Hotels can improve their service quality by enhancing employees' knowledge about customer's preferences and the corresponding service procedures. Service quality depends strongly on the ability of hotels to acquire, to develop, to accumulate, and to distribute knowledge assets. Despite the popularity of knowledge management in other industries, hotel-specific concerns have been largely neglected in the literature and knowledge management has just rudimentarily been implemented in hotels. Especially hotel chains, which have to deliver an overall quality standard in geographically distributed hotels, can exploit knowledge management's benefits. Nevertheless, the implementation of knowledge management requires considerations. This article describes knowledge management in hotels, presents case-studies and gives strategic advice and structural recommendations for its implementation. An examination of hotels' knowledge management requires theoretical underpinning. Therefore, this article provides reflections about knowledge and analyzes different dimensions of knowledge management in hotels. Further, it presents major influences on strategic and structural aspects of knowledge management in hotels and suggests structures for the implementation of a knowledge management.