The hotel industry in the Republic of Croatia has gone through a turbulent historical period, and the first forms of hotel business date back to the time of ancient Rome. Significant development of the hotel industry occurred at the end of the 19th century when railway and maritime transport was put into operation, which ultimately significantly influenced the construction of catering facilities. The first significant investments in the hotel industry of the Istrian County were recorded in the 1950s, when hotel companies were opened in the area of Umag, Poreč and Rovinj, hotels were built and tourist agencies were opened. By the end of the 19th century, the County of Istria recorded an increasing increase in arrivals and overnight stays of domestic and foreign tourists and accounted for over 22% of the total tourist traffic in Croatia. Today, the hotel industry in the Republic of Croatia is regulated by a number of laws and bylaws, and they prescribe the legal requirements that must be met by every hotel facility. The hotel industry in the County of Istria has its own specifics due to its favorable geographical position, rich cultural heritage and natural resources, so even today it participates with more than 30% in the realization of the total tourist traffic in the Republic of Croatia. Considering that hotel accommodation in this area is put in the background in relation to private accommodation (apartments and holiday houses), a comparative financial analysis of the performance of selected hotel companies (Valamar Riviera dd and Plava Laguna dd) for the period from 2017 to 2019. This analysis was conducted with the aim of evaluating the performance of hotel companies in the County of Istria. Based on the collected annual financial reports of selected hotel companies, the horizontal analysis seeks to identify and compare the trends and dynamics of operations of selected hotel companies, while the vertical financial analysis draws conclusions about the structure in the financial statements.