In recent years, environmental sustainability has emerged as a critical strategic priority for the hospitality industry, driven by increasing consumer awareness, regulatory pressure, and global environmental challenges. This study explores the impact of adopting sustainable environmental practices on the competitive performance of hospitality businesses, particularly hotels and resorts. By examining green initiatives such as energy efficiency, waste reduction, eco-friendly infrastructure, and sustainable supply chains, the research evaluates how these practices influence customer satisfaction, brand reputation, cost efficiency, and long-term profitability. A mixed-method approach was used, combining primary data from hospitality managers and consumers with secondary literature and case studies. The findings indicate that environmentally responsible operations not only meet rising consumer expectations but also create a competitive edge in the market. The study highlights that integrating sustainability into core business strategies can lead to operational excellence and increased stakeholder trust. Practical recommendations are offered to support hospitality managers in embedding sustainability for long-term value creation.