The paper investigates the modern concept of hotel development with an orientation to specialized hotels in culture and tourist destinations. The aim of the research is to determine the specialization of the hotel offer with regard to cultural and historical characteristics and the ways in which the hotel industry includes cultural and historical heritage in the overall product of tourist destinations. The paper examines hotel development initiatives with special emphasis on the need for diversification and change driven by trends as well as the importance of specialization as a hotel development trend. The paper investigates aspects of specialized hotels in culture and tourist destinations, tries to define the innovation of the hotel offer, the development of tourist products in the field of creative activities and economy and the hotel industry of cultural tourism with reference to hotels inspired by culture. Using scientific quantitative and qualitative methods, the paper investigates aspects that affect the positioning of hotels as tourist attractions and tries to process case studies as good practices of modern hotels. The empirical part of the paper deals with Art hotels that are equipped with works of art, and which are promoted as museum hotels, both world and Croatian. A desktop survey related to hotel promotional activities was conducted.