This study investigates the financial and strategic implications of ESG implementation in the hotel sector, focusing on cost structures, stakeholder engagement, and risk-related outcomes. Empirical evidence remains limited in tourism-intensive economies, particularly regarding operational practices. Using a mixed-methods approach, we combine survey data from hotel managers in Crete, Greece, with a case study of a leading hotel enterprise. The findings reveal that environmental initiatives require substantial investment but can lead to operational efficiencies and regulatory alignment. Social and governance practices, while less capital intensive, play a key role in internal stakeholder trust. The study concludes that the integration of ESG into measurable key performance indicators, when strategically aligned with corporate objectives, contributes to long-term financial viability. These insights reinforce ESG’s growing role in enhancing resilience and governance effectiveness within the hospitality sector.
Garefalakis et al. (Tue,) studied this question.