When the break up of former Yugoslavia happened, there was the issue of what to do with various businesses. Despite the fact that Penthouse owned this hotel, they probably had to set up a shell company in Croatia in order to buy it. This is still the case today for anyone who is not a Croatian national and wants to own anything from a donkey shack to skyscraper in that you can’t directly own it without Croatian nationality.

Judging by the age of decay, someone along the line in President Tudjman’s rather corrupt regime (they sold off tons of things that were actually property of the Croatian people) this is what happened to this hotel. Its shell company ownership was “revoked”, someone got it, didn’t know how to run a hotel, and then just let it fold in to dust.

Kind of a stupid idea from the get-go as while in a decent spot, there’s no international airport or train nearby, Krk can only be accessed by a single, small bridge, and importing Penthouse Pets to staff it was loony given the fact that my Slavic lady kin are gorgeous.