Operationalising the Circular Economy: A Mixed-Methods Validation of the Hospitality 360° Model

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Abstract

Background: The hospitality industry faces the critical challenge of transitioning toward sustainability without compromising profitability. While circular economy principles offer a theoretical framework for sustainable development, a significant gap persists between theory and integrated operational models that deliver verifiable business outcomes. Methods: This study employed a mixed-methods approach combining systematic literature review, expert validation with 9 industry practitioners, and longitudinal case study implementation across four hotel properties representing different market segments (luxury resort, urban boutique, beach resort chain, and rural eco-lodge). Data collection spanned 24 months, tracking performance metrics across six categories. Results: Implementation of the Hospitality 360° framework yielded substantial improvements: energy consumption decreased by 28.1%, water usage by 22.0%, waste diversion rates increased by 204.0% (from 25% to 76%), local procurement expenditure rose by 42.9%, employee turnover decreased by 48.6%, and guest satisfaction regarding sustainability initiatives improved by 26.5%. Financial analysis revealed an average payback period of 2.8 years and a 6.5% RevPAR premium compared to competitive sets. Conclusions: The Hospitality 360° model successfully operationalises circular economy principles, transforming sustainability from a cost center into a driver of competitive advantage. The framework provides a replicable roadmap for practitioners seeking to build resilient and profitable hotel enterprises in the conscious travel market.

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