The topic of this thesis explores the competitiveness of heritage hotel development. Heritage hotels form a specific segment of the Croatian tourism industry, and, judging by global trends, they have strong potential for future development and for enriching the country's tourism offerings. These hotels provide guests with the opportunity to experience the cultural environment they are visiting, including its architecture and gastronomy. They represent a segment of the tourism market through which it is possible to diversify and enhance the existing hotel offerings. This, in turn, leads to attracting new consumer segments, extending the business season, and consequently having a positive impact on the economy. It is also important to note that this type of hotel contributes to the preservation of cultural and historical heritage through the renovation and maintenance of historic buildings. The goal is to extend the tourist season, increase the competitiveness of small and medium-sized enterprises in tourism, and promote the development of tourist destinations by improving the quality and expanding the offerings of hotels.