The present study investigates about the diffusion of sustainability innovation practices in the hotels/resorts of Himachal Pradesh and J&K which are two very crucial states of India, tourists-wise and location-wise. The paper investigates about the percentage of the hotels that have implemented such practices and also the major reasons behind adoption or non-adoption of such practices. To investigate the responses, the research uses Rogers’ theory of diffusion of innovation which hypothesizes that adoption of such practices depends upon characteristics of the innovation and that of the innovator. The study has been conducted in two northern states of India, viz. Himachal Pradesh and J&K, in 120 hotels belonging to different districts of the two states as these two states represent more than 50% of the northern Himalayan region of India. A study also tries to develop a new instrument to measure environmental sustainability innovations measures in Indian context. Relationships have been established with the help of ANOVA, correlations and regression analysis. The results of the investigation have come out with the findings that the high level of environmental opinion leadership of hotels/resorts is the strongest predictor of the adoption of sustainability innovations. The perceived relative advantage and the trialability of the hotels/resorts are only partially correlated. These results can be extremely useful for the government, innovators, change agents, as well as suppliers of the hotel industry of India and can also be a guide on how to further diffuse sustainability. This study provides a valuable contribution to the emerging fields of hotel sustainability and diffusion of sustainability innovations. Adopting the suggested innovative practices can dramatically transform the way in which the hotels/resorts offer their services and products and hence play a leading role in building a progressive society that promotes a lifestyle that is sustainable.