The topic of this final paper is based on the analysis of the luxury hotel market in Croatia, exploring its history, key milestones and innovations that have shaped its evolution. Special attention is given to technological advances and sustainability, and how these elements have become an integral part of modern luxury hotels. Luxury category hotels represent the pinnacle of hospitality offerings and provide an unparalleled experience to guests. They stand out with a high level of personalized service, top-notch amenities, carefully designed details, and exclusivity. In six chapters, the paper explores key concepts in the hotel industry, the history of the hotel industry, and focuses on luxury hotels in Croatia. Additionally, through a survey method conducted on a random sample of respondents, the research provides an insight into the preferences of the citizens of the Republic of Croatia towards luxury hotels and their perception of them. Through this research, the paper offers a more detailed insight into the demands of modern travelers and how luxury hotels can further tailor their offerings to attract a larger number of guests from the target group. This paper, along with the conceptual framework of analyzing the luxury hotel category, attempts to provide an answer to the issue of further development of the mentioned category of tourism, with a special focus on the Republic of Croatia.