The hotel industry in Uzbekistan is undergoing rapid expansion, driven by ambitious national tourism targets and progressive economic reforms. As the sector scales to meet the goal of 20 million annual foreign tourists by 2030, the imperative to embed sustainability and green principles into its growth trajectory becomes increasingly urgent. This paper examines the current state of sustainable development in Uzbekistan’s hospitality sector, analyzes the existing policy and institutional mechanisms supporting green transition, and identifies critical gaps and systemic constraints. Drawing on international best practices and recent empirical studies conducted in the Uzbek context, the article proposes an integrated framework for improving mechanisms that drive sustainable hotel development. Key recommendations include establishing a mandatory national green certification system aligned with global standards, scaling up targeted green financing instruments, integrating circular economy principles into hotel operations, fostering public–private partnerships for capacity building, and leveraging digital technologies for environmental performance monitoring. The findings contribute to the scholarly discourse on sustainable tourism in transition economies and offer actionable pathways for policymakers, industry stakeholders, and researchers seeking to advance the green transformation of Uzbekistan’s hotel industry.