Under increasing environmental pressure, hotel firms need to improve their ability to access international alliances while maintaining good performance for sustainable development. This paper uses survey data from 784 hotels running at different levels of service in China to test the hypothesis in an integrated analytical model, and the findings show that the impact of international alliances varies with different levels of green hotels. Despite operating in the same sector, hotels running at different levels of service vary their respective tactics to gain sustainable competitive advantage and achieve significantly different results. This study intends to inform hotel managers in obtaining specific performance goals by developing absorptive capacity, and by choosing the most suitable alliance for their level of operation.