During the 1960s, a number of tourist facilities were built in the village of Plat, located just six kilometers from Dubrovnik Airport, which had just opened in 1962. Spread out over three sandy beaches and surrounded by pine and cyprus trees, the facilities were part of a state-owned company and resort called Hoteli Plat. Besides the hotels, the property had two outdoor swimming pools, two tennis courts, and two pavilions.

Hotel Plat opened in 1968 immediately became a magnet for tourists. So the decision was made to build a larger Hotel Plat in 1972. It was referred to as Hotel Plat II until its name was changed to Hotel Ambasador a decade later. The new hotel had nine floors with 302 rooms, each with its own view of the Adriatic. Guests remember that it was extremely popular during the 1980s, when it always seemed to be fully booked through the summer.

Shortly after Croatia declared independence from Yugoslavia in 1991, the two pavilions, swimming pools, tennis courts, and Hotel Ambasador were all badly damaged in an offensive by the Yugoslav People's Army (JNA). They've sat empty ever since.