This study looks into the relationship between firm growth and profitability in the hotel industry in Taiwan. Profitability in this study consists of return on assets (ROA), return on equity (ROE), and return on sales (ROS). Firm growth has two variables: sales growth (SG) and asset growth (AG). Because of the booming of the tourism industry due to the unrestricted travel between two sides of the Taiwan Straits, the hotel industry in Taiwan is a good example of the relationship between growth and profit rates. By understanding this relationship, local or foreign investors can invest in the stocks or the businesses of the hotel industry. It also gives hotel managers the ability to make decisions about firm growth and profit. The outcomes of the panel regression tests indicate that firm growth and profitability are directly related. A positive profit rate is a good path for firm growth. Moreover, when firms grow, profits rise.