To assist hotel manager better human-resources practices implement and enhance organization performance, the purpose of this study is to identify the key factors of performance appraisal for restaurant employee in the hotel industry. Starting from reviewing related references and interviewing industry experts to collect information both in theory & actual practice, an indicators list has developed in consensus as result of the first phase. Main factors and sub-factors have identified through AHP process and the weightings as well. Analysis is based on expert questionnaire, which 100 delivered to managers or supervisors of restaurant in hotel, and 26 are valid. The conclusions of the study are listed as below, 1. Established indicators list by reviewing related references, theories and experts interview which consisting 21 key indicators as most suitable indicators for restaurant employee in hotel industry. 2. Personal characteristic indicator is the main factor of performance appraisal in hotel industry identified by the study, followed are result oriented factor and behavioral factor. 3. Established assessment weighting system for the main and sub-indicators by using AHP. 4. Developed a new performance appraisal form for hotel management as a reference, which each indicator consist different weighting of assessment.