In the last years, boutique hotel niche has been further gaining strength. Growth in interest of boutique hotel sector can be explained by changing trends and demands of the customers. Due to there is a lack on research done on boutique hotels in Croatia, this his paper investigates the motivational factors of boutique hotel guests in Croatia for switching from non-boutique hotels, the perceived image of boutique hotel managers in Croatia regarding guests’ motivational factors, and furthermore, do the boutique hotels in Croatia meet the international boutique hotel standards. Paper based questionnaire was delivered in person to the boutique hotel managers and their guests, from the three strongest tourist regions: Dubrovnik, Split and Istria Counties. The questionnaire measured all the key issues with boutique hotels presented in introduction. Results suggested that the main motivational factors of boutique hotel guests are uniqueness, historical significance, private stay and individualized service. Furthermore, the results suggested that boutique hotels in Croatia do not meet all the international standards of boutique hotels.