Abstract
This study examines the impact of green practices on organisational performance, in Montenegro hotel industry. A mixed-method approach is employed consisting of two phases a questionnaire-based survey administered to those in managerial positions in the hotel, followed by qualitative analysis of interviews conducted with hotel managers. The results indicate significant impact of green practices on hotels’ performance observed through three indicators, namely, quality of service, guest satisfaction and financial performance. Interestingly, investment into green marketing strategies did not have any effect on the relationship between the green practices and performance. Further, interviews identified financial constraints, lack of support from the state and inadequate employee awareness about sustainability as major barriers to implementation of green practices. Guest awareness of sustainability was seen as an important enabler.