The integration of artificial intelligence (AI) and the internet of things (IoT) is bringing revolutionary changes to the hospitality industry, enabling the advancement of sustainable practices. This research, conducted using a quantitative methodology through surveys of hotel managers in the Republic of Serbia, examines the perceived contribution of AI and IoT technologies to operational efficiency and business sustainability. Data analysis using structural equation modeling (SEM) has determined that AI and IoT significantly improve operational efficiency, which positively impacts sustainable practices. The results indicate that the integration of these technologies not only optimizes resource management but also contributes to achieving global sustainability goals, including reducing the carbon footprint and preserving the environment. This study provides empirical evidence of the synergistic effects of AI and IoT on hotel sustainability, offering practical recommendations for managers and proposing an innovative framework for enhancing sustainability. It also highlights the need for future research to focus on the long-term impacts of these technologies and address challenges related to data privacy and implementation costs.