Environmental protection and environmental sustainability are becoming increasingly important factors in the hotel business and their competitiveness, in a market that brings numerous benefits. Environmental sustainability is, increasingly, considered one of the most important functions of the hotel business, as well as communication and marketing, which attracts a larger number of guests. Some of the key aspects of hotel environmental sustainability are performance and environmental sustainability indicators, as well as hotel management of environmental performance in order to establish efficiency in that process. The principal question arising is how environmentally sustainable business affects hotel performance, and what are the most important indicators of the environmental hotel business. The aim of this article is to offer an insight into, and analysis of, performance and indicators of the environmental sustainability of hotels through the relevant literature. A case study from Serbia is used to point out the complexity and the significance of these indicators in the hotel business, as well as to emphasise the importance of environmental reports in the case of Serbia. The findings of our study are significant because they help hotel managers identify new opportunities for employing more sustainable processes for saving resources.