In this research study, the authors examine the impact of Entrepreneurial Orientation (EO) on hotel performance, specifically in the context of Jaipur, Rajasthan, India. A quantitative approach was taken, surveying 88 hotel managers who rated the structures on a 7-point scale. The dimensionality of the scales was evaluated using factorial analysis, and the authors investigated the effect of absorptive abilities on entrepreneurial propensity using factorial scores generated from Exploratory Factor Analysis. The results suggest a direct relationship between EO, Business Performance (BP), and absorption capacity (ACAP*EO) on BP. However, there was no direct relationship found between ACAP and BP, indicating that the association discovered in this study is a moderator-only effect. The interaction regression coefficient was negative, indicating that absorptive capacity reduced the effects of EO on beach hotel performance, likely due to their competitive aggressiveness. The study indentify EO attributes of “innovation, risk-taking, proactivity, and autonomy” positively impacted performance. These findings suggest that entrepreneurial strategies can significantly impact hotel performance, and that absorptive capacity plays a moderating role in this relationship.