Management of hotel is a complex activity and the managers have to consider many aspects before they arrive at the decision for selecting the policies which have to be adopted. The main purpose of this study is to identify the aspects which are considered by the managers of the hotels which are operating in Nepal. In order to undertake this study, the responses regarding various aspects of hotel quality management were collected on a seven point scale from the managers of 129 hotels of Nepal. For analyzing the responses collected, Principal Component analysis was used. This study is novel in itself as no such study had previously been undertaken for studying the practices of quality management in the hotels operating in Nepal and is an original contribution by the researcher for the improvement of services which are being provided by the operators in one of the most important industry for Nepal.