This paper explores the process of creating a new tourism product, specifically a luxury hotel within the historical building of Foša. The study aims to present all phases of developing a tourism product, from the initial concept to implementation and maintaining market competitiveness. The hotel project emphasizes the synergy between historical and modern elements, creating a unique experience tailored to meet the needs of today's tourists focused on authenticity and personalized service. The paper covers key development aspects, including market research, product concept, business analysis, interior and exterior design, as well as capacity planning. It also analyzes the financial viability of the investment, focusing on optimal occupancy and pricing strategies to ensure project success. Emphasis is placed on sustainability and environmentally responsible business operations, incorporating wellness facilities, the use of local products, and partnerships with international tourism networks. Throughout the product lifecycle phases – from introduction, growth, and maturity to potential decline – the paper outlines key strategies to achieve long-term success. Additionally, it explores potential risks such as seasonality, emerging competition, and high operational costs, providing recommendations for effective risk management.