The purpose of this study is to determine the relationship between knowledge management and an organization's marketing perspective and the growth of competitiveness in the service sector (Hotel) in 83 hotels in three Baghdad security districts, Iraq. The type of research is non-experimental, observational, cross-sectional, retrospective and descriptive. The Design is TransactionalCorrelational. Regarding Knowledge Management, 63.9% considered the perception level of the hotel company manager as high, followed by very high with 25.3% and 10.8% as low. Regarding Internal Marketing, 63.9% considered the perception level of the hotel company manager as high, followed by very high with 25.3% and 10.8% as low. Regarding Competitive Advantages, 68.7% considered the perception level of the hotel company manager as high, followed by very high with 22.9% and 8.4% as low. Of the 83 samples, 45% are public limited companies or sole proprietorships, followed by 11% from hotel companies with limited liability. At a 95% confidence level, knowledge management and internal marketing orientation are significantly related to developing competitive advantages in the hotel sector of three Baghdad security districts. The value of Sig. is 0.000