The main objective of the study was to assess the practice, identify the challenges, and measurernthe supply chain management performance of Sheraton Addis hotel. The purpose of supply chainrnmanagement is to reduce costs, introduce innovative products, make the operations runrnsmoothly, meet uncertain demand with rapidly delivery and satisfy customers in order tornincrease revenue, allowing businesses to confront the competitive market. The study adoptedrnqualitative research approach, and used descriptive & explanatory research design. The datarnwas analyzed using both descriptive and inferential statistics. Primary data was collected fromrnSheraton Addis hotel associates using pre-tested and self-administered questionnaire. Thernresearcher used census method, as the numbers of respondents were 41 and collected all therndata accordingly. Statistical package for social science version 26 software was used to analyzernthe data. According to the findings of the study both the supply chain management practice andrnperformance of Sheraton Addis hotel found to be influential or very good. The correlationrnbetween aggregated factors affecting the supply chain management and supply chainrnmanagement Performance of Sheraton Addis Hotel also found to be positive and significant. Thernmultiple regression analysis result also discovered that from the eight independent variablesrnonly environmental uncertainty found to be significant to affect the supply chain managementrnperformance of Sheraton Addis hotel. The researcher also recommended that Sheraton Addisrnshould make every effort to advance its supply chain management, mitigate the main internalrnand external challenges and improve the supply chain management performance so as to berncompetitive enough in the hotel industry.