The paper analyzes the department of marketing and sales of hotels on the example of Hotel Palace in Zagreb. Due to the importance of hotel industry in Croatia's tourist offer, marketing and sales are an important part of the overall organizational structure of hotels. The hotel industry is defined as the economic branchs as the specificity of the services in the same. Sixst ages of hotel industry in Croatia are described as well as features of the recent development of Croatian tourism. The organization of the hotel is defined by the conceptual arrangement of the structure of the branch, factors influencing the structure of the organizational structure of the hotel company and the kind of organizational structures applied in the hotel industry. The marketing of the hotel was analyzed, describing the tasks, goals and activities of marketing, the strategic planning of hotel marketing, the hotel marketing plan and the marketing position in the organizational structure of the hotel. It also analyzes hotel sales, which has a crucial and fundamental role in the work of each hotel. The work ends with a review of Hotel Palace's offer in Zagreb as well as the activities and structures of marketing and hotel sales departments with conclusions and recommendations for further improvements.