Today an increase in the demand for ecological goods and services is one of the trends of the modern economy. The hotel business is no exception. This article gives a brief review of the conditions of usage green concept in the hotel industry and advantages of the "green" hotels. Their development contributes to increasing the competitiveness of hotel services and attracting new customers. The article shows how green investment in European tourism sector can improve resource efficiency and minimize environmental degradation. Much of the economic potential for green tourism is found in small and medium-sized enterprises (SMEs), which need better access to financing for investing in green tourism.