In Republic of Croatia tourism is marked as main strategic activity, significant driver of investments and active generator of national economic development. Tourism in Croatia is main reason for nine percent (9%) of total worlds GDP, for six percent (6%) of total worldwide exports and for every eleventh employed person worldwide. Hospitality, as a main touristic costumer service, cause of its enormous business scope and great impact on certain country economic-growths, is most commonly called hospitality industry. The main representative of hospitality industry in catering offer is hotel, therefore catering facility in which are offered accommodation and other services on specific, hospitality manner. Hotel is an environment, with meaning to provide its guests useful and efficient services and a pleasant stay. Hotel guests expect hospitality and various benefits that hotels management must provide for their welfare, but also for the profitability of the hotel. Hotels are usually classified according to various criteria, and one of them is the size of accommodations capacity, which has an impact on the internal organization of the hotel. Regarding the most dominant offer in hotel, in the modern hotel industry appears some typical hotel types. The main purpose and aim of this thesis is to analyze the hotel industry in Croatia and its competitiveness, as well to compare it with other European Union countries, especially to analyze the part that is related to hotel chains.