This “study analyses the effect of innovation on the firm value of hotels. Innovation is a critical element in today’s tourism companies (Sundbo et al., 2007; Martínez-Ros and Orfila-Sintes, 2009). It certainly helps firms reach and keep higher competitiveness standards (Aldebert et al., 2011; Hjalager, 2002; Kumar et al., 2008; Pulido et al., 2011; Rodgers, 2007; Zach et al., 2010) as well as growth (Love et al., 2011). In the context of hotel management, Chen (2011) points out that innovation appears to be the only means for an organization to convert change into opportunities and thus succeed. In a recent article, Hjalager (2010) describes innovation research in tourism as a young phenomenon, suggesting several research gaps that should be tackled in order to get further insights that contribute to consolidating the theoretical underpinnings of tourism innovation. Specifically, this author, among others, points out a research gap in tourism innovation that should attract more analysis: the relationship between innovation actions and their economic performance. This author explicitly raises the question of examining what types of innovation produce what level of results. In an attempt to add to the