Hospitality industry has been changing rapidly as a result of changing economies, societies, and fast developing technologies "(Baum, Amoah, & Spivack, 1997)."To cope with these changes, employees need various skills and abilities. The industry will benefit from increased levels of formal education and training" (O'Mahony & Sillitoe, 2001). The aim of this study was to identify the relation between academic education and employees' performance in two Hotels in Iran. The results showed that, there is a significant relation between academic education and employees' performance in both hotels. Regarding job satisfaction, the finding of this study revealed that, providing job satisfaction for educated staff are much harder than uneducated one and in addition, an employee who is satisfied with the job has a better behavior and does the duty much better than dissatisfy employee. Furthermore, most of the respondents in both hotels believed that employee who has academic education knows work standards and implements them; meanwhile there is a positive relation between work commitment and employees' performance. Finally, according to the findings of research, there are some implications for managers as well as for further research.