Tourism is one of the most massive, dynamic, ind. complex socio-economic phenomena of recent times and it affects almost all aspects of the world economy. Today, tourism is a basic part of life and is becoming an inevitable activity of almost every individual. It is active, constantly experiences dynamic growth and it is oriented towards new adventures and the acquisition of new experiences. As the way of life changes, so do guests' preferences and needs which become more and more demanding and challenging from year to year, for this reason, tourism, and especially the hotel industry, requires a completely new concept of hotel business. To satisfy the demand, it is necessary to constantly invest in the development of tourism and innovative products but considering that the phenomenon of tourism is very complex, several elements are needed that can contribute to its development. Today many experts warn of the danger of mass tourism which has multiple negative effects on the entire environment and there is a significant tendency in the world to reduce it. An increasing number of tourists are looking for personalized forms of travel and unique tourist products and services that will highlight their individuality. To avoid a decrease in the number of tourists interested in conventional tourist products, it is necessary to reconstruct the offer and adapt it to the demands of tourists. In the global tourism market, where the demands of tourists dominate and the competition among hotel companies is getting stronger, it is necessary to create a hotel company strategy based on the concept of brand building. Branding is a process by which hotels differentiate their offer and gain additional value. The aim of this thesis is to determine the importance of specialization in the hotel industry, how differentiation can enhance a business, and how the well-known Dubrovnik hotel under the Marriott International brand, the Sheraton Dubrovnik Riviera Hotel, manages it.