The project addresses the problem of urban decay and develops a rational model for a working productive relation between tourists and hosts. It emphasizes the benefits for the hosting city, apart from the hitherto highlighted financial gain, rather the SUSTAINABLE REGENERATION OF URBAN AREAS, SOCIAL INNOVATION AND ECONOMIC DEVELOPMENT to which tourism serves as a trigger. Coastal city of Split (Dalmatia, Croatia) is currently attractive to tourists solely due to traditional life in Mediterranean climate and public spaces, established by previous generations for the purpose of improving the living standard for residents as opposed to tourists. Due to large amounts of seasonal tourists Split has become a dual city where dispersive urbanization is taking place. While on the one hand, tourism is chasing people away from the city, on the other hand, city life is being developed on its outskirts, but mostly without any strategic planning resulting in a chaotic urban structure. The project puts forward a concept of a disperse hotel in a deprived neighborhood of Split. It brings together serviced apartments and a motel, owned by different stakeholders, together in a hospitality cooperative based on the neighborhood and offering a series of adoptable spaces transformable in terms of program which complements the seasonal program for tourists and off-season accommodates the programmatic needs of the neighborhood scattered in a linear park- a link between the coast and neighborhood.