Purpose - The purpose of this paper is to examine the extent to which environmental management (EM) has been used as a facilities management (FM) tool amongst hotels in Macao, China. It also seeks to assess the relative priorities of hotel facilities managers in relation to the environment. Design/methodology/approach - The empirical data was collected via structured questionnaires distributed to facilities/general managers of hotels in Macao. Findings - The research findings reveal that although low customer demand, poor environmental knowledge and the lack of governmental regulations enforcing environmental practices are the reasons hindering hoteliers in Macao from practicing green, the major barrier is that hotel managers do not recognize the importance of environmental management to hotel effectiveness and competitiveness. Consequently, hotels are only interested in improving areas where there are direct financial gains and where there is a fiscal/legislative requirement. A fragmented approach to managing their environmental performance is also resulted. Practical implications - This paper provides a comprehensive discussion of the roles played by environmental management in improving a hotel's productivity and competitiveness and recommends ways to increase hoteliers' understanding of those roles. Originality/value - There is a scarcity of literature linking hotel FM and environmental management within the Asian context, especially within Macao. This study sheds light on the extent to which environmental management has been used as a FM tool amongst hotels in Macao. It also contributes to our understanding of the importance of improving a hotel's environmental performance for organizational effectiveness and competitiveness. This paper provides a good background and framework for future studies.