The Circular Turn in Hospitality: Strategies, Drivers, and Impacts of Circular Practices in the Hotel Industry—A Systematic Review

Abstract

The Circular Economy (CE) offers an alternative to the traditional “take–make–dispose” model and is increasingly important in hospitality due to the sector’s high resource consumption. This systematic review analyzes 159 studies published between 1995 and 2024, sourced from ABI, BSP, and WoS, and consolidates scattered knowledge on CE practices in hotels. It outlines five strategies for transitioning to CE: energy efficiency, renewable energy, water management, waste reduction, and carbon footprint reduction. These are supported by green procurement, local supply chains, eco-certifications, and regenerative branding, all of which help hotels fulfill stakeholder expectations and support local economies. Guest engagement—through nudges, incentives, co-creation, and digital tools for monitoring and feedback—is becoming increasingly important. The review shows that CE adoption is driven by internal factors such as leadership, staff training, culture, and resources, as well as external factors such as regulation, institutional pressure, and consumer demand for authenticity. Effective collaboration among managers, staff, suppliers, policymakers, and certifiers is essential for achieving systemic adoption. CE is moving from operational efficiency to broad innovation benefiting the environment, economy, and society, despite financial, regulatory, and behavioral challenges. Future research should prioritize establishing measurement standards, addressing scalability issues, and evaluating the global effectiveness of implementation.

1. Introduction

The hospitality industry ranks among the most resource-intensive sectors. It faces growing criticism for its environmental impact and its role in global issues such as climate change, resource depletion, and waste. Hotels, specifically, are large consumers of water and energy, produce significant waste, and rely heavily on international supply chains [1]. These issues have increased pressure from governments, consumers, and global organizations to implement sustainable practices and adopt circular economy principles [2,3].

Over the last twenty years, research on hotel sustainability has expanded significantly. Initially, studies focused mainly on environmental management practices such as water conservation [4,5], energy efficiency [6], and waste reduction [7]. More recently, researchers have shifted towards systemic approaches that include Circular Economy (CE) principles [8,9]. This marks a major paradigm shift: instead of isolated initiatives, hotels are now encouraged to reassess their business models to decouple growth from resource use and create regenerative value for stakeholders [10]. This evolution is influenced by regulations, market competition, and changing consumer expectations. Guests are increasingly favoring hotels with reputable eco-certifications [11,12] and reacting negatively to “greenwashing” [13].

As a result, hotels are investing in eco-labels, restructuring supply chains [14,15], adopting green technologies [16,17], and embedding sustainability into their branding to stay competitive [18]. The COVID-19 pandemic heightened the urgency of these measures, exposing the weaknesses of linear, resource-intensive business models. Many hotels adopted recovery approaches that combined sustainability with health and safety objectives [19]. Concurrently, digital innovations such as automation, data analytics, and Industry 4.0 technologies emerged as tools to enhance energy efficiency, track waste, and engage customers in sustainable initiatives [20,21].

Although progress has been made, research on CE in the hotel industry is still fragmented. The wide range of studies makes it difficult to form a clear understanding of circular strategies and their outcomes. Researchers also point out that environmental initiatives alone are not enough. Engaging stakeholders [22], implementing behavioral interventions [23,24], and establishing governance mechanisms [3] are all crucial for promoting systemic sustainability. However, the related literature remains scattered and lacks consistency.

This paper presents a systematic review of 159 studies published between 1995 and 2024, retrieved from the ABI, BSP, and WoS databases. The analysis reveals a clear development: what once was a specialized academic interest in environmental management [4,25] has evolved into a mainstream issue shaped by regulations [11], corporate commitments [22], and rising consumer demand for sustainable tourism [10]. Recent studies emphasize CE as a key factor driving sustainability [2,26], fostering innovation [20], and enhancing resilience [27,28], with the pandemic serving as a major catalyst [29,30].

The review highlights eleven interconnected strategies that support the transition to a circular economy (CE) in hotels and examines their drivers, barriers, and outcomes. It makes three primary contributions. First, it unifies a scattered array of research, providing scholars and practitioners with a clear summary of CE practices. The synthesis illustrates how different strategies work together and reinforce one another, fostering a more integrated approach to sustainability.

Secondly, it introduces a strategic framework that divides CE practices into four categories: operational, managerial, behavioral, and governance. This structure highlights the range of approaches and emphasizes the connections between technological innovation, stakeholder involvement, and institutional support. Third, it explores the factors that either promote or impede CE adoption. Key drivers include eco-certifications [11], leadership commitment [22], and consumer demand [12]. On the other hand, obstacles such as cost pressures, managerial inertia, and limited technical skills often hinder progress [31]. Understanding these factors enables hotel managers to identify effective strategies to overcome barriers and accelerate the shift toward circularity.

The paper concludes by proposing a future research agenda. Promising directions include leveraging digital technologies for real-time resource tracking, creating locally tailored circular supply chains, and using behavioral economics to encourage environmentally friendly behaviors among guests. These approaches can strengthen theory and influence policy and practice. Consequently, the paper links academic insights with practical applications, emphasizing the hospitality sector as a key area for advancing Circular Economy (CE) principles. It demonstrates how integrated strategies can generate environmental, social, and economic gains.

2. Materials and Methods

To achieve this study’s goal of mapping and synthesizing strategies for implementing circular practices in the hotel industry, we conducted a systematic literature review. Staples & Niazi [32] state that this approach enables identification, evaluation, and analysis of primary studies to answer a research question. It transparently reports the study’s identification process, informing readers of article selection [33], and aims to update knowledge and guide future research [34]. Throughout the review, we use these terms consistently: Circular economy (CE) is the overarching economic paradigm based on designing out waste, keeping resources in use, and regenerating natural systems. Circular practices refer to operational, managerial, institutional, and behavioral interventions hotels use to enact these principles. Circular transition describes a system-level, long-term shift in a property, firm, or destination from linear to circular. We apply this scheme uniformly.

2.1. Research Objective and Review Protocol

This paper analyzes circular practices, determinants, and outcomes related to adopting the circular economy in hospitality. It integrates diverse research to enhance understanding of transitions in service industries and provides insights for managers and policymakers to promote circular transformation in hotels.

Following Tranfield et al. [34], our review adhered to a five-step framework for clarity and reliability. First, research objectives were set. Second, inclusion/exclusion criteria standardized article selection. Third, a systematic search identified relevant studies. Fourth, data extraction and coding organized findings. Finally, results were synthesized and analyzed.

2.2. Inclusion and Exclusion Criteria

This systematic literature review focuses on articles exploring the implementation of CE in hotels, specifically examining strategies, actors, enablers, and barriers. Only articles that address CE within the hotel sector were included, along with additional specified inclusion and exclusion criteria.

The review starts in 1995 and extends to 2024. The year 1995 was chosen because it marks the publication of Pearce and Turner’s influential work [23], which established the core principles of environmental economics by highlighting the importance of balancing economic growth with environmental conservation and the preservation of natural capital. Since environmental economics is a fundamental basis for Circular Economy ideas, Pearce and Turner’s concepts have significantly influenced subsequent research on resource efficiency, waste minimization, and sustainable resource use. By the mid-1990s, these ideas gained wider recognition within sustainability and resource management fields, boosted by new environmental regulations, including major legislation in the UK enacted in 1995 to support sustainable practices [35]. Therefore, 1995 is a fitting starting point for tracing the development of the theoretical concepts underpinning Circular Economy research in the hospitality industry.

Second, in line with common practice [36,37] and since this study started in early 2025, the review included only articles published up to 2024. While the original systematic search covered studies published between 1995 and 2024, we also incorporate recently published, highly relevant studies from 2025 and early 2026 that became available during the review process. For quality assurance, only articles from peer-reviewed journals classified in the ABDC ranking were considered. As is typical [38], due to limited time and resources, books, reports, and book chapters were excluded.

2.3. Localization Strategy

The strategy for selecting articles in this study involved two steps. Initially, we conducted thorough electronic searches across three multidisciplinary academic databases—ABI/Inform Global, Business Source Premier, and Web of Science—under the guidance of an expert librarian. The search employed the following keyword string:

(“circula*” OR “share” OR “lease” OR “reuse” OR “repair” OR “refurbish” OR “recycle” OR “waste” OR “prevention” OR “reduction” OR “recovery” OR “disposal”) AND (“hotel” OR “hostel” OR “motel”)

This initial search identified a total of 2265 potentially relevant articles: 458 from ABI/Inform Global, 514 from Business Source Premier, and 1293 from Web of Science. After removing 76 duplicates, 2189 unique articles remained for screening. Following PRISMA guidelines, two researchers independently reviewed titles, abstracts, and full texts of the eligible studies. Disagreements on inclusion or exclusion were discussed until consensus was reached. This approach minimized selection bias and increased review reliability, even without a formal inter-coder reliability statistic. The screening was conducted in two stages.

In the initial stage, titles and abstracts were screened against predefined inclusion criteria, resulting in the exclusion of 1832 articles outside the scope of this review. The remaining 357 articles proceeded to full-text screening in the second stage. After a comprehensive review, 203 articles satisfied all criteria. To ensure quality and academic rigor, a final screening was carried out to include only articles published in ABDC-listed journals. During this step, 44 articles were excluded, leaving 159 articles in the final selection. Figure 1 shows the full screening process across all review stages. These procedures upheld methodological rigor and minimized potential selection bias. Since this review emphasizes thematic synthesis rather than effect-size estimation, a formal risk-of-bias assessment was not performed.

2.4. Data Extraction and Coding

A coding framework was created to gather data for further analysis. In line with best practices from systematic review literature [36,38], the framework was developed inductively [39]. It encompasses categories such as title, authors, journal of publication, strategies for implementing CE in the hotel industry, factors, gaps, future research directions, recommendations, and implications.

Two researchers independently performed an inductive thematic analysis, coding the articles and refining the coding scheme through iterative discussion until they reached consensus on any disagreements. The final themes were developed by combining related codes and validated through repeated comparisons with the original studies. To achieve this, we thoroughly reviewed the 159 selected academic articles, extracting key information and identifying recurring themes related to the framework’s categories.

Identifying recurring terms is a common practice in qualitative research, aligning with Strauss and Corbin’s [40] approach to familiarizing oneself with the data and identifying emerging patterns relevant to the research focus. Instead of using predefined categories, initial codes were extracted directly from the study content. These codes were systematically compared and grouped based on conceptual similarity. Through an iterative process of refinement and ongoing cross-study comparisons, broader categories gradually emerged. These categories were then combined into five higher-level themes: the research trend; the circular initiative; the determinants, stakeholders, and outcomes of CE in hotels; and the interrelationships among these themes within the literature.

To ensure the credibility and consistency of the analysis, the emerging themes were continually cross-checked with the original articles and refined as needed. These themes were then analyzed, with some quantified to highlight emerging trends. In the final stage, all results were interpreted in more depth and illustrated with practical examples from case studies across 159 publications. The final thematic framework served as the foundation for organizing, synthesizing, and interpreting the review’s findings.

Figure 1. PRISMA-based flowchart of systematically selecting relevant studies in the analyzed research area, illustrating the full screening process across all review stages. Source: authors’ own contributions based on [41].

Figure 1. PRISMA-based flowchart of systematically selecting relevant studies in the analyzed research area, illustrating the full screening process across all review stages. Source: authors’ own contributions based on [41].

3. Results

3.1. Research Profile

The evolution of research on CE strategies in the hotel industry, as shown in Figure 2, reveals a growing, accelerating trend over two decades. From 1995–2010, scholarly focus was limited, with sporadic publications on hospitality sustainability. Early research mainly explored environmental practices and initial sustainable operations, as the CE concept was not yet prominent [42].

From 2010 to 2015, the number of studies increased as sustainability discussions grew and awareness of resource depletion rose. Research focused on integrating green practices into hotel operations, emphasizing energy efficiency, waste management, and resource optimization [43,44]. Since 2015, publications have grown due to policy changes, supportive regulations, and increased demand for eco-friendly tourism. Hotels adopted circular strategies such as renewable energy, water recycling, and waste reduction, sparking research into their feasibility and impact [45,46]. After 2020, research output surged, peaking in 2024, amid the COVID-19 pandemic, which revealed vulnerabilities in linear business models and highlighted the importance of circular solutions for hotel resilience [47]. The pandemic also increased collaboration among governments, industry, and academia, broadening research on CE in hospitality [10].

Regarding the geographical distribution of CE research in hospitality shown in Figure 3 below, our analysis reveals clear regional differences. Spain stands out with 16 studies focusing on waste reduction, renewable energy, and resource efficiency, driven by its robust tourism industry and alignment with the EU Circular Economy Action Plan [10]. China, including Taiwan and Hong Kong (11 publications), is a key player in integrating CE principles into tourism strategies, as exemplified by initiatives such as green hotel certification and low-carbon development [48]. Contributions also come from the EU and Ghana, each with 6 studies, mainly addressing policy frameworks and sustainable tourism issues [9,49]. Australia and the UAE are increasingly active, especially in water conservation and sustainable luxury tourism [43,50]. Furthermore, a significant number of cross-national studies (63 publications) examine global CE trends and the economic aspects of circular transitions, demonstrating the worldwide spread of sustainability practices in hospitality [8].

3.2. Thematic Foci

To identify research trends and gaps in CE in the hotel industry, we categorized publications into five themes: (a) niche innovations; (b) internal determinants; (c) external determinants; (d) key stakeholders and their roles; (e) outcomes of initiatives. All themes are discussed below.

3.2.1. Circular Practices in the Hotel Sector

The hospitality industry has been progressively implementing a variety of initiatives aligned with circular economy (CE) principles. These initiatives cover areas such as water, waste, energy, procurement, governance, and branding, as well as behavioral interventions for employees and guests.

Hotels have adopted advanced greywater recycling technologies such as membrane bioreactors (MBRs), reducing freshwater use by up to 35% while offering reasonable payback periods [51]. Additional strategies include inexpensive retrofits such as tap restrictors and dual-flush toilets [5,44], as well as custom reuse plans developed using decision-tree models based on hotel type and seasonality [52]. Industry-wide standards, including a target of ≤140 L/guest per night suggested by Styles et al. [4], establish benchmarks to promote uniformity and comparability among properties.

However, rebound effects and heterogeneity across categories continue to pose challenges [53,54]. The study by Estelrich et al. [55] proposes a decentralized, nature-based solution for treating and reusing hotel graywater (GW) using the Vertical Ecosystem (vertECO) in tourist resorts, achieving a Chemical Oxygen Demand removal efficiency exceeding 84.0%. Other strategies, such as progressively substituting the business-as-usual scenario or adopting a centralized system with a small-scale wastewater management scheme, were also proposed [56].

Waste reduction is another critical area of promoting more sustainable hotel practices [57,58]. Food waste minimization has gained particular focus, with research indicating that behavioral strategies like descriptive norms, reducing plate sizes, and modifying buffet setups can cut waste by 14% to 64% [53]. Conducting staff-led audits and fostering coordination between departments also notably improve waste diversion and recycling results [54]. Broader approaches—such as implementing the 3Rs (reduce, reuse, recycle), composting programs, and tariffs like “pay-as-you-throw”—have shown promise in transforming waste management at both hotel and municipal levels [7,55]. Preventing plate waste is another effective approach for adopting CE practices in hotels [24,59,60,61]. Since all food waste affects the environment [62,63,64], hoteliers should rethink their strategies and encourage employees to implement food waste reduction initiatives effectively [65], incorporating lean principles into hotel food operations [27,66,67]. For example, promoting vegetarian meals [68] and composting food waste [69] can significantly lower hotels’ carbon footprints.

Green procurement and supply chain management have also emerged as critical circular strategies. Hotels now focus on sustainable procurement, using environmental criteria for supplier selection [14], adopting dual-channel supply chains linking hotels, online travel agencies, and consumers [70], and prioritizing local sourcing to boost resilience and regional economic ties [71].

Hotels are exploring regenerative business models that go beyond mitigation to create value, aligning circularity with post-pandemic consumer shifts [8,10,72]. They incorporate eco-labels and environmental certifications into loyalty and branding to signal performance and differentiate in competitive markets [13,47]. Huang et al. [73] propose a benchmarking model for greenhouse gas emissions in luxury hotels, promoting energy-saving strategies such as LED lighting, HVAC, and heat pumps. Other hotels adopted innovative strategies for water and energy use, waste management, and design [74]. Scholars emphasize life cycle assessments (LCAs) to identify hotspot emissions in hotel operations [75]. Tools such as the Circularity Index [76] and lean-green practices [77] provide frameworks for measuring and reducing environmental impacts. Green branding strategies are increasingly embedded in digital marketing, often supported by technological integration under Industry 4.0 [21]. However, concerns over greenwashing suggest that branding must be substantiated by credible operational practices to maintain consumer trust [78].

Behavioral and social interventions complement technical strategies. Guest-focused initiatives such as towel and linen reuse [23], normative appeals [79], environmental messaging [80], and rewards [81] show varying degrees of success. Policy frameworks, staff training, and eco-certifications [11,47] offer structural support.

Energy efficiency and the shift to renewable energy sources are fundamental aspects of circular practices. Hotels need to invest in technologies such as biogas, solar power, and other renewables [82,83,84,85], and support them with optimization algorithms and behavioral strategies to reduce consumption [6,86,87]. Methods such as “pay-as-you-use” energy management [88], boosting stays with low CO₂ emissions, and increasing the number of guests per room [89] improve energy efficiency. Advanced analyses, including exergy evaluation and the use of heat pumps in hotels [90], show potential for significant systemic savings. These initiatives demonstrate the variety of circular practices hotels can adopt, while also emphasizing the challenge of integrating them into comprehensive, system-wide strategies.

Although the studies demonstrate a wide range of circular practices, several issues in the evidence cast doubt on straightforward conclusions about their effectiveness. First, the effect ranges reported are not directly comparable. For example, reductions of up to 35% in freshwater [49], 14–64% in food waste [53], and up to 62% in energy savings [86] come from diverse studies with different baselines, property types, and measurement boundaries, often reporting gross effects without accounting for rebound [51,52]. This means the same efficiency strategy could seem highly effective in one setting, yet marginal in another, and the literature rarely explains why. Second, the evidence is biased toward large, upscale properties capable of adopting capital-intensive technologies, while small, independent hotels—represented mainly in low-cost retrofit studies [42]—have been tested for scalability only to a limited extent. These contradictions highlight key gaps that the proposed research agenda aims to address.

3.2.2. Determinants of CE in the Hotel Sector

Our analysis identifies various internal and external determinants of corporate sustainability strategies and CE implementation in hotels.

• Internal Determinants

The effectiveness of circular practices in hotels depends on internal factors that influence organizational preparedness and the ability to implement them.

Leadership commitment is often seen as the key factor, with strong managerial support acting as both a motivator and enabler for CE adoption [9]. Leaders shape strategic goals, allocate resources, and incorporate sustainability into the organizational culture, often driving long-term change. Hotel managers’ environmental attitudes, such as anti-anthropocentrism, anti-exceptionalism, and concern for the eco-crisis, greatly impact waste management practices [91]. Additionally, leadership affects employees’ voice behavior and knowledge sharing in the hotel industry, thereby enhancing CE practices [92,93]. However, Heenipellage et al. [94] found that senior hotel executives with strong attitudes, a solid educational background, extensive experience, foreign exposure, and early environmental awareness tend to perform better at managing hotel sustainability.

Additionally, Tsai et al. [95] found that female hotel managers and those with less work experience tend to have more positive attitudes toward green hotels. The quality of hotel management also influences CE practices [96,97]. Key managerial roles such as linking pay to environmental performance, conducting environmental accounting, and implementing environmental management systems are crucial factors driving overall environmental innovation activity [98]. Similarly, hotel business models and their managerial nuances can influence how environmental commitment is perceived [99]. Ultimately, clear sustainability communication is key to evaluating environmental performance in the hospitality sector [100,101,102,103,104,105]. By maintaining consistent sustainable messaging, hotel managers can highlight eco-friendly features and initiatives [106].

Employee engagement is another central determinant. Studies demonstrate that staff training, supervision, and interdepartmental collaboration are crucial to successful waste management, water conservation, and energy-efficiency initiatives [54,107]. Employees frequently encounter ethical challenges in balancing waste reduction with guest satisfaction [108], but when empowered, they significantly influence guest experiences and promote circular practices [109]. Furthermore, green knowledge sharing and employee training positively promote environmental citizenship behavior in hotels [110]. Recent research highlights the need to align employees’ motivation with a supportive workplace environment to encourage consistent, sustainable actions in hospitality. This relationship is mediated by coworkers, supervisors, and corporate attitudes, linking green behavioral intentions to actual employee behavior [109,111]. Therefore, managers should start by establishing an eco-friendly workplace and implementing motivational strategies to increase employees’ environmental awareness and sensitivity [112].

Hotel guests’ pro-environmental behavior significantly influences circular practices in hotels. According to Budovska et al. [113], factors such as attitude, subjective norm, and perceived behavioral control increase guests’ intentions to reuse towels. Nonetheless, hedonic motives are a more potent predictor of eco-friendly actions in hotels [114]. Additionally, guest demographics influence CE adoption, with female and younger guests more likely to be environmentally conscious [115].

Hotel features such as size, category, and seasonality affect CE adoption. Larger hotels with greater resources are more likely to invest in advanced technologies [84], whereas smaller hotels tend to opt for simpler, affordable retrofitting solutions [44]. Seasonality affects water reuse strategies [52] and food waste management [54]. Additionally, a hotel’s star rating influences both consumption habits and sustainability initiatives [24,98]. Generally, higher-quality hotels demonstrate better environmental management performance [49,116].

Organizational capacities—including financial resources, technical expertise, and innovation readiness—are crucial for assessing the feasibility of circular strategies. Financial constraints, such as high costs of maintenance, cleaning, staffing, and green technologies, alongside concerns that these expenses may outweigh the benefits, can undermine circular practices in hotels [96,97]. Smaller, independent hotels face greater resource constraints, often lacking the economies of scale that large chains enjoy [84]. Consequently, limited resources are frequently allocated to operational needs rather than environmental initiatives [117]. Conversely, emerging environmental technologies help minimize tourists’ environmental impact [118], with tools like virtual reality [119] supporting responsible tourism. The Internet of Things (IoT) and generative AI also enhance sustainable tourism decision-making [120].

Finally, both employees’ and managers’ behavioral and psychological factors impact CE adoption. Values related to the environment, moral duties, and everyday eco-friendly habits play a crucial role in shaping pro-environmental intentions [121,122]. Nevertheless, the gap between intention and actual behavior remains a persistent challenge, as hedonic motivations and rebound effects often undermine the success of internal sustainability efforts [53].

• External Determinants

Hotels are influenced by external factors that affect their adoption of circular economy (CE) practices. Environmental regulations impact their performance, offering both opportunities and constraints [123]. At the supranational level, the EU’s Circular Economy Package provides broad policy guidance, while local measures like pay-as-you-throw tariffs effectively promote waste reduction [124]. National and municipal policies set compliance requirements; however, weak enforcement in developing regions limits their effectiveness [2,125]. For instance, Egypt’s Law 4/1994 on Environmental Protection positively affects sustainable practices in local hotels [126]. Moreover, eco-certifications and hotel initiatives help shape consumer preferences and motivate hotels to adopt greener activities [127].

Market dynamics, combined with shifting consumer expectations, create additional pressure. Post-COVID trends show a growing desire for eco-friendly accommodation, with sustainability now a key factor in tourists’ choices [10]. Nonetheless, skepticism about greenwashing persists among consumers, posing a significant obstacle and risking brand damage if environmental claims lack credible backing [13,78].

Institutional pressures influence hotel practices through various mechanisms. Eco-certification schemes and benchmarking systems offer normative standards and competitive incentives [11,49]. Additionally, stakeholder pressures from online platforms, corporate partners, and regulators strengthen the push for adoption [31]. Economic and infrastructural factors—such as energy and water costs [44], access to renewable technologies [82], and financial resources [84]—serve as both facilitators and obstacles.

Sociocultural contexts significantly affect consumption and waste behaviors, urging the need for environmental conservation in hotels [23,53]. For example, cultural practices such as buffet dining in Thailand [128] or frugality among Muslim travelers [129] underscore the need to tailor CE strategies to local customs. People who conserve water at home and are environmentally conscious tend to have more positive attitudes, feel a stronger moral duty, and are more committed to water-saving efforts when staying in hotels [130]. Additionally, regional sustainability groups across Europe highlight how cultural and institutional influences create varied avenues for adopting eco-friendly practices [10].

3.2.3. Key Stakeholders and Their Roles in CE Transition in Hotel Sector

Circular transitions within the hospitality sector inherently involve multiple stakeholders.

Hotel management is crucial for guiding strategic decisions and investments, and for shaping organizational culture [31]. Their dedication directly affects resource distribution and the prioritization of circular initiatives. Therefore, staff training in CE practices is essential for implementing policies and fostering effective circular operations [131]. Employees play a crucial role in adopting circular practices. Their daily responsibilities, such as waste sorting and conserving energy, along with advocating sustainability to guests, are key to implementing CE principles [107,132]. Their level of engagement, motivation, moral sense, and green creativity [109].

Guests act as both beneficiaries and co-creators of CE outcomes. Behavioral strategies such as towel reuse appeals [23], green rewards [81], and mindful framing [80] demonstrate that consumer cooperation is crucial. Conversely, coercive methods may reduce satisfaction [133], indicating that voluntary participation is generally more effective. The choices made by hotel guests significantly impact the success of eco-friendly hotels [134].

Suppliers and local producers facilitate circular procurement and supply chain practices. Local sourcing strategies [70] not only help achieve environmental objectives but also provide socioeconomic advantages by integrating hotels into the local economy.

Governments and municipalities shape adoption via regulations, incentives, and infrastructure [124,135]. Certifying organizations and eco-labels serve as standard setters and external validators, indicating environmental performance to consumers [11,49]. Finally, academic researchers and innovators serve as knowledge brokers, creating measurement tools like the Circularity Index [76], exergy analyses [136], and decision-tree methodologies [52], which guide practice and policy decisions.

Collaboration among these stakeholders facilitates the positive relationship between greening efforts and performance in the hospitality sector [137]. Support from partnerships with NGO employees, academic researchers, or certified carbon and energy auditors enhances the CE experience [138]. Additionally, inter-hotel cooperation in environmental management can enable smaller hotels to leverage the knowledge and resources of larger hotels [139].

While literature often portrays stakeholder interactions as collaborative, closer examination reveals that circular practices frequently break down at points of conflicting interests and power imbalances. For instance, research highlights a tension between management’s resource goals and guest autonomy. Although online travel agencies may appear impartial, they influence consumer choices by filtering sustainability options [70], thereby controlling which hotel practices are visible. Certifying bodies act as external validators [11,49], but their authority depends on credibility that is undermined by fragmentation and limited consumer awareness (Section 4.4). The relationship between large chains and SMEs is inherently asymmetrical. Smaller hotels rely on collaborations with other hotels to gain access to internal chain experience and resources [139], and they also depend on partnerships with public agencies, academics, and auditors to build CE capabilities [138]. Examining stakeholders through the lens of these frictions—autonomy, gatekeeping, credibility, and resource imbalance—clarifies why coordinating multiple stakeholders can be challenging and highlights areas where governance should be focused.

3.2.4. CE Initiatives Outcomes in Hotel Sector

Circular practices in the hotel industry yield various outcomes across environmental, economic, social, and strategic dimensions.

Environmental outcomes are the most thoroughly documented. Water reuse systems can reduce consumption by up to 35% [51], and industry standards set a target of ≤140 L/guest per night [4]. Food waste reduction efforts have achieved decreases of 14% to 64%, depending on the method used [107]. Energy-saving measures, such as optimization algorithms and renewable energy integration, have the potential to reduce electricity consumption by up to 62% [86] and lower greenhouse gas (GHG) emissions through combined waste, water, and energy strategies [125]. Therefore, the circular economy (CE) presents significant promise as a comprehensive and educational framework for promoting more sustainable tourism practices [140].

Economic benefits include lower operational costs and enhanced efficiency. Payback periods range from as short as three months for low-cost devices [44] to three years for advanced water systems [51]. Waste auditing and recycling also promote cost savings [107,141]. Additionally, green branding and certification strengthen competitive advantage by meeting market demand [13,49]. Bhochhibhoya et al. [142] found a positive link between environmental impact, economic impact, and energy consumption in household activities. Proactive environmental measures can lead to strong economic performance and a better environmental image [143], boosting reputation and customer value compared to other hotels [144]. Consequently, adopting green strategies significantly affects green hotel revisit intentions [145] and customers’ willingness to stay longer [146], increasing competitiveness [147]. Initiatives such as the Hotel Carbon Management Initiative (HCMI) focus on key performance indicators to achieve cost savings and optimize return on investment [98,132].

Social and behavioral results encompass higher guest satisfaction, loyalty, and positive green word-of-mouth [122]. Nonetheless, mandatory measures—such as enforced towel reuse—may have the opposite effect, lowering satisfaction [133]. Employee morale and engagement tend to rise when circular practices are integrated with meaningful CSR initiatives [22]. Additionally, circular economy (CE) practices can influence green hotel guests’ environmental attitudes [148]. For instance, using flattery as a persuasive tool effectively encourages guests to reuse towels, boosting their willingness to do so during their stay [149].

Strategic and organizational outcomes hold particular importance. CE initiatives can reinforce governance and integrate sustainability into the core identity of organizations [31], while eco-certifications and green branding help differentiate companies in competitive markets [18]. Circular approaches further boost resilience and supply chain agility, which are becoming more critical amid global disruptions [150]. Despite these benefits, challenges persist, including rebound effects [52] and the risk of greenwashing when initiatives lack credibility [78].

Two appraisal issues affect the outcomes presented here. The first is attribution. Headlines claiming up to 62% electricity savings [86] or 35% water reduction [52] are presented as intervention effects, but these figures mainly come from individual case studies with particular baselines, system boundaries, and observation periods that are rarely specified. Therefore, they should not be interpreted as representative sector-wide results. The second notable point is the almost complete absence of null or negative findings. The economic argument is based mainly on positive citations—showing that environmental proactivity leads to strong economic results and improved image [151,152,153,154,155], that green attitudes increase revisit intentions [145], and that willingness to stay longer increases [146]. There is no evidence of failed initiatives or of reduced margins. Given the significant initial costs and uncertain returns [84,96,97], the primarily one-sided economic narrative probably reflects publication and selection biases more than a true consensus. Social outcomes offer a more balanced perspective, acknowledging that mandatory measures can sometimes fail [133]. However, the overall understanding would improve if reported benefits were viewed as dependent on credible, properly executed practices rather than as automatic results. Poor implementation can lead to accusations of greenwashing and diminished satisfaction [78,133].

4. Discussion

4.1. Foundational CE Practices in Hotel Sector

Research on circular economy (CE) practices in the hotel industry has expanded considerably since the early 2000s. This rise highlights growing environmental issues, resource limitations, and a worldwide emphasis on sustainability. Initial research primarily concentrated on resource and waste management, enhancing energy and water efficiency, and minimizing the ecological impact of hotel operations. These areas constitute the core practices of CE in hospitality and serve as starting points for hotels addressing sustainability concerns.

Water management has attracted significant focus, especially through technological approaches aimed at reducing consumption and promoting reuse. Examples include adopting membrane bioreactor (MBR) systems for greywater recycling [51] and upgrading bathrooms with water-saving fixtures [52]. Nonetheless, the effectiveness of these technologies often depends on behavioral actions, such as prompting guests to reuse towels or minimizing unnecessary water use [43,156]. This emphasizes the combined importance of infrastructure and human habits in fostering circular practices.

Food and solid waste management is a core pillar of CE implementation in hotels. Early research highlighted waste audits, composting, inventory optimization, and cross-department coordination to cut waste and enhance resource efficiency [107,157]. More recent studies focus on systematically managing solid waste streams, including reducing packaging, recycling programs, and working with local municipalities or suppliers to create closed-loop systems [108]. By reducing disposal volumes and extending material lifecycles, solid waste management directly advances the CE principles of reuse and resource recirculation.

The carbon footprint and emissions from hotels have become a growing area of research, linking energy use and waste management to broader climate change efforts. Hotels consume significant amounts of energy and produce greenhouse gases through activities such as heating, cooling, lighting, laundry, and food service [158]. Research shows that adopting renewable energy sources [82], using energy optimization methods such as smart thermal load control [86], and applying exergy-based analyses [83] can significantly reduce carbon emissions.

Besides technological solutions, straightforward behavioral interventions—such as encouraging guests to adopt energy-efficient behaviors [6,159]—provide clear evidence of reducing emissions and energy use. Additionally, carbon accounting tools and life-cycle assessments are becoming essential methods for measuring and reporting hotel emissions [125]. These tools serve as foundational data sources for developing reduction strategies and improve transparency and accountability in hotel sustainability reports.

These foundational CE practices—including water, energy, waste, and emissions—illustrate a gradual transition in the hotel industry from standalone efficiency measures to more comprehensive resource management systems. However, experts consistently stress that technical solutions alone are not enough. The involvement of staff and guests is crucial to success, ensuring that infrastructure improvements are complemented by changes in daily routines and consumer behaviors. This blend of technological advancement and behavioral change marks the initial phase of CE adoption in hospitality, setting the stage for more sophisticated and systemic circular strategies.

4.2. Drivers and Barriers of CE Practices in Hotel Sector

Our research highlights that the adoption of CE in hotels is influenced by a combination of drivers and barriers operating at the organizational, consumer, and policy levels.

Internal drivers consist of strong leadership, organizational learning, and employee engagement. Studies show that hotels with proactive leadership and a firm commitment to sustainability are more likely to adopt CE practices throughout their operations [22]. Additionally, organizational learning and innovation enable hotels to overcome initial resistance and implement new environmental strategies [18]. External drivers include regulations, customer preferences, and reputational advantages. Hotels are increasingly motivated to adopt CE practices due to stricter environmental laws, global sustainability standards, and growing customer interest in eco-friendly services [31,75]. Green certifications and sustainability awards also bolster external credibility, providing a competitive advantage in markets that value environmental responsibility.

While waste recycling behavior influences CE practices, it largely depends on factors such as administrative incentives, corporate support, logistics, management incentives, and economic drivers [155]. Financial barriers, particularly high initial costs for renewable energy or water recycling systems and uncertain repayment periods, pose significant challenges, especially for small and medium-sized hotels [83,84]. Additionally, knowledge gaps exist, as hotel operators often lack the technical expertise needed to evaluate or maintain advanced CE systems [17].

Consumer-related barriers still exist. The varied preferences among guests mean some support sustainability efforts, while others oppose eco-friendly practices because they see them as inconvenient or costly [52]. Skepticism about green claims, especially when hotels are accused of greenwashing, can weaken trust essential for effective CE branding [13]. Therefore, the success of CE in hotels largely depends on the context. Factors such as leadership, regulations, and consumer awareness can promote progress, whereas economic, cultural, and operational considerations often determine whether CE initiatives achieve their aims.

The factors outlined below expose two unresolved contradictions in the field with direct practical consequences. The first concerns the main driver of guest behavior. The theory of planned behavior identifies attitude, subjective norm, and perceived behavioral control as key influences on pro-environmental actions like towel reuse [113]. However, other evidence suggests that hedonic motives are stronger predictors [114]. Since most hotel nudging strategies rely on normative appeals, if hedonic reasons are indeed more influential, these interventions may target a weaker lever, potentially explaining the persistent attitude–behavior gap documented in the literature [53,121].

The second contradiction pertains to managerial factors. Heenipellage et al. [94] associate stronger sustainability management with extensive experience and international exposure, whereas Tsai et al. [95] observe that less experienced managers often hold more positive green attitudes. Experience appears to have mixed effects, likely because positive attitudes and implementation skills are distinct concepts that are frequently conflated in the literature. Both debates highlight a structural issue: most evidence is concentrated in larger, higher-category properties [84,116,160], implying that our understanding of determinants largely comes from well-resourced hotels, leaving SMEs—a significant share of the sector—relatively understudied.

4.3. Impacts of CE Practices in the Hotel Sector

The impacts of adopting CE in hotels span environmental, economic, and social aspects.

Environmental impacts are the most immediate and well documented. Studies consistently show reductions in water and energy use, waste production, and carbon emissions when hotels adopt CE strategies [44,71,125,161]. Advanced techniques, such as exergy analysis or smart energy management systems, also reveal previously overlooked inefficiencies, offering new ways to reduce ecological footprints [83].

Economic impacts stem from cost savings, efficiency gains, and increased competitiveness. Technologies that optimize resource use help lower operating costs, and waste-reduction strategies reduce expenses associated with purchasing and disposal. Importantly, CE practices also differentiate hotels in the marketplace. Hotels that openly and authentically share their sustainability initiatives improve their reputation, attract environmentally conscious guests, and command higher prices [18,150].

Social impacts are increasingly important considerations in CE outcomes. CE practices enhance employee pride, guest satisfaction, and loyalty by aligning hotel operations with societal values like sustainability and wellness [19,162]. Post-pandemic, branding hotels as clean and health-focused has become essential, linking CE to public health and resilience. Additionally, CE often encourages community involvement through local sourcing or recycling partnerships, strengthening ties with local economies [71]. Moreover, Anton Schmidt and al. [110] note that responsible consumer behavior can be promoted even in hedonistic, unrestricted contexts if communication tools are used effectively.

4.4. Framework of CE Initiatives in Hotel Sector

Our findings highlight that applying CE principles in the hotel industry necessitates a comprehensive framework that combines operational, managerial, institutional, and behavioral strategies. Each of these interconnected approaches contributes uniquely to facilitating the industry’s shift toward a circular economy.

Operational strategies represent the most tangible aspect of CE implementation in the hotel industry. These include efforts related to water management, waste reduction, lowering the carbon footprint, and green procurement [55,163]. Nonetheless, their success heavily depends on specific contextual factors such as hotel size, guest demographics, and pricing models. Additionally, rebound effects and resistance from behavioral changes can diminish their long-term effectiveness, emphasizing the importance of integrated evaluation methods—like life-cycle analysis [75] and circularity indices [76]—which assess systemic resource flows rather than isolated measures.

Managerial strategies form the core of CE in hospitality. Circular business models (CBMs) and green branding enable hotels to align their value propositions with sustainability goals, boosting competitiveness. CBMs can simultaneously enhance organizational performance, boost customer loyalty, and promote low-carbon innovation [20,150,162]. Likewise, green branding, when rooted in genuine practices and supported by digital innovations, can position hotels as leaders in environmental responsibility [13,18]. However, the risk of greenwashing remains a major concern, especially when marketing claims surpass actual practices. Additionally, innovation efforts are uneven, with large international chains leading the shift, while small and medium-sized hotels often face resource and capability limitations.

Institutional strategies establish the foundation for circularity within the industry. Eco-certifications, governance structures, and energy policies set the structural foundation that enables hotels to incorporate CE principles. Certifications have demonstrated success in signaling sustainability and promoting internal improvements [11,49]; however, their effectiveness is limited by a lack of standardization and limited consumer recognition, which diminish their credibility. Likewise, energy-efficiency initiatives and the adoption of renewable energy depend on strong managerial commitment and supportive governance to address regulatory and financial hurdles. The main issue lies in governance fragmentation: some regions adopt progressive frameworks, while others fall behind, leading to uneven industry-wide implementation.

Finally, behavioral and communicative strategies embody the social and psychological aspects of circularity. Achieving alignment among guests, staff, and management is essential; otherwise, CE efforts may only be superficial. Research highlights the influence of normative appeals [23], emotional motivators [164], and leadership commitment [22] in promoting sustainable behaviors. Still, challenges like the persistent attitude–behavior gap and consumer skepticism about sustainability claims remain. This highlights the need for comprehensive behavioral interventions that combine nudges, segmentation, and genuine communication. Overall, each strategic area—operational, managerial, institutional, and behavioral—plays a role in implementing CE in hotels. Collectively, these domains drive the sector’s transformation toward resource efficiency, innovative management, sound governance, and engaged behaviors.

We incorporate these four strategic areas into the comprehensive framework presented in Figure 4. This structure, grounded in existing literature, consolidates and connects findings that were previously studied separately. It enhances the literature by offering an integrated model to better understand the complexities of implementing the circular economy in tourism and hospitality. While general CE frameworks—such as the ReSOLVE schema and value-retention models—illustrate circular strategies at the macroeconomic level, they provide limited insight into the organizational drivers, stakeholder roles, or service sector outcomes that influence hotel adoption. In contrast, earlier sustainability frameworks in hospitality often focus on just one aspect, like green branding or guest behavior. Our approach uniquely combines drivers, practices, stakeholders, and outcomes into a single, context-specific structure designed for hotels, serving as both a current knowledge map and a foundation for future research propositions.

It outlines a set of directional propositions for a circular transition in the hotel industry, intended for testing and empirical validation. It explains how internal drivers (leadership commitment, employee engagement, and organizational capacity, etc.) and external drivers (regulation, market pressures, institutional influences, and sociocultural context, etc.) shape the implementation of various circular practices across operational, managerial, institutional, and behavioral domains. These practices lead to environmental, economic, social, and strategic outcomes for hotels and their stakeholders. Furthermore, both the adoption process and the resulting environmental performance outcomes (e.g., energy, water, and waste reductions) are influenced by the hotel’s context, including size, category, climate, occupancy, and service mix, as well as the level of multi-stakeholder coordination.

This framework and its component connections are proposed as testable hypotheses, with future refinements likely improving its internal logic. Viewing the operational, managerial, institutional, and behavioral domains as four parallel, additive pillars—each contributing uniquely before enabling transformation—undervalues the importance of their interactions. The real transformative power lies in how these domains interact, not in them standing alone. Eco-certification enhances green branding [11,12], behavioral interventions strengthen operational efforts [23,165], governance frameworks shape procurement, and managerial business model innovation impacts technological investment success. The framework’s cyclical and interactive nature—where context and stakeholder coordination affect the driver–practice–outcome relationships and domain interactions—is crucial for future empirical validation.

5. Research Agenda on CE in Hotel Sector

This systematic review contributes to the literature by synthesizing CE research within the hotel sector across multiple themes. It highlights that although progress has been made in operational areas, the field is shifting toward more integrated and systemic CE practices. Nonetheless, several research gaps remain [166]. Addressing these gaps, the proposed future agenda focuses on advancing CE adoption in hospitality by emphasizing systemic integration, interdisciplinary methods, and practical managerial insights. This agenda considers five key perspectives on CE in the hotel industry: comprehensive evidence mapping and meta-analyses with context labels, application of a standardized CE taxonomy, certification harmonization and credibility, pathways suitable for SMEs, and large-scale building energy management systems. These approaches aim to resolve current tensions within the evidence base.

5.1. Operational Strategies

Although CE practices are increasingly adopted, many initiatives still face difficulties in scaling up and achieving system-wide integration [3]. A key immediate objective is to evaluate how robust and context-dependent the reported effects of circular practices are. Future research should extend beyond simple effect measurement by implementing comprehensive evidence mapping and, when feasible, meta-analyses that include context-specific tags. This involves grouping primary studies based on similar baselines and categorizing effects by factors such as hotel size, type, climate, region, occupancy, seasonality, and study design. Such an approach allows for detailed analysis of overall figures—for example, the 14–64% reduction in food waste—broken down by specific contexts instead of average impacts.

Furthermore, future research should aim to develop comprehensive assessment tools like Life Cycle Assessment and circularity indices to measure impacts beyond just isolated efficiency improvements [76,77]. It is equally crucial to enhance measurement comparability by standardizing CE taxonomy and indicators across different properties and contexts, which will help reduce the current variability that hinders the accumulation of knowledge. Additionally, studies should explore rebound effects, where efficiency measures unintentionally cause outcomes like increased guest water use, negating conservation efforts [45].

A key immediate focus is on large-scale energy systems. Future research should include field studies on multi-property building energy management systems (BEMS) in hotel portfolios, reporting on payback periods, thermal comfort, and indoor air quality (IAQ). This approach ensures energy efficiency is balanced with guest well-being. Additionally, investigators should explore cross-sectoral collaborations that connect hotels with food systems, transportation, and energy networks to create broader circular ecosystems [71]. They should also examine how procurement practices and supply chains can be adapted to support small and medium-sized enterprises (SMEs) and bolster local resilience [14,31].

5.2. Managerial Innovation and Business Models

Business model innovation is essential for incorporating CE principles yet is underrepresented in hospitality research [8]. Future studies should explore how Circular Business Models (CBMs) can be adapted to resource-constrained environments and leverage technological advancements such as IoT, blockchain, and AI to improve transparency, mitigate greenwashing, and expand access to CE practices [20,167]. A primary short-term objective is to make circular practices feasible for SMEs, which dominate the industry. Future research should focus on developing and evaluating SME-specific strategies, including finance models, shared services, and cooperative procurement. These studies should assess their effects on adoption, costs, and resilience to see if practices successful in large, upscale hotels can be adapted for resource-limited operators. Additionally, preserving brand authenticity is essential, as green branding must accurately reflect organizational efforts to address consumer skepticism and avoid accusations of greenwashing [13,18,78]. Finally, research should investigate participatory innovation methods in which guests, staff, and local communities collaboratively develop sustainable value propositions [22,168], leveraging both technological and symbolic innovations that uphold the values of the hospitality industry [169].

5.3. Institutional Frameworks and Policy Alignment

Institutional frameworks and policy tools are vital for implementing the Circular Economy (CE), yet they often operate separately. A short-term goal is to standardize certifications to boost credibility. Future research should focus on developing schemes that unify various eco-labels, incorporate third-party verification, audits, and innovative digital assurance methods such as verifiable data trails. These studies need to evaluate their effects on consumer trust, willingness to pay, and adoption rates, especially when compared to non-harmonized systems. They should also address issues like greenwashing and credibility concerns identified in Section 4.4. Additionally, efforts should be made to harmonize eco-certification schemes to improve their transparency, standardization, and alignment with global frameworks, thereby strengthening credibility and consumer trust [11,53]. It is also important to analyze governance interactions across different levels to enhance coordination among local, national, and international policies [28,135], explore how public–private partnerships can foster industry-wide transitions [109], and assess policy innovations such as green procurement, resource taxes, and regenerative frameworks that enable systemic change [140]. Future research should also consider intersectoral linkages, including energy, transport, and food systems, viewing hotels as part of larger circular ecosystems rather than isolated entities.

5.4. Behavioral and Social Influence

Research emphasizes the importance of behavioral strategies in embedding CE into operations and guest experiences, addressing the persistent attitude–behavior gap [170]. Future work should focus on multilevel interventions involving guests, staff, and managers [22]. Behavioral segmentation can aid in developing tailored approaches for different guest profiles, taking into account cultural and demographic variables [164,171]. Additional research might examine how digital nudging, gamification, and personalized messages promote sustainable behaviors. These studies should also consider the influence of organizational culture, leadership, internal communication, and management commitment on staff motivation and guest engagement. This theme aligns with two previously identified immediate priorities. Since behavioral segmentation relies on standardized measures from Section 5.1 and indoor air quality and comfort outcomes—which impact scaled BEMS integration—data collection should occur concurrently with technical metrics rather than separately.

5.5. Equity and Social Justice in CE Transition in the Hotel Industry

While the social impacts of circular practices are often assessed using metrics such as guest satisfaction and employee morale, broadening the lens to include societal issues raises important questions about equity and social justice that warrant further exploration in existing research.

First, a deeper examination of working conditions in circular and local supply chains is necessary. Changes such as in-house repairs, reuse, and increased waste sorting modify job roles, and their sustainability depends on whether this extra work is fairly compensated and performed safely or simply added to existing tasks. Furthermore, the influence of local sourcing on communities needs careful assessment. Although local procurement can boost regional economies [71], it may also pressure small producers or divert supplies from local consumers, causing distributional effects that vary by context and are not always positive. Digital monitoring also raises privacy and surveillance issues. IoT- and AI-based systems aimed at optimizing resource use collect vast amounts of data on guests and staff, raising concerns about data security and employee monitoring—topics often overlooked despite their significance compared to efficiency gains.

These societal considerations highlight a key distributional issue: whether the costs of adopting circular practices unfairly burden SMEs and lower-income areas while larger chains benefit from improved reputation. This broader perspective extends beyond the certification and assurance aspects discussed in Section 5.3. The trustworthiness of circular claims depends on transparency regarding social and environmental impacts; thus, harmonized schemes and digital assurance tools should also verify labor conditions and community benefits. This approach aims to combat greenwashing [13] and address the fragmentation of certification systems discussed in Section 4.4, ensuring that fairness is prioritized alongside resource efficiency.

5.6. Digital Technologies in CE Transition in the Hotel Sector

Recent studies show that digital technology generally supports circular practices but also highlight areas for future research. For example, evidence indicates that IoT adoption enhances hotels’ environmental, social, and economic performance through data-driven decisions and AI improvements [172]. Future research should examine how sensing, analytics, and automation work together and identify the conditions under which their combined use yields overall circular benefits.

Secondly, managers view “innovation and technology” as vital to CE, associated with cost savings and customer demand [64,173]. However, it remains unclear how these factors differ across hotel sizes, categories, and regions. Future work should investigate how various levels of pressure, commitment, and capability influence hotels’ transition from intention to action, especially for resource-limited SMEs.

Third, it would be helpful to contextualize digital tools in hospitality within the wider circular technology landscape. While large-scale text analysis highlights clusters such as digital, life-cycle assessment, and biomaterials [174], the hospitality literature mainly focuses on digital aspects. Future research should explore whether LCA-based and biomaterial innovations can be applied in hotel settings and assess their impacts.

Finally, the success of these technologies depends on staff and guest engagement. Research should study human and organizational factors that influence effective digital system use, including privacy and surveillance concerns. Data governance frameworks must balance efficiency with protecting guests’ and workers’ rights. Digital technology is also vital for two emerging priorities: providing verifiable data for digital assurance (see Section 5.3) and enabling inclusive, affordable access—critical for SME growth (see Section 5.2). Future research should explore whether digital tools promote equity by reducing the gap between large chains and resource-limited operators.

5.7. Systemic Perspective on CE in Hotel Sector

Our research indicates that studying CE in the hotel industry requires examining how circular strategies interact dynamically, creating synergies that help hotels shift from resource-heavy service providers to active participants in a circular economy. Implementing CE in hospitality is a complex, multi-layered, and interdisciplinary process. While improving operational efficiency and resource management is essential, the real strength of CE lies in connecting strategies across operations, policies, management innovations, and behavioral engagement [2,9]. Future research should explore these connections, such as how eco-certifications enhance green branding [11,12], how behavioral changes boost efficiency [23,165], or how governance influences green procurement [43]. Operational innovations should be viewed within broader governance and behavioral frameworks. Management should integrate branding, digital tools, and innovative business models, and governance should align policies to support this environment. Five interconnected priorities are crucial: evidence (Section 5.1, evidence mapping) relies on standardized measurement (Section 5.1, taxonomy); credible scaling (Section 5.3, certification) and SME-friendly pathways (Section 5.2) determine practice adoption and diffusion; large-scale BEMS integration (Section 5.1) provides performance data to address other priorities. Addressing these issues separately risks fragmentation, but a collective approach enables scholars to strengthen the hospitality sector’s contribution to the global circular economy and provides managers with practical insights for meaningful change.

6. Conclusions and Contributions

Our research shows that adopting CE in the hotel industry involves key initiatives such as water reuse, food waste reduction, energy efficiency, green procurement, eco-labels, guest nudges, and smart technologies [13,51,81,165]. It also highlights that the success of these circular practices depends on internal factors like managerial commitment, staff training, resource availability, and organizational culture [107], as well as external influences such as regulation, certification, consumer expectations, and cultural norms [10,124]. The results emphasize that stakeholder collaboration—among management, staff, guests, suppliers, policymakers, and certifiers—is essential for widespread adoption and legitimacy [31,71]. Furthermore, while CE practices in hotels can lead to environmental benefits, cost savings, increased competitiveness, guest loyalty, and resilience, stakeholders must also manage risks like greenwashing and potential dissatisfaction from poorly executed initiatives [75,78].

Furthermore, this study highlights a shift from isolated operational CE efforts to more comprehensive, integrated strategies encompassing technology use, guest involvement, branding, and supply chain collaboration. This change indicates a broader understanding that single-focus actions are not enough to drive significant change in hospitality [9,49]. For instance, green branding is gaining prominence as a way to stand out in the market, but literature cautions that its success depends on credibility. Studies show that consumers are quite skilled at identifying greenwashing, and perceived insincerity can harm reputations and diminish trust, ultimately harming CE objectives [13,78]. Conversely, when branding efforts are incorporated into organizational policies and backed by genuine environmental actions, they can improve environmental outcomes and offer competitive advantages [18]. Consequently, current research increasingly explores how brand authenticity is developed and maintained, especially in an age of increased consumer scrutiny and transparent information [12].

Digital transformation has become a key driver of CE implementation, helping hotels improve operations and offer personalized, sustainability-focused services. Research shows that big data analytics, online review analysis, and smart technologies enable a better understanding of guest preferences and more efficient use of resources [16]. However, the literature also points out a tension between the potential of technological solutions and the risk of overdependence, as these interventions might overlook behavioral and cultural factors vital for lasting change [167]. Additionally, digital tools serve a dual purpose: they boost organizational resilience—through contactless services and virtual tourism—and reduce resource use during crises [175]. Therefore, comparative studies aim to identify which digital strategies most effectively balance efficiency, guest satisfaction, and environmental impact across various hotel types and markets.

Our research highlights that supply chain integration expands CE principles beyond individual properties, placing hospitality within a larger sustainability network [176]. Key practices like green procurement, working with local suppliers, and implementing closed-loop supply systems are essential for achieving system-wide circularity [14,31,177]. However, most studies tend to focus on large hotel chains, leaving uncertainties about how scalable and practical these methods are for small, independent operators that make up the majority of global markets [70,178]. Furthermore, scholars point out challenges such as cost management, supplier compliance, and the need for governance structures to maintain accountability throughout the entire value chain [71,176].

Our study reveals that CE in hospitality is evolving from a narrow operational focus to a comprehensive, innovation-driven framework that combines circular practices, their key factors, stakeholders, and outcomes. The findings carry important implications for researchers, hotel operators, and policymakers. Besides summarizing current knowledge, this review offers three main contributions. First, it organizes existing research into a clear framework, illustrating how CE strategies relate and offering both scholars and industry professionals a guide to implementing circularity in hotels. Second, it emphasizes the need for multi-faceted approaches, arguing that technological solutions alone are insufficient without managerial innovation, policy backing, and behavioral changes [77,171]. Third, it proposes a research agenda that encourages further exploration of areas like the role of small and medium-sized hotels [49], the use of digital technologies for monitoring and transparency [167], and the development of multi-level governance structures to unify certifications and standards [179,180,181]. Overall, this review lays a groundwork for future research that is systemic, interdisciplinary, and focused on impact.

Practitioners can utilize evidence-based strategies to implement circular economy (CE) principles in ways that enhance resilience, promote innovation, and support long-term sustainability. In this context, CE in hospitality is not just a sustainability requirement but a transformative opportunity to redefine the industry’s role in contributing to global ecological and socioeconomic health. For managers, investing in technological infrastructure such as renewable energy, water recycling, and smart systems is essential. Technologies such as virtual reality [119], smart landmark recognition [182,183], and generative AI combined with IoT [120] are crucial for advancing intelligent tourism and encouraging positive behavioral changes among guests and staff. Without proper engagement and training, these technological investments may fall short. Moreover, managers should ensure their branding accurately reflects their sustainable practices; overstating sustainability efforts can lead to accusations of greenwashing. Genuine integration of CE into service delivery builds trust and fosters customer loyalty [17].

Policymakers must focus on establishing supportive institutional frameworks. This includes financial incentives, subsidies, and regulations to lower the costs associated with CE adoption. Certification programs and benchmarking can steer hotels toward best practices, while more stringent environmental laws can elevate sustainability standards industry-wide [11,124,184]. Policies should also consider resource disparities between large and small hotels, with smaller ones often facing more hurdles in implementing CE. Additionally, fostering collaboration among the hotel industry, government, suppliers, local communities, and regulators can create synergistic ecosystems [185,186], promoting the development of circular hospitality systems.

Despite the systematic and thorough approach taken in this review, several limitations need acknowledgment. First, the review covers articles published from 1995 to 2024. This timeframe was chosen to reflect the development of circular economy ideas in hospitality, but it may omit newer insights published after 2024 that could add value to the findings. Second, the review focuses solely on peer-reviewed journal articles listed in the ABDC ranking. While this ensures academic rigor, it excludes other relevant sources like books, chapters, conference papers, and industry reports, potentially resulting in a limited view of the practical and emerging aspects of circular economy practices in hotels. Third, concentrating solely on the hotel sector with contextual specificity might restrict how broadly the findings can be applied to the entire hospitality and tourism industry. Fourth, as with all systematic literature reviews, there is an inherent risk of selection bias due to the databases, keywords, and inclusion/exclusion criteria used, as well as some subjectivity in coding and thematic interpretation, despite efforts to maintain rigor and consistency.

Future systematic reviews can strengthen their conclusions by using standardized quality assessment tools or risk-of-bias frameworks suited to the included study designs. This will enable a more detailed evaluation of the reliability and validity of the evidence. Additionally, our study does not include a structured evidence map linking circular economy practices to factors such as hotel characteristics or operating conditions. Future research should adopt evidence-mapping methods to better understand these contextual differences and offer more specific guidance for hospitality practitioners and policymakers. Conducting formal meta-analyses and empirically testing the framework proposed in Section 4.4 should be tasks for future primary research, as outlined in the ongoing agenda. Finally, although our search strategy was grounded in widely accepted Circular Economy terminology, it might have missed studies that use related concepts such as *closed-loop systems*, *industrial symbiosis*, or *regenerative tourism*. Future systematic reviews could include these additional terms for a more comprehensive view of Circular Economy research in hotels. However, these limitations do not diminish the study’s relevance, robustness, or scientific quality.