This paper aims at presenting and analysing the performance appraisalsystems and the human potential development in hotelunits. It aims at integrating and updating many aspects of performanceappraisal while concentrating on the hotel units systemto prove the importance of human resource evaluation in hotelunits and the procedure that is to be followed by the enterprisefor further development of hotel employees. HR evaluation analysisis presented through relevant theoretical background on theevaluation method and the presentation of the practical problematicalissues in order to create an image for a whole evaluationsystem of HR in Greek hotel enterprises.