Abstract: Most of hotels in Sri Lanka have utilized the social media with the aim of gaining competitive advantage. This study investigates how hoteliers views on utilization of social media as a marketing tool in Sri Lankan hotel industry. It was based on a survey of 331 executive offices in 98 star graded hotels in Sri Lanka that ranged from one-star to five-star. In conclusion the survey has shown that one star hotel is under utilizing the potential of the social media despite the fact that many of them have websites engaging with below 50 rooms. A major finding of this is that large size hotels (more than 50 rooms) have a higher probability of utilization of social media.