Purpose: Organizational learning (OL) represents the real value and the heart of strategic management, the focal point to keep track of international development. This paper aims to investigate the effect of knowledge management (KM) on the development of OL capability (OLC) in international hotels installed in Algeria. Design/methodology/approach: This deductive descriptive case study research examines the impact of KM, using knowledge conversion process (KCP) on the development of OLC. In all, 70 expatriates were targeted to respond to questionnaires, while only 47 were valid for analysis. Multiple regression analysis is used to analyze the influential processes on OLC. Findings: The socialization, externalization and internalization have a direct positive significant effect on the development of OLC. Socialization is the major influencing factor. However, the combination has no effect on OLC. In sum, KM has an impact on the development of OLC in international hotels in Algeria. Practical implications: Exhibiting the strong interdependency between KM and OL, expatriates emphasize on KM as the learning facilitator. The international hotels keen to realize KM as major process to build OLC. Socialization and internalization reinforce learning by providing primordial sophisticated tacit knowledge. Externalization generates expertise and strategic knowledge. Originality/value: First, the research confirms the effect of KM process using KPC on OLC, stimulating learning at all levels; especially, in a developing Arab country, emphasizing the research's theoretical contribution. The research is of high contribution, first of a kind in exploring the development of OLC in international hotels in the Algerian context; it is a newly emergent market, in its infancy stage, and an alternative that Algeria tries to boost to steer away from petroleum dependency.