This study investigates the factors affecting environmental performance by examining the relationships among two factors which are the environmental management accounting practices and the environmental management system practices. The research model is examined using survey data from the hotel industry in Malaysia. Reliability analysis, exploratory factor analysis and confirmatory factor analysis were used to test the measurement scale while the structural equation modeling is used to examine the relationship between the predictor and the dependent variable. The findings indicate both key factors have direct effects on the hotel's environmental performance. The environmental management accounting practices and environmental management system practices significantly and positively related to environmental performance of hotels in Malaysia. The study also found competitive advantage to have a mediating role as environmental management accounting practices and environmental management system practices has a significant indirect effect on environmental performance thru competitive advantage. These findings could be useful references for hotel management as well as government bodies that are interested in promoting the green practices in a context of developing countries like Malaysia.