Abstract:

Tourism presents a very significant economic activity in countries that have comparative advantages for its development. In Croatia, tourism as a whole and the hotel industry are one of the key areas of economic activity, and tourism activity has a significant portion in gross domestic product in many countries. In order to survive and with the aim of achieving long-term sustainability, hotel companies need to strive to increase their profitability. Profitability of each company is determined by different internal, external and macroeconomic factors. In this paper, it was analyzed the profitability of hotel companies based on their annual financial statements that presents the results of past business decisions of management and business circumstances. Research sample is constituted of 10 largest hotel companies by operating income, and research cover the period from 2016 to 2018. Results showed positive results and trend of increasing the profitability of hotel companies in Croatia in the observed period.