Diversity management has become a strategic priority in the hospitality industry, particularly in regions marked by increasing demographic variation. This study investigates the perceived effects of diversity management on the work environment in Department of Tourism (DOT)- accredited hotels in Western Pangasinan, Philippines. It also examines the relationship between administrative diversity management application and employees’ experiential perceptions. This quantitative-descriptive research employed an adapted and expert-validated instrument, refined through pilot testing. Using purposive and stratified sampling, data were collected from 53 participants (10 supervisors/managers and 43 employees) across five DOT-accredited hotels. Four sub-variables were examined: employee engagement, creativity and innovation, stereotyping and bias, and employee retention. Analytical tools included mean, average weighted mean (AWM), one-way ANOVA, and Pearson correlation. The study revealed that diversity management was perceived to be highly effective, particularly in fostering stronger employee engagement and enhancing creativity in the workplace. Overall, its impact on the organizational environment was regarded as very positive. Nevertheless, the findings also indicated that administrative strategies showed a weak and statistically non-significant relationship with employee perceptions, suggesting that structural approaches alone may not be sufficient to shape employees’ views. Among the demographic factors considered, marital status emerged as the only variable with a meaningful influence, highlighting its relevance in understanding how diversity initiatives are experienced within the hospitality context.The study suggests a disconnect between diversity policies and their perceived impact, highlighting the need for inclusive implementation. Limitations include the small, localized sample. The findings emphasize the importance of participatory diversity planning, inclusive leadership training, and institutional mechanisms to ensure meaningful and sustainable diversity outcomes in hotel organizations.