In this paper, the innovative two-stage procedure of Simar and Wilson (2007) is used to estimate the efficiency determinants of Portuguese hotels. In the first stage, the hotels’ technical efficiency is estimated with DEA (data envelopment analysis) in order to establish which hotels have with the most efficient performance. These could serve as peers to help improve performance of the least efficient hotels. We rank these hotels according to their total productivity for the period 1998-2005. In the second stage, the Simar and Wilson model is used to bootstrap the DEA scores with a truncated regression. Managerial implications arising from the study are considered.