This study aimed at evaluating and demonstrating the feasibility of using Concentrated Solar Thermal technology combined with biomass energy technology as a hybrid renewable energy system to supply the process heat requirements in small scale industries in Sri Lanka. Particularly, the focus was to apply the concept to the expanding hotel industry, for covering the thermal energy demand of a medium scale hotel. Solar modules utilize the rooftop area of the building to a valuable application. Linear Fresnel type of solar concentrator is selected considering the requirement of the application and the simplicity of fabrication and installation compared to other technologies. Subsequently, a wood-fired boiler is deployed as the steam generator as well as the balancing power source to recover the effects due to the seasonal variations in solar energy. Bioenergy, so far being the largest primary energy supply in the country, has a good potential for further growth in industrial applications like small hotels.  When a hotel with about 200-guests capacity and annual average occupancy of 65% is considered, the total annual CO2 saving is accounted as 207 tons compared with an entirely fossil fuel (diesel) fired boiler system. The annual operational cost saving is around $ 40,000 and the simple payback period is within 3-4 years. The proposed hybrid system can generate additional 26 employment opportunities in the proximity of the site location area.   This solar-biomass hybrid concept mitigates the weaknesses associated with these renewable technologies when employed separately. The system has been designed in such a way that the total heat demand of hot water and process steam supply is managed by renewable energy alone. It is thus a self-sustainable, non-conventional, renewable energy system. This concept can be stretched to other critical medium temperature applications like for example absorption refrigeration. The system is applicable to many other industries in the country where space requirement is available, solar irradiance is rich and a solid biomass supply is assured.