The world is currently battling the challenge of environmental degradation which is rising at an alarming rate. The situation is greatly attributed to poor waste management. The hospitality industry being a major consumer of resources contributes a lot towards waste generation. Regardless of the high level of waste generation, a lot of hotels continue to use improper waste management practices. The purpose of this study was to examine the effect of waste management practices on operating cost of classified hotels in Nakuru County, Kenya. The study sought to determine the effect of waste reduction strategies, waste composting, and waste collection and disposal on operating cost of classified hotels in Nakuru County, Kenya. The study also ascertained the moderating effect of stakeholder cooperation on the relationship between waste management practices and operating cost of classified hotels. The study adopted descriptive survey research design. The study population comprised of 61 classified hotels in Nakuru County. Structured questionnaires and semi-structured interview guides were used to gather data. Quantitative analysis employed descriptive and inferential statistics. The research revealed that waste management practices affect operating cost of hotels (R2 = 0.467, p = 0.000). Waste reduction was found to have a negative and statistically significant effect on operating cost (β = -0.167, p = 0.021). Waste composting was found to have a negative and statistically significant effect on operating cost of classified hotels (β = -.161, p = 0.030). Waste collection and disposal was found to have a positive and statistically significant effect on operating cost of hotels (β = 0.299, p = 0.001). Lastly, stakeholder cooperation was found to have a statistically significant moderating effect on the relationship between waste management practices and operating cost of hotels (R2 = 0.532, p = 0.019). Therefore, the study recommend that hotels should prioritize effective waste management practices ascertained to be waste reduction, recycling and waste composting in order to curb the challenge of increasing operating cost. The research also recommended that national waste management policy makers should enact policies that facilitate implementation of effective waste management practices recommended by the study. Keywords: Waste management practices, waste reduction, waste composting, waste collection and disposal, stakeholder cooperation, operating cost
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