Innovation globally gains its speed day by day and is now seen as the key to progress and development. In recent years, innovation in firms has showed a necessity of individual innovativeness. This necessity of innovative individuals is seen as a significant responsibility of hotel managers. Both individual innovative tendencies of managers and business innovation are of importance for the survival of the firms as well as competitive rivalry resulting in better performance. Thus, this study aims to find out the effects of managers’ innovative behaviour tendencies and business innovation on the non-financial business performance. A questionnaire survey was conducted on 22 five-star city hotels located in Ankara, the capital of Turkey. Factor, regression and correlation analyses were used to test the study hypotheses. The findings showed that the "resistance to change" dimension of managers’ individual innovative behaviour tendencies has a negative effect on the non-financial business performance while the dimensions of “leadership in ideas”, “openness to experience” and risk-taking” did not produce any effect on the non-financial business performance. The study also found that the hotels follow “customer focused” innovation, which shows the customers are at the centre of all the hotel operations. The study further showed that there is a positive and significant relationship between managers’ individual innovative behaviour tendencies and business innovation.