Current legislative regulations require the European hotel industry to establish intensity metrics and benchmarking systems for non-financial reporting of their ecological footprint. Water sustainability is a critical issue in this resource-intensive sector, necessitating optimized consumption practices. This study aims to assess current benchmarking practices, develop intensity metrics, and compare audit results. A systematic literature review was conducted, screening 928 peer-reviewed papers from Scopus and Web of Science using 40 relevant keywords. Applying exclusion criteria and in-depth content analysis, 48 key studies were analyzed. Findings indicate growing concern about water sustainability, with the dominant metric being water use per guest night (WUPGN). Additionally, water use intensity (WUI) based on floor area is essential for accurate benchmarking. Other input metrics, such as grey water or recycled water, remain largely unassessed. The analysis of studies conducting hotel water audits reveals a weighted average WUPGN of 419 L (1667 hotels), with consumption influenced by hotel size, operating type, and services. Contrary to prior research, this study finds that quality level does not significantly impact water use. Climate normalization and outsourcing must be considered for global benchmarking. Further research should refine reporting matrices and expand audits in under-researched regions for improved comparability and efficiency.