Developing a Best-Practice Model of Circular Economy in the Hotel Industry

The aim of this paper is to develop a best-practice model for circular economy (CE) skills adopted by the hotel sector, using a comparative approach between the status and the future provision. To achieve comprehensive insights, extensive online survey data was meticulously collected from 59 green hotels situated across the vast landscape of Saudi Arabia, yielded 200 complete forms ensuring a robust and diverse sample size. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis, findings revealed that key CE dimensions, such as redesigning, purchasing, production, reusing, consumption and recovering, significantly enhance hotel performance. This research contributes to the existing literature by expanding the application of CE principles from manufacturing sectors to hospitality, demonstrating their adaptability and importance in service industries. The study’s novelty lies in its comprehensive approach to evaluating multiple CE dimensions and their direct impact on hotel performance, offering practical insights for hotel managers aiming to improve sustainability outcomes.