The topic of the final paper is the analysis of the categorization and standardization of hotels in Croatia. The paper presents the beginning of the application of categorization, as well as the hotel categorization procedure applied today in the Republic of Croatia. To achieve the quality of service in hotels, it is very important to apply standards when providing services or selling products. The paper consists of a theoretical and a practical part. In the theoretical part, the legal regulations according to which hotels are categorized as well as the allocation of a special standard are presented. In the practical part of the work, there is a comparison of two hotels, one of which was categorized with four stars and the other with five stars. Both hotels have a special standard for a congress hotel. The survey results obtained on the satisfaction of guests staying in five-star hotels indicate that the category and quality are not uniform. Due to the high competitiveness of the market and the demands of hotel guests, it is necessary to develop and adapt new services that will meet the needs of guests for the price they pay.