Buying a Hotel in Croatia

The Croatian hospitality market has emerged as one of the most dynamic and tourism-intensive in Europe. In 2024, Croatia recorded approximately 21 million international arrivals and more than 93 million overnight stays, representing year-on-year growth of around 1.4%. Tourism remains a cornerstone of the national economy, contributing close to 20% of GDP, one of the highest ratios in the EU. These figures highlight Croatia’s strong global visibility and its increasingly diversified appeal beyond traditional summer leisure travel, extending into cultural, wellness, and rural tourism segments.

‍

Market Trends and Locations

Croatia’s hotel and property markets are characterized by a rising emphasis on quality and a gradual repositioning from private accommodation toward higher-category hotels. The country’s main destinations — Dubrovnik, Split, Zadar, the Istrian Peninsula, and the Kvarner region — continue to anchor demand. In 2024, Istria alone hosted nearly 28 million overnight stays, followed by Split-Dalmatia with about 18 million, confirming their status as the tourism engine of the Adriatic coast. At the same time, smaller inland and island destinations are drawing investor interest for boutique and wellness-oriented developments that help diversify seasonal demand.

‍

Occupancy and Hotel Supply

Hotels and similar accommodation in Croatia achieved an average room occupancy rate of 59% in 2024 according to the Croatian Bureau of Statistics. The formal hotel sector remains under-represented in the national accommodation structure, comprising roughly 172,000 bed-places, or about 15% of total capacity. By contrast, private apartments, villas, and short-term rentals dominate the market. Indeed, Croatia records the lowest share of nights spent in hotels in the EU (27%), compared to the European average of 63%, reflecting the prevalence of alternative accommodation options. This imbalance presents clear potential for the expansion and modernization of small and mid-sized hotels, particularly those able to operate year-round.

‍

Transactions and Investments

While detailed public data on small-hotel transactions remain limited, the overall hospitality sector value was estimated at USD 5.73 billion in 2025, projected to reach nearly USD 7.9 billion by 2030 (CAGR 6.6%). Croatia’s adoption of the euro and entry into the Schengen Area in 2023 have strengthened cross-border investment flows by eliminating currency and border friction. Institutional and private investors are increasingly targeting the upscale and luxury segments, focusing on coastal redevelopment and adaptive-reuse projects. Local authorities have also emphasized the need to rebalance the accommodation mix by incentivizing higher-category hotel investments to improve yield per visitor.

‍

Tourism and Visitor Statistics

Croatia now records the highest tourism intensity in the European Union, with around 24 overnight stays per capita—a measure of how central tourism is to the national economy. International travel is dominated by European visitors, particularly from Germany, Slovenia, Austria, and Italy, accounting for over half of arrivals. Despite its small population of ~4 million, Croatia consistently ranks among the top Mediterranean destinations for inbound travel, combining natural appeal with increasing accessibility.

‍

In Summary

Croatia stands out as a compelling destination for small-hotel investors. The country combines sustained visitor growth, high tourism intensity, and a structural undersupply of hotel beds relative to demand. Investors benefit from euro-zone stability and a transparent property regime, though seasonality and regulatory complexity require careful planning and local expertise. For operators and buyers focused on boutique, lifestyle, or wellness properties, Croatia’s mix of proven demand, underdeveloped hotel stock, and government focus on quality upgrades makes it an attractive environment for targeted acquisitions and repositioning opportunities.