Adopting Circular Economy in Hospitality: a Grounded Theory Approach

Abstract The hospitality sector faces increasing pressure to adopt sustainable practices due to its intensive resource consumption. This study explores the integration of Circular Economy (CE) principles within the hotel industry, focusing on furniture management. Using a grounded theory approach, we conducted semi-structured interviews with 25 organizations, including high-end and budget hotels, as well as furniture suppliers. Our findings reveal significant disparities in sustainability practices across hotel categories, with high-end hotels leading in CE adoption through initiatives like furniture leasing, refurbishment, and buyback programs. Conversely, budget hotels face financial and logistical barriers, limiting their engagement with sustainable practices. The study highlights the critical role of government policies, financial incentives, and supplier partnerships in facilitating the transition to CE models. This research contributes to the limited literature on CE in the hotel industry and provides practical insights for stakeholders aiming to implement sustainable furniture management practices.