This paper has a two-fold purpose: to explore the extent of inclusion of performance appraisal practices as perceived by the employees working in sample hotels and to find if these practices depend on the organisational demographic characteristics. Based on a survey of 396 hotel employee’s perceptions on performance appraisal practices were assessed by 20 practices and 5 demographic variables. To find the association of the demographic variables with performance appraisal practices Bivariate test was used. Results indicated that performance rating is based on objective ; Performance is Proper Evaluation ;There are set standards for my job; Employee performance is easy to measure ;Performance is Continuous Monitoring ;The performance appraisal system is used to set my performance goals ;Modern methods are used to evaluate the employees ; All employees in the business are evaluated may constitute the most important performance appraisal practices in the Indian hotel industry. Further, the results indicate that there is a negative association between the number of staff and most performance appraisal practices variables these findings reveal that the hotels having a large number of staff rated the additional importance of performance appraisal practices as compared to hotels with less number of staff. The study makes a modest effort to add statistics to the little empirical information available concerning the performance appraisal practices in Indian hotel industry.