The Philippine tourism sector significantly contributes to the national GDP, hence continuous improvements is necessary to achieve competitive advantage within the region, evidently the hotel industry plays an integral role in this objective. Several studies posits that effective Supply Chain Management (SCM) is crucial for competitive advantage and customer satisfaction in the hotel industry. Given today’s technological advancements, integrating technology into SC operations is imperative. This study investigates the nuances of Internet of Things (IoT) integration within Hotel Supply Chain and its perceived contribution to supply chain performance from the perspective of various SC functions. This research posits that IoT integration can foster competitive advantage in hotel supply chains, enhancing their reliability, responsiveness, realignment, and resilience against disruptions. The analysis revealed a consistent, moderate perceived contribution of IoT integration across all four SC performance dimensions: Responsiveness, Reliability, Realignment, and Resilience. Further analysis indicated: Logistics demonstrated the highest overall perceived IoT contribution particularly strong in resilience, highlighting IoT’s role in tracking and disruption management. Demand Planning showed the highest mean for realignment suggesting IoT’s strength in data analytics for market adaptation. A significant difference was also noted for resilience across functions. These findings emphasize understanding each supply chain function’s unique needs for effective IoT implementation. The results offer valuable insights for hotel operations aiming to strategically leverage IoT to optimize supply chain performance and gain a sustained competitive advantage in the dynamic hotel industry. Future research should delve deeper into factors driving these functional variations and explore tailored IoT applications.