Collaborative advantage is one of the main sources for sustaining competition in hotel businesses. Firms that have more collaboration can gain more innovativeness. This concept is highly necessary in service-based industries. However, there is a lack of research empirically investigating such issues especially in hospitality sectors. This study therefore focuses on the influences of supply chain collaboration on service innovation and firm performance in hotel industry. Data were collected form a stratified sample of 84 hotel firms in Bangkok, Thailand using cross-sectional survey in 2012. The statistical methods include confirmatory factor analysis and two-stage least square regression are applied and robust the statistical results. The findings indicate that collaboration has positively impact on service innovation and also firm performance by mediatory enhancing on service innovation in Thai hotel industry. However, service innovation does not influence performance. The results provide the significantly understanding on service supply chain collaboration and innovation performance in the hotel industry.