Food-waste and food loss is a consumable food that is not used, and it occurs in both developed and developing nations like Ethiopia. The goal of this study was to make an assessment on the total generation of food waste from hotels in Bahir Dar and its environmental impacts and to suggest the best management option based on air emissions, acidification and eutrophication. The food waste management options evaluated were aerobic composting, and anaerobic digestion (AD). The environmental impact categories considered were global warming potential (GWP), acidification potential (AP) and eutrophication potential (EP). However, the study was limited to only assessment based on previous study and the sample taken from selected hotels in Bahir Dar. In this study the air emissions that contribute to GWP, AP, and EP were converted to an equivalent amount of CO2, SO2 and PO4, respectively. The study was based on a 68 kg of food waste as a functional unit for a case study found from the selected hotel. From an environmental perspective, i.e., the gaseous emission results indicated that anaerobic digestion would be the best option for food waste management, followed by composting. It were used to analyze the impact of food waste to the environment based on the two management options, which is Environmental Impact assessment versus life-cycle assessment . For GWP 17 kg of CO2-eq was released to the environment by the aerobic composting; however for anaerobic digestion scenario CO2 emission is dramatically decreased by 815.64 kg of CO2-eq, because the methane produced offsets the emission of CO2 by burning coal. For acidification and eutrophication scenarios anaerobic digestion (AD) has a lower emission to the environment with 0.00616 kg of SO2-eq and 0.0004017 Kg of PO4-eq. In addition, transportation also has an impact on the aerobic composting case with emission of 436.012 kg of CO2-eq to the environment. Finally, the researcher characterized the component and physical parameters of food wastes generated from Bahir Dar city hotels and recommends for future study to determine the total cost analysis and energy analysis for anaerobic digestion process for biogas production. Furthermore, the study also recommends it be done in other areas of developing countries.