The hotel was built in 1971. The founder of Penthouse magazine, invested million US dollars in the project and officially opened the Penthouse Adriatic Club casino located in the hotel in 1972. However, the casino went bankrupt the following year and was closed.
Due to constraints on foreign investment in communist Yugoslavia, the hotel was owned by the Rijeka-based Brodokomerc ‘company’. During the Yugoslav Wars the hotel became a shelter for refugees. In 1995, the hotel was privatized and went through a number of owners. It hosted its last guests in 2001.
The hotel resort is abandoned, the buildings remain intact. Signs in the local area still reflected directions to the hotel complex.