Croatia’s hotel sector continued to expand in the first half of 2025, supported by rising tourist arrivals and ongoing investment in hospitality infrastructure, according to CBRE’s latest market report.
Hotel market trends will be a key topic at the upcoming Zagreb Property Forum 2025 on 16 September.
Zagreb: modest growth in arrivals, pressure on occupancy
In Zagreb, 610,000 tourist arrivals were recorded in H1 2025, up 2.1% year-on-year, with overnight stays increasing by 1.9% to 1.2 million. Despite this growth, the average daily rate (ADR) fell 6% to €94, while occupancy dropped by four percentage points to 64%.
The capital currently offers 7,500 hotel beds across 59 properties. Four-star hotels dominate supply with 66% of capacity, followed by three-star hotels (25%) and five-star hotels (8%).
Coastal markets: resilience in demand
Croatia’s coastal destinations, particularly along the Adriatic, remain the backbone of the country’s tourism industry. These markets recorded stable demand in H1 2025, supported by strong international inflows. Continued infrastructure investment, including new transport connections and upgraded hotel facilities, has helped maintain competitiveness.
Investment market: ongoing activity
CBRE notes that Croatia remains an attractive destination for investors, with both domestic and international buyers active in the hotel sector. Transactions are being driven by opportunities to reposition older assets, particularly three- and four-star properties, to meet rising demand for higher-quality accommodation.
Outlook
According to CBRE, the market outlook is positive, with stable growth in arrivals expected through the remainder of 2025. However, operators face challenges including rising operational costs and competitive pressure on ADR in certain urban markets. Long-term prospects are supported by Croatia’s sustained popularity as a leisure destination and growing appeal for city tourism.
