Innovation is critical since it not only raises market attention but also helps in positioning and differentiation (OFallon, amp. Rutherford 2011). Innovation involves a new way of doing things using unique combination of production or delivery factors. Innovation is applicable in different ways like generation of a new product or improving an old product. the hotels can also develop new sales and supply markets or even restructure the whole company.With an aim of insuring sustainable development, the hotel industry is now adopting the new trend of eco-tourism. With years to come, all hotels will have legal obligation to ensure that all their practices aim at environmental conservation (Swami, amp. Sharma 2011). Hotels adopting eco-friendly innovations are beginning to have competitive advantage over other companies that do not protect the environment. Green hotels are growing daily hence becoming the core of the hospitality industry. Customers to this industry are also becoming eco sensitive hence are considering green hotel to meet their accommodation needs. The Eco label is becoming a standard for choice by the tourists and other hotel guests. Eco label hotels add environment friendly technological practices to their good menus besides providing a wide range of resources (Swami, amp. Sharma 2011). In the hotel environment, various activities such as constructions, landscaping, use of water and energy, cooking and disposal of wastes affect the environment if not contained. The size of hotel families in relation to the rate of utilization also influences environmental conditions (Swami, amp. Sharma 2011).There are varieties of forces that are pushing US hotels to be more environmental conscious. Some studies indicate that 90% of the current hotels guest aim at getting accommodations form Eco labelled hotels (Swami, amp. Sharma 2011). This causes pressure on hotels to adopt environment friendly techniques to maintain