The study sought to determine the effect of water conservation practices (WCP) on hotel performance (HP) in conservation areas in Uganda. Anchored on the Natural Resource-Based View (NRBV) theory, the study used a correlational research design with quantitative methods about WCP and HP. Krejcie and Morgan's 1970 sample size determination table was applied in selecting 265 participants from a population of 851 employees, including managers, chefs, housekeepers, receptionists, and waiters in 19-star-rated hotels from the study area. These participants were selected using multistage sampling consisting of stratified, proportional, and simple random sampling. Data was collected via self-administered questionnaires distributed with the help of trained research assistants. Construct validity was evaluated through factor analysis. Data was subjected to descriptive and factor analysis in SPSS 25 and partial least squares structural equation modelling (PLS-SEM) in SmartPLS4 for modelling and hypothesis testing. The results indicate that WCP accounts for 52% (R2 =0.515) of the variation in hotel performance. Specifically, the results show that water conservation practices (P<0.001) had significant effects on hotel performance in conservation areas in Uganda. The blindfolding results confirm adequate predictive relevance, with the lowest Q² value at 0.511. Model fit is supported by Standardised Root Mean Residual - SRMR <0.08 and Normed Fit Index-NFI > 0.90. The findings of this study conclude with a confirmation that water conservation practices significantly enhance hotel performance in Uganda's conservation areas. The results of this study are useful to policymakers and industry practitioners by providing relevant insights in guiding decision-making to improve hotel performance. It also adds to the existing body of knowledge on the discussions relating to WCP and performance.