Organizations are beleaguered by stiff competition, a dynamic market environment, and rapid technological changes that threaten the survival of businesses rambling to gain a competitive advantage. Past studies bring forth the role of innovation in services, crucial in driving tremendous growth in terms of economic activity. But, what contributes to innovation in services remains a sparsely researched area. The present study proposes a research model to examine the impact of organizational learning culture on service innovation performance in hotels with dynamic capabilities as a mediating variable. Structural Equation Modeling (SEM) is used for assessing the relationship between variables and validates the research model. The unit of analysis comprised individual employees working in four-star and five-star rated hotels located in the tourist-bound cities of Lucknow, Agra, and Varanasi in Uttar Pradesh (India). Empirical evidences support the positive role of dynamic capabilities in the relationship between organizational learning culture and service innovation performance thereby asserting the importance of developing distinctive capabilities for enhancing service innovation performance in hotels.