The paper explores the inherent aspects and imperatives of recycling in hotel industry. It aims to establish the relationship of such imperatives with business strategic and sustainable development of the industry. The research is empirical in nature where data is collected through local survey from Delhi-NCR region. It is duly supported by pertinent qualitative work and quantitative analysis. The findings so far suggest that frugal innovation and efforts at incremental level to address the recycling-of-wastage can bring-out tangible and sustainable results. This can also reap monetary benefits in terms of efficient processes and substantial profits. The paper highlights two main implications. The first option includes quick responsiveness with providing provision of Bio-digester which relatively small area for establishment and low cost generating considerable profit. The study enhances understanding the need to encourage developing a systemic approach of waste recycle along with frugal innovations in hotel industry pertaining to address the emerging issue of waste management.