Croatia ramps up luxury hotel offering as demand soars

(Photo: Hotel Preko Ugljan, Curio Collection by Hilton)

Hilton, Novotel, and a wave of five-star openings reshaping Croatian tourism landscape

Croatia’s luxury tourism sector is experiencing a significant upswing, with a growing number of high-end hotels opening across the country.

In response to increasing demand for premium accommodation, renowned global hotel chains such as Hyatt, Marriott, Accor, and Hilton are expanding their presence along the Adriatic coast and beyond, HRT reports.

Tomorrow marks a milestone with the opening of the first Hilton island hotel, located in Preko on the island of Ugljan.

This addition reflects a broader trend: over the next two years, thousands of new beds in top-tier hotels are expected to become available, with many of them operating year-round.

Pula’s First Five-Star Hotel and Marina Opens

The Istrian city of Pula has welcomed its first five-star hotel alongside a marina rated with five anchors. This €37 million investment, led by prominent entrepreneur Danko Končar, is set to elevate Pula’s appeal as a luxury Mediterranean destination.

“Our goal is luxury, and that comes at a price. We’re not interested in mass tourism but rather in offering quality,” Tomislav Korošec, Director of Heritage&Resort Hotel Monumenti, tells HRT. “As we’ve just opened, we are offering special prices — up to 20% lower — to establish our position in the market.”

(Photo: Press/Heritage & Resort Hotel Monumenti)

Major Sustainable Development on Rab

The island of Rab has also seen a major upgrade in its tourist offering. A strategic partnership between Valamar and the AZ pension fund has resulted in the development of a new sustainable resort worth €82 million.

The investment marks the latest and largest phase of their long-term commitment to Rab.

“In nine years, we’ve invested €271 million. This project is our most significant investment in Imperial on Rab, and I believe it will greatly contribute to Croatian tourism,” said Željko Kukurin, CEO of Valamar Riviera.

Hotel Marriot’s The Isolano on Cres (Photo: Press)

The new resort is tailored for family holidays and showcases the island’s food, customs, and traditions. The local community also stands to benefit, with close to €1 million expected to be added to the municipal budget annually.

More Hotels Needed to Compete

Despite recent progress, hotels still account for only 9.5% of Croatia’s overall accommodation offering. Competing Mediterranean countries typically range between 40% and 60%.

“Hotels are the type of accommodation that bring the highest added value. We urgently need more hotel capacity,” stressed Veljko Ostojić, Director of the Croatian Tourism Association.

Zagreb Strengthens Year-Round Appeal

Croatia’s capital continues to expand its hotel portfolio, catering to the growing city break market. The first Novotel in Croatia is currently under construction, while the newly refurbished Stellar Hotel has already opened its doors in central Zagreb.

Novotel Zagreb (Photo: Accor)

“Zagreb remains the leader in arrivals and overnight stays, thanks to its status as a year-round city break destination. Our top visitors this year once again come from the USA, followed by guests from Germany, Italy, and Bosnia and Herzegovina,” said Martina Bienenfeld, Director of the Zagreb Tourist Board.

Encouraging Signs After Slow Start

Following a sluggish start to the year, June has brought renewed optimism. Tourist traffic is on the rise, especially in hotels, which continue to perform strongly despite broader industry challenges. The only drawback? Croatia still lacks a sufficient number of quality hotel beds to meet demand.