Tourism and hospitality benefits local economies substantially by improving foreign exchange earnings, creating employment and investment opportunities, increasing government revenues, developing a country's image and supporting all other sectors of the economy as well as local communities. This paper explores the influence of technological alliances on the growth of hotel industry based on a study of hotels in Eldoret town in Kenya. The study adopted a descriptive survey research design with a target population of 220 drawn from the hotel industry in Eldoret town. A sample of 112 respondents was drawn proportionately from four categories of hotels using stratified random sampling technique. A semi-structured questionnaire was administered to collect the required data. The collected data was then analyzed using both descriptive and inferential statistical techniques with the aid of the Statistical Package for Social Sciences (SPSS) computer program version 20. Multiple regression analysis was also used to analyze the data. The findings were presented in frequency tables. From the study findings, it emerged that technological alliances increased the hotel sales, profits, product/service quality and reduction of costs. It had also enhanced market share and competitive advantage. The study recommends the need for hotels to adopt technological alliances in order to reduce operational costs and improve the quality of their products and services.