Hotels are a key element of the tourism industry. Hotels are the most common form of accommodation for tourists and the hotel industry is intricately to tourism. A review of the academic literature indicates that existing research is primarily focused on sustainability in tourism, but very few studies have analysed the environmental dimension of sustainability in hotels in Australia, an important facet of the Australian tourism industry. The paper presents the findings of the influence of stakeholders on environmentally sustainable policies and practices (ESPPs) in the Australian hotel industry. One-on-one interviews were conducted with hotel managers as a representative sample of Australian hotels in Melbourne, Australia. The selected sample for the research comprised managers who manage approximately 60 hotels. The data was collected through in-depth interviews. It was then transcribed, coded, and analysed with NVIVO, a computer-aided qualitative data analysis software program. The sample size ensured representation by different segments of the hotel industry to include international chain-affiliated hotels, Australian chain-affiliated hotels and independent hotels. An analysis of the findings suggests that owners and shareholders are the biggest influencers as their investment takes primary importance. Other key stakeholders such as guests generally play a secondary role in influencing the ESPPs of hotels. ESPPs should lead to well-intentioned initiatives and practices that are undertaken by stakeholders to create drivers for change to contribute to environmental sustainability.