The issue of hostels in Croatia has been addressed in the final paper and hostel accommodation supply and demand in Croatia have been analysed. The research on both the offer and the satisfaction of the guests of the Chameleon hostel was conducted. The research findings point out tourist satisfaction with the hostel programmes and with the accompanying facilities. The objective was to emphasise the motives of tourist arrivals to the hostel and what they require in order to meet their needs during their stay at the hostel. The purpose of the final paper was to gain insight into hostels, the differences between hostels and hotels, as well as into hostel user profiles. Moreover, another objective was to gain insight into the specific features of hostels, due to the increasing demand. The number of hostels has been growing significantly, yet in Croatia the resources are currently still insufficient. Their utilisation would increase hostel demand. A conclusion can be reached that investment into hostels could contribute to the overall tourism development.