Purpose – The purpose of the paper is to comprehensively explore and understand the nuances of luxury hospitality and tourism in Croatia. It examines the characteristics and expectations associated with luxury hospitality and luxury tourism, identifies growth opportunities, and discusses challenges facing the development of luxury tourism in the country. Methodology – Thematic analysis was employed to analyze responses from interviews with stakeholders in the Croatian hospitality industry. These interviews focused on defining luxury hotel tourism products/experiences and luxury tourism in Croatia, as well as identifying key themes and challenges in luxury tourism development. Findings – The findings shed light on what constitutes a Croatian luxury hotel product and Croatia as a luxury tourism destination. Key characteristics include exceptional service, personalized experiences, integration with natural surroundings, architectural sophistication, and gastronomic excellence. Despite challenges like limited global luxury brands and infrastructure, Croatia’s diverse culinary tradition, exclusive accommodations, and picturesque locations contribute to its allure as a luxury destination. Originality of the research – The findings offer insights for tourism providers to tailor their offerings towards more meaningful and memorable experiences, emphasizing exceptional service, personalization, natural surroundings integration, architectural sophistication, gastronomic excellence, and exclusivity. Addressing challenges such as infrastructure limitations and overcrowding, along with strategic investments in upscale amenities and services, can elevate Croatia’s competitiveness in the luxury tourism market. This paper marks the initial effort in addressing the research gap in luxury tourism, signaling the need for further exploration of luxury tourism in Croatia.