Circular economy (CE) practices aim to limit the negative impact of industries by reducing both the use of non-renewable resources and the wastes resulting from companies’ activities. In a hospitality context, hotels, restaurants and other companies can implement a range of practices with the intention to achieve a more circular business model. In this research, we conduct an online experiment to empirically test the effect of hotels’ CE practices on guests’ attitude and willingness to pay a price premium (WTP). We show that the “3Rs” CE practices, (Reduce, Reuse, Recycle) do not lead to higher WTP. By contrast, the CE practices that involve a “Rethink” or “Redesign” component of the hotel processes or infrastructure do in fact increase WTP. By using a mediation analysis, we also show that attitude towards the hotel mediates the effect of CE practices on WTP. Our research has concrete implications both for hotel owners and managers who wish to implement CE practices in their hotels and for academic researchers in hospitality.