Buying a Hotel in Croatia: Essential Checklist

Published on September 29, 2025 and written by Cyril Jarnias

Buying a hotel in Croatia may seem like an ambitious but extremely rewarding project. This picturesque country, with its stunning coastal landscapes and rich cultural heritage, attracts millions of tourists each year, offering a lucrative opportunity for investors seeking profitability in the hospitality sector.

However, embarking on such a project requires meticulous preparation and in-depth knowledge of local regulations. This guide provides a comprehensive checklist covering all essential aspects, from legal formalities to financial considerations, to effectively support you in your Croatian real estate acquisition process and maximize your chances of success in this promising market.

Croatian Hotel Market Overview

The current Croatian hotel market situation is characterized by strong growth in tourism demand. In April 2025, the country recorded 1.2 million tourist arrivals and 3.3 million overnight stays in commercial accommodations, representing an increase of 14.8% in arrivals and 18.4% in overnight stays compared to April 2024. Foreign tourists account for nearly 85.5% of overnight stays, confirming the international appeal of the Croatian market.

The hotel supply remains dominated by hotels (45.9% of overnight stays in April), followed by private accommodations and other types of commercial establishments. International chains are strengthening their presence while independent hotels benefit from the growing desire for personalized experiences.

Key trends influencing Croatia’s hotel sector:

• Focus on sustainability and integration of eco-friendly practices.
• Increased digitalization (online bookings, smart management).
• Development of off-season offerings to position Croatia as a year-round destination.
• Growing demand for affordable and segmented accommodations (budget/economy vs. luxury).

The most attractive regions for hotel investment are:

Region	Main Characteristics
Adriatic Coast	High tourist concentration; Dubrovnik & Split leaders
Zagreb	Dynamic urban center with stable growth
Istria & Dalmatia	Popular coastal cities with investors

The Adriatic Coast largely dominates the sector with over 27 million overnight stays in the first half, compared to only about one million in Zagreb or continental areas.

The main market players are:

• Valamar Riviera
• Plava Laguna
• Amadria Park
• Bluesun H&R
• Liburnia Riviera Hoteli

These companies share a large portion of the sector revenue estimated at $15.56 billion in 2024, with projected growth to approximately $19 billion by 2029, representing a compound annual growth rate exceeding 4%.

Recent economic performance:

Specific regulations for the Croatian hotel industry:

• Strict compliance with national environmental standards (green certifications may be required).
• Enhanced legality on private rentals (“private households”) to improve tax transparency.
• Legislative framework favoring foreign investments but requiring compliance with European safety and quality standards.

Future growth forecasts:
The sector is expected to continue its growth thanks to:

• Sustained increase in international tourism.
• Regional diversification outside the summer season.
• Continuous development of modern hotel infrastructure.
  Expected average annual rate: +4.56% between 2025 and 2033.

Summary table

Indicator	Value / Trend
Market size (2024)	$15.56 billion
Market forecast (2029)	$19.45 billion
Main players	Valamar Riviera & Plava Laguna…
Leading area	Adriatic Coast
Foreign share/overnight stays	~85%

Summary list — Key points:

• Demand strongly driven by international clientele
• Segmented supply: chains VS independents/private
• Coastal regions = sector economic hearts
• Strong financial performance since the beginning of the year

Buying a Hotel in Croatia: Key Steps

Croatia attracts with its unique economic and tourism assets: an exceptional Adriatic coastline, over 1,244 islands, rich cultural heritage, and growing appeal for international travelers. The 2025 tourist season promises record attendance, with increasing demand for accommodations, particularly from German, Polish, French, and American visitors. Croatia also benefits from a mild climate conducive to year-round tourism, which encourages hotel investment and extends the tourist season.

Key steps for buying a hotel in Croatia:

1. Search for the ideal location
   • Prioritize tourist areas with high demand (Dubrovnik, Split, Zadar, Dalmatian islands, etc.).
   • Analyze accessibility (proximity to airports, maritime connections, road infrastructure).
   • Assess local competition and positioning of existing establishments.
2. Examination and evaluation of the existing hotel
   • Technical inspection: general building condition, compliance with safety standards, renovation needs.
   • Financial analysis: past performance, occupancy rates, profitability.
   • Verification of online reputation and customer satisfaction.
3. Verification of legal and administrative aspects
   • Check of land registry, property titles, and any debts or disputes.
   • Compliance with local standards (safety, hygiene, accessibility).
   • Obtaining operating licenses and specific authorizations for the hotel sector.
4. Assessment of operational costs
   • Fixed expenses: salaries, social charges, local taxes, energy.
   • Variable expenses: supplies, maintenance, food service, entertainment.
   • Potential renovation or upgrade costs.

Expense category	Estimated range (€/month)
City center housing	1,023
Suburban housing	766
Hotel room (night)	86 – 156
Restaurant meal	10 (per standard meal)
Fuel	1.50 (per liter)

Typical duration of administrative procedures

The entire process (audit, verifications, license acquisition) typically takes 3 to 6 months, depending on the complexity of the case and administrative responsiveness.

Financing advice for the purchase

• Use local or international bank financing: Croatian banks offer real estate loans to foreign investors, often requiring 30 to 40% personal contribution.
• Explore partnerships with hotel groups or institutional investors.
• Prepare a solid business plan to reassure financiers.

Importance of collaborating with local experts

• Real estate agents: to access off-market opportunities and negotiate prices.
• Specialized lawyers: to secure the transaction, verify document compliance, avoid administrative pitfalls.
• Hotel consultants: to assess the establishment’s potential and support repositioning strategy.

Government programs or incentives

Croatia occasionally offers incentives for tourism investments: temporary tax exemptions, renovation subsidies, or VAT reduction on certain works. It’s essential to consult current programs at the time of purchase.

Practical advice for management and development

• Adapt offerings to new expectations (wellness stays, digital nomads, sustainable tourism).
• Invest in staff training and service quality.
• Develop local partnerships (producers, travel agencies, event organizers).
• Implement digital management: online booking, customer review management, operational management tools.

Compliance with local regulations

• Strictly comply with safety, accessibility, and hygiene standards.
• Ensure validity of operating licenses and declarations to tourism authorities.
• Ensure proper income declaration and compliance with local tax obligations.

Recent success examples

The 2025 opening of Hyatt Regency Zadar illustrates the growing interest of major international groups in Croatia. This project, led by Doğuş Group, is part of a dynamic to enhance the luxury hotel offering and demonstrates the profitability of investments on the Adriatic coast.

Establishments such as Sun Gardens Dubrovnik and Hotel Excelsior Dubrovnik also testify to the success of strategies combining renovation, service excellence, and luxury positioning.

Buying a hotel in Croatia represents a solid opportunity, provided you surround yourself with local experts, properly anticipate administrative procedures, and meet the demands of an expanding tourism market.

Due Diligence for Hotel Purchase in Croatia

Crucial due diligence steps for hotel purchase in Croatia:

• Assessment of legal and compliance aspects:
  • Verification that the hotel complies with all local regulations (urban planning, safety, taxation, health standards).
  • Analysis of current operational contracts: franchises, management, suppliers, commercial leases, financial agreements.
  • Identification of clauses potentially affected by the transaction (intuitu personae, ownership changes).
  • Validation of absence of ongoing disputes or litigation risks.
• Verification of property titles:
  • Check of title validity, absence of mortgages or easements.
  • Analysis of ownership chain to detect any defects or irregularities.
  • Verification of registration document compliance and property-related authorizations.
• Analysis of existing contracts:
  • Detailed review of employment contracts, collective agreements, employee rights, potential labor disputes.
  • Review of leases, duration, termination conditions, tenant obligations.
  • Analysis of maintenance, subcontracting, and brand licensing contracts.
• Financial review:
  • Analysis of balance sheets, income statements, audit reports, and tax declarations.
  • Verification of consistency between declared revenues, cash flows, and operational reality.
  • Assessment of operating expenses compared to standard hotel industry ratios.
  • Study of financial projections and identification of investment or cash flow needs.
• Market and tourism potential analysis:
  • Evaluation of hotel location, accessibility, tourist attractiveness of the region.
  • Comparative analysis with competing hotels (occupancy rates, average prices, seasonality).
  • Study of local tourism trends, growth potential, and risks related to economic conditions.
• Inspection of infrastructure and facilities:
  • Technical audit of buildings, equipment, compliance with safety and accessibility standards.
  • Assessment of renovation or standardization needs.
  • Identification of potential structural problems or obsolescence.
• Verification of licenses and permits:
  • Check of validity of all necessary authorizations for hotel operation (operating license, building permit, health authorizations, fire safety).
  • Verification of absence of withdrawal procedures or administrative non-compliance.

Summary table of main due diligence aspects:

Verification area	Main objective	Essential checkpoints
Legal & compliance	Legal security, regulatory compliance	Contracts, disputes, standards compliance
Property	Transaction security	Titles, mortgages, ownership chain
Financial	Viability and profitability	Balance sheets, cash flows, industry ratios
Market	Growth potential	Competitive analysis, regional attractiveness
Infrastructure	Technical risk assessment	Technical audit, equipment condition
Licenses & permits	Legal operation guarantee	Authorization validity

Practical advice:

• Consult local experts (lawyers, notaries, accountants specialized in Croatian law and local taxation) to validate each step.
• Rely on reputable real estate agencies and hotel industry professionals with Croatian market experience.
• Engage independent technical auditors for infrastructure evaluation.

Why these steps are essential:

• They help reduce investment risks by identifying anomalies or non-compliance before the transaction.
• They guarantee the legal security of the acquisition and operational sustainability.
• They provide a clear view of actual profitability and the hotel’s development potential.
• They avoid unexpected costs related to hidden defects or unmet regulatory obligations.
• They facilitate obtaining bank financing, as lending institutions typically require comprehensive due diligence.

A rigorous due diligence process is the guarantee of a successful and sustainable hotel investment in Croatia.

Croatian Tourism Statistics and Trends

Number of visitors and recent trends

• In 2024, Croatia welcomed approximately 21.35 million tourist arrivals and recorded over 108.7 million overnight stays.
• The historical record was reached in December 2023 with nearly 16.85 million monthly arrivals.
• During the first 10 months of 2024, the country counted 17.8 million foreign tourists, an increase of 2.7% compared to the previous year.
• However, in the first quarter of 2025, there was a 16.7% decrease in foreign tourist overnight stays, mainly due to price increases following euro adoption.

Main tourist countries of origin

Rank	Country of origin	Number of arrivals (2024)
1	Germany	Very majority
2	Slovenia	Significant
3	Austria	Significant
4	Italy	Significant
5	Poland	Significant
6	Czech Republic	Significant
7	United Kingdom	Significant
8	Hungary	Significant
9	Slovakia	Significant
10	France	607,227 (+5% vs 2023)

Peak attendance periods

• The tourist peak concentrates during the summer period, from June to September, with notable saturation in July and August.
• Dubrovnik, Cavtat, and Mljet are the most sought-after destinations during summer.
• To limit overtourism, measures encourage off-season tourism.

Tourism impact on local economy

• Tourism generates approximately €15.2 billion in revenue in 2024.
• The sector represents about 20% of annual transactions on the Zagreb Stock Exchange, being the most important sector in number of listed shares and the third in market capitalization.
• Strong tourism demand supports employment and investment, particularly in hospitality and infrastructure.
• Hotel supply and private home rentals remain crucial, even though inflation pushes some tourists to prefer apartments and self-catering over restaurants.

Outlook and forecasts

• Despite recent decline linked to price increases (+30% after euro adoption), Croatia remains a sought-after destination.
• Authorities focus on sustainable tourism development and flow regulation (quotas, increased tourist tax).
• Infrastructure expansion, particularly the highway network, facilitates access to coastal regions and favors arrival of tourists by car or bus (over 80% of visitors).
• New destinations are emerging (for example, Mljet) and diversification of offerings (green tourism, off-season) is encouraged to limit saturation of historical sites.
• Medium-term, the Croatian tourism sector should remain an economic pillar, provided it adapts its model to challenges of overtourism and rising cost of living.

Tourism remains an essential engine of the Croatian economy, but must adapt to new realities: price increases, summer saturation, and necessity for diversification of offerings and reception periods.