The role of public relations in the development of brands in the example of small and family hotels is important so the hotel can gain recognition and costumer loyalty, and in that become not only a desirable accommodation but also a place of rest, fun and experience for guests. The unique experience of every guest like family atmosfere, architecture and interior decorating, smells and taste of local cousine has a special influence in new trends in tourism, and contribute in strengthening brands of family and small hotels which then become the perspective. Family and small hotels with their offerings of personalised and flexible services gain in value and become big phenomenon, and the focus is smaller on massive tourism which is still verydominant. Family and small hotels are for the most in individual ownerships and it is getting harder in upkeeping the family traditions from generation to generation. There will be a research and an analysis of fourteen small and family hotels, seven in Austria and seven in Croatia. The exonomy of experience is extremely important in the creating of hotel brands, and in this work it will be researched how much the hotel managers of family and small hotels are really familiar with the economy's concepts and in the growing of family and small hotel brands using the concept of economy of experience. There will also be used a method of „banchmarking“ where the goal is to improve bussines, which includes the procedure of setting goals, defining programs, analysis and development of public relations in small and family hotels.