This masters's thesis is based on the theoretical study of strategic management in the hotel industry and the analysis of the same in hotels of the city of Dubrovnik. At a time of global competition and increasingly demanding tourists who are very familiar with the entire range of high-class hotels in the area and beyond, strategic management has proved to be the only, long-term sustainable response that ensures business success to hotels. Quality strategic management implies the creation of an appropriate organizational structure that adequately accompanies the the market situation and create conditions for growth as a result of the development strategy, structure and systems necessary to achieve this renewal and growth and creating effective management to ensure the definition of the strategy and its implementation. Dubrovnik is regarded as one of the most if not the most prominent destination on the Adriatic and thus high category hotels in the city, as the best representatives of their business, should be at the same level; modern hotels that in the best possible way correspond to the demands of this dynamic market due to implementation of new business strategies and trends. However, it seems that these hotels are still "stuck" in the transition from mass tourism based on the number of guests arriving and location as the main advantage to the modern and "elite" tourism which successfully met the needs of guests and employees are a priority and the way to achieve strategic objectives.