A hotel company is viewed as a legal entity, which performs catering and hotel business on the market, in order to gain profit and realize set goals. The success of an individual hotel company in the Republic of Croatia can be analyzed based on financial reports. However, if one wants to analyze and compare business and financial success of an individual hotel (as a separate business unit), problem arises due to the unavailability of such information, i.e. the legal structure of the entity or uneven reporting of the company (entrepreneur). Comparability of the hotel companies business also introduces certain problems, so the comparison should be carried out by taking into account other criteria. For example, duration of the business cycle (seasonal or year-round), the size (capacity) and the category of the facility, as well as the specialization of the hotel offer can have an impact on the success of financial operations. Despite the diversity of hotel companies within the hotel industry in the Republic of Croatia, and hotels within the hotel offer system, the business performance of these entities can be read from the annual financial statements (balance sheet, profit and loss account, cash flow statement). Annual financial reports are intended for external users so that they can be familiar with the state and performance of the business entity. Based on the data of the state and success of the business, and additionally by financial analysis through indicators, subjectivity in judgment and comparison is eliminated, and it is possible to classify subjects according to predetermined criteria, that is, to gain insight into the state of the industry based on a deliberate or random sample of business subject from the observed branch.