Actuality. Currently, the hospitality industry, including the hospitality industry, is dynamically growing and becoming an important component of the national economy. The potentially high return on relatively low initial investment makes the investment attractiveness of the hotel business to investors. When creating hotels, investors should determine the legal form of business management, develop an organizational and economic mechanism of enterprise management, which will allow maintaining and strengthening the firm’s stable position in the competitive market, to meet the needs of consumers, to adequately and promptly respond to changes in the environment and to develop steadily. The subject of the research is the peculiarities of choosing the optimal legal form of management in the hotel business. The purpose of the study is to determine the factors influencing the choice of legal forms of entrepreneurship in the hotel business. Research methods. The research was conducted by working out acts of Ukrainian legislation, scientific publications on hotel management, statistics data, and expert assessments. Results. The main theoretical and practical results that determine the novelty and practical significance of the study are to determine the legal form of business as one of the key elements in the effective management of the hotel. Conclusions and Discussion. It is established that the organizational and economic mechanism of management and in particular the legal form of entrepreneurship is one of the important factors for ensuring the long-term competitiveness of hotels. The choice of the optimal legal form of entrepreneurship depends on the scale of the business and other factors.