The hotel industry is the most important activity of the tourism sector on the global level as well as in Croatia. Tourism is crucial to the economy. In fact, tourism is the carrier of the Croatian economy, from point of GDP, income, employment and even advertisement for Croatia. Therefore, hotel companies, which are the foundation of Croatian tourism due to the high proportion of total number of overnights, should be considered with special focus. The hotel industry has a lot of obligors which are compliant with IFRS with respect to the developed activities and other closely related activities. The hotel industry is a capital - intensive activity that requires good knowledge and valuation of assets based on the International Accounting Standards. The most important models in the valuation are the fair value model and cost model. Particularly significant is the fair value model because subsequent valuation of assets can create revaluation reserves in equity. As such, affects the financial indicators, especially those based on data from the balance. The users of financial statements hotel companies must be careful when making business investment decisions, regardless of the motives of management for the choice of using the fair value method. It is therefore interesting to carry out analysis of the impact of the revaluation on financial indicators for listed hotel companies in Croatia. Certain financial indicators are adjusted for the amount of the revaluation reserve and are compared with the classic indicators, and further discusses their relationship with the competition. It is concluded that revaluation reserves have a significant impact on the financial indicators that are primarily manifested in the improvement of safety indicators, and decrease of indicators of profitability or effectiveness.