The service sector has seen exceptional growth in recent decades, especially in the second half of the 20th century. The major turbulence caused by the COVID-19 pandemic had a strong, negative impact on the hotel industry and, therefore, on the tourism sector in Serbia. Due to the cancellation of tourist visits by foreign and domestic tourists during the pandemic, the hotel industry is one of the most severely affected service industries in Serbia. Small commercial hoteliers are in danger of losing their assets precisely because of the ongoing recession and the rising costs of travel companies. The aim of this paper is to point out the importance of promoting the hotel industry, which is one of the key factors for the development of the tourism sector in the Republic of Serbia. In addition to the introduction, this paper is divided into four parts. The first part of the paper indicates the importance of the organizational structure in the hotel industry, while the second part follows the development and evolution of this part of the economic sector. The third part deals with the current structure of hotel facilities in the Republic of Serbia, while the fourth part of the paper indicates the importance of hotel promotion. Finally, concluding remarks are given.