Tourism is one of the key economic activities in the Republic of Croatia. At the same time, tourist activity is mostly concentrated in the coastal part of the country. With the exception of the global pandemic COVID-19, the number of tourist arrivals and overnight stays in Croatia had been growing constantly. On the supply side, one of the key parameters of the success and profitability of the tourist activity is the accommodation structure of the tourist sector. Although private accommodation is mostly represented in Croatia, the hotel industry still provides accommodation for about 30% of tourists. The importance of the hotel industry is manifested through its impact on the number, quality and diversity of the tourist services. On the other hand, no less important, the development of the hotel industry prolongs the tourist season, generates higher revenues, compared to alternative forms of accommodation, and ensures higher employment in tourism. The aim of this paper is to analyse the hotel industry in the coastal part of Croatia by observing the share of independent hotels and hotels within domestic and foreign hotel groups/chains. For this purpose, based on the available number of beds in 2019, the basic concentration indicators, concentration ratio and Herfindahl-Hirschman index were calculated. At the same time, the area of coastal Croatia is divided into three separate geographical areas: the northern, central and southern Adriatic region. The results suggest a moderate market concentration more pronounced in the central and northern part of the Adriatic. In the entire area of coastal Croatia, hotel groups are in the lead with a significant market share in the hotel industry.