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• We develop and test a DEA model embedding eWOM among the outputs. • Including eWOM leads to differences in the mean and ranking of hotel efficiency. • Hotels improving in the efficiency ranking are less than those decreasing. • eWOM as an output of DEA models generates differentiated impacts across hotel classes. • e-WOM could inform Strategic Performance Measurement Systems. This paper develops and tests an innovative DEA model in the hospitality sector, by originally embedding online customer ratings among the outputs of the model. Based on a sample of 268 independent hotels located in Rome (Italy), we test a eWOM-informed DEA model and find that the introduction of online ratings among the outputs of the model significantly affects the assessment of hotels' efficiency regardless of hotel category. The efficiency rankings generated by the DEA models embedding eWOM are radically different compared to those resulting from DEA models exclusively based on financial variables. The number of hotels improving their position in the efficiency rankings is lower than the number of hotels decreasing in the ranking. However, the average efficiency variation is positive and higher for 2- and 3- stars hotels than for 4- and 5- stars hotels. Implications for researchers in hospitality and tourism, managers and practitioners are discussed. [ABSTRACT FROM AUTHOR]