Hotel ESG performance: A new competitive arena

Purpose – The paper aims to highlight the increasing importance of hotel environmental, social, and governance (ESG) performance as a factor of sustainable competitiveness, and to assess convergence, divergence, and trends at the industry level. Methodology – A qualitative content analysis was conducted of the most recent ESG, sustainability, or responsible business reports published by eight major global hotel groups. The sample includes both integrated and franchise-heavy business models, allowing an assessment of the influence of ownership structures on ESG implementation. Findings – The results indicate that there is a profound change in the global hotel industry, where ESG performance is no longer just a side issue, but a key dimension of competitiveness. All examined hotel companies show strong commitment to ESG practices; however, different approaches are noticeable as well as the impact of ownership structure on the ESG performance. Implications – The present work complements the existing and still vague literature on hotel ESG performance by identifying emerging trends in the industry and practices adopted by the global hotel companies. It also reveals possible alternatives to other hotel companies, especially by demonstrating the relation between ownership structure and ESG practices.