This article presents the results of the “The New Face of Hotel Stein“ project, which was carried out as part of the grant title ”Innovation Vouchers“ for a public tender in research, experimental development and innovation in the Karlovy Vary Region in the Czech Republic. The main objective of the proposed project was to reduce the effects of seasonal fluctuations and increase the competitiveness of Hotel Stein. The article presents an analysis of the project results, and contains a number of methods that can be taken as an approach to be used also by other businesses. The first section is the theoretical framework, and deals with conditions for the innovation process in the Czech Republic, as well as the innovation process through innovation of services and further issue of knowledge management as a challenge for innovation. After a brief introduction of the project, there is a detailed examination of the methods used for each of the outputs, which are then included in the results section. The recommendations section comprises a proposal for a new package and a new product at Hotel Stein, as well as a business plan that includes specific proposals for innovation of processes, products and services.