The paper analyses the new management practice in the hotel industry. Over recent years, the environment for hotel management in Croatia has changed radically. Difficult business conditions require the transformation of management in the hotel industry. From the old-style business model, in which hotel managers were focused inwards on the hotel and its operation, a new paradigm encompassing a more externally oriented focus is now required. The current transformation of socially-owned hotels into capital-based and market-oriented business enterprises will accelerate the general process of privatisation and promote incentive management strategies. The article gives the research results of the new management practice in the case of the hotel "Excelsior" in Dubrovnik. It is one of the most successful hotels on the Croatian coast, which practises modern management. The research referred to management level, sex, age and educational structure of managers, their continuing education, knowledge, skills and characteristics of management, main functions of management, delegation of authorities and responsibilities, management system, decision-making, styles of leading and governing of managers by their time. The received results have been compared with the earlier management approach of the above-mentioned hotel. The objective of the paper is to point out the importance of the new management practice and its contribution to the successful hotel business
