This study combined three different data sources, the Global Entrepreneurship Monitor (GEM), Index of Economic Freedom (IEF) and World Development Indicator (WDI) to examine the relationships between three dimensions of the country-level institutional environment (i.e., regulatory, cognitive, and normative) and two types of hospitality entrepreneurship (opportunity-based vs. necessity-driven). Logit regression analyses on a multi-sourced dataset indicate that the three dimensions of institutional environment had different effects on hospitality entrepreneurship. Specifically, the regulatory dimension positively affected opportunity-based entrepreneurship; however, its effect on necessity entrepreneurship was negative. In contrast, the normative dimension had a negative effect on opportunity entrepreneurship and a positive effect on necessity entrepreneurship. The cognitive dimension had no significant relationship with either opportunity or necessity entrepreneurship in the hospitality sector.