There are growing concerns on environmental management in hotel industry. However, not much study on environmental management within the context of Macau hotel industry has been done. This research aims to find out the environmental awareness of Macau hoteliers, and environmental initiatives that have been implemented in Macau hotels. Moreover, it seeks to identify the obstacles and challenges that Macau hotels are facing. The research gained insights from 31 hotels in Macau. Results showed that hotel owners and managers have certain \(though varying\) level of environmental knowledge. However, most hotel owners and managers are very active to apply environmental policies that contribute to cost savings. Environmental initiatives such as energy conservation bulb use, active system to detect and repair leaking facilities, and water conserving fixtures have been widely implemented in Macau hotels. Environmental initiatives such as solar energy use, leftover recycle and waste water reuse program are not so widely implemented. Generally, hotels in Macau are facing financial constraints and fear that the implementation of environmental initiatives may bring negative impact on guest’s hotel experience. The research also discusses their external support for hotel greening in Macau. Participating hotels also gave suggestions for government and other related organizations in regard to encourage hotels to go further in environmental conservation.