Herceg Novi - Five Nights Herceg Novi is a coastal town in Montenegro located at the entrance to the Bay of Kotor and the foot of Mount Orjen. I really love how they have incorporated sculptures into the old part of the town. Do yourself a favour and avoid the newer area with all the below-average restaurants, instead stick to the old town area. It's not a huge old town, but there are enough nice bars, restaurants, shops and places to sit and enjoy a coffee and people watch. The beach near the old town is a very nice place to relax.