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The paper discloses the expediency to determine the organizational and economic principles of innovation development processes in national institutions of hotel and catering business. There were disclosed the role of innovation in enterprises of hotel and restaurant business. In the article has been done procedure for determining the organizational and economic mechanism of innovative development processes of enterprises in these areas. On the basis of the studies also there have been identified the priority of innovation development areas, activation of innovative processes, and factors of innovative technologies implementation in local enterprises of hotel and restaurant business. [ABSTRACT FROM AUTHOR]