Profitability Determinants of Hotel Companies – Comparative Analysis of Primorsko-Goranska County and the Republic of Croatia

In recent years, investments into hotel industry have increased, as well as revenues generated by the hotel companies. However, the issue of the success of their business requires insights from different perspectives. The present trends of globalization and concentration with consolidation of hotel companies supported by standardization of internal reporting, establish the need for continuous monitoring and evaluation of performance determinants. In this paper, the focus is on profitability, and in the wider sense, on the performance of hotel companies in the context of general determinants of hotel business and related industry operations. The results of the regression model on the selected sample have shown some discrepancies in profitability determinants compared to other recent research results, as well as discrepancies at observed levels - Croatia and Primorsko-goranska County (PGŽ). This is a useful indication in the light of the unfavorable trend in profitability of PGŽ hotel companies in relation to the national level.