AbstractIn today's dynamic business milieu, the imperative of eco‐consciousness in hospitality cannot be overstated. This study focuses on Lebanon's burgeoning hotel industry, investigating its journey towards sustainability. Through qualitative content analysis and interviews with eight hotel managers, we unveil a crucial revelation: the integration of green practices not only enhances customer satisfaction but also engenders loyalty and positive referrals. This strategic pivot not only bestows hotels with a competitive edge but also positions them as champions of eco‐friendly experiences, resulting in tangible financial benefits and an expanded market share. Consequently, this fosters environmental sustainability within the sector, echoing its broader implications in environmental management discourse. Moreover, our research significantly contributes to institutional theory and stakeholder theory, offering valuable insights into the antecedents and consequences of green initiatives within organizational contexts. By delving into the intricate dynamics between institutional pressures and stakeholder expectations, the study provides a nuanced perspective on the drivers behind the adoption of sustainable practices in Lebanese hotels.