The development of tourism in Neum , Bosnia and Herzegovina’s only coastal town, represents a complex process that began during Yugoslavia’s socialist era, marked by various social, architectural, and ecological challenges. During the 1960’s, alongside accelerated urbanization, transportati on infrastructure, and secondary housing, Neum experienced a transformation from a local community to a remarkable tourist destination. Architecture of that period, marked by modernist principles, was not just functional, but reflected a wide socialist ide ology - promoting collective welfare, harmony with natural surroundings, and inclusivity. However, the expansion of tourism in Neum also brought problems, such as illegal construction, the destruction of landscape, and spatial segregation . The aim of this research is to analyze how the elements of socialist modernist architecture can be used as a base for the further development of hotel complexes in Neum. Modernist architecture from the socialist period provides various important lessons for today’s u rban p lanning. It’s basic principles - simplicity, functionality, and the adaptation to the natural terrain, offer a relevant frame for the contemporary development of tourism. In this context, this research focuses on the integration of those principles into con temporary architecture, with the aim of creating sustainable, functional, and aesthetically pleasing hotels that satisfy the needs of t ourists, while keeping the local identity. With the use of primary and secondary sources, the analysis includes the study of current hotels in Neum, their architectural characteristics, and urban organization. Special attention is paid to challenges, such as unplanned const ruction, degradation of the coast, and the unequal development of different parts of the municipality. Through this analysis, concrete models for the further development of hotels are suggested, which include the incorporation of modernist principles, but with a comb ination of new approaches.