This thesis examines the growth potential of the family-run hotel Mirjana & Rastoke within the context of the Lika destination, known for its protected natural beauty and commitment to sustainable tourism. The main objectives of the study include exploring ways for the hotel to improve its operations, stand out among competitors, and attract more guests through innovations and expanded offerings. The paper analyzes current trends in environmental sustainability in Croatian tourism and highlights the unique aspects of the Lika region, which boasts rich natural and cultural resources, from the Plitvice Lakes National Park to authentic gastronomic offerings. The empirical research is based on interviews with key hotel personnel and surveys with guests, providing insights into visitor needs and expectations as well as opportunities for developing additional services. Findings indicate the importance of preserving the environment and authenticity, alongside the need for investments in new services that cater to the demands of modern tourists. It is concluded that, with an adequate strategy and innovation, the Mirjana & Rastoke hotel can achieve a competitive advantage and contribute to the sustainable development of tourism in Lika.