Competition in the hotel industry is very intense. To survive in this highly competitive market, hotels must sustain their better than average performance over time—so called ‘sustainable performance’. To achieve and maintain such performance, hotels need to measure (monitor) their financial and non-financial performance. This paper argues that one way for hotels to achieve such performance is by collaborating with other organisations. Hence, the objective of the study was to examine the relationship between business collaboration and sustainable performance following the sustainability balanced scorecard concept, which includes financial, customer, internal business process, learning and growth, and social and environment perspectives. An online survey involving 85 hotel general managers was conducted to collect data from four- and five-star hotels located in Indonesia. Data analysis was performed using partial least squares. The results revealed that the relationship between hotel engagement in business collaboration and hotel sustainable performance in terms of internal business process, learning and growth, and social and environment perspectives was found to be positive and significant. Therefore, it can be concluded that business collaboration may assist hotels to improve their internal business processes, learning and growth, and social and environmentally related performances.