her parliamentary mandate. While the ruling majority has thus far refused to comply with the constitutional court's order, the outcome of SPAK’s investigations into the case of Artan Gaçi's hotel is still pending. This case has exposed nepotistic and clientelist networks within Albania’s government and raised additional questions about the application of the Law on Strategic Investments.