The surrounding of the hotel will not be very pleasant and this alone is necessary to drive away clients into other competing hotels. The costs of proper disposal of the waste are also high in some instances causing the overall production cost to be high.A better approach to managing the disposal of waste in order to reduce the overall production cost by the hotel and other industries is through recycling of waste products. Recycling is the process whereby the waste materials from industry are collected and channeled back as raw materials for the production of new products (Townsend, 1993, p10). These materials would otherwise be buried or burnt as a means of disposal. The recycling process has three main steps. The first is to collect the materials that can be reused. There are those materials that seem to be too won out that do not need to be recycled. The next step is to process the materials into a form that can be reused and the last step is to obtain and use the recycled materials. These are basically the processes involved in recycling in hotels (Townsend, 1993, p10). A point of concern is then to consider how recycling of materials can be effectively adopted by the hotels and how this adoption helps them in maximizing their returns. This is the major issue addressed in the paper.The cost of production in barely all sectors of the economy has increased posing economic challenges to organizations in various industries. The cost of raw materials, as well as that of transportation, has increased in the recent past largely contributing to this increase in the cost of production. Various industries produce wastes that are discharged to the environment posing health problems. The supposed consumers of the products of a given company will develop a negative image of the company if it has a filthy surroundings. It is then required that the industries adopt asystem of disposal of waste that does have an adverse effect on the environment.