The paper presents a quantitative approach to measure environmental orientation in hotels. It proposes a composite indicator, which consists of five individual indicators, namely environmental records, environment policy, environment management systems, involvement in relevant projects/programmes and receipt of environmental awards and certifications. The paper also attempts to empirically assess factors affecting environmental orientation of hotels using primary data collected through a survey of hotels. The paper finds that hotel characteristics play an important role in hotel’s environmental orientation. Customer characteristics and manager characteristics do not show a statistically significant relationship to environmental orientation in hotels.