The stagnation of competitiveness among non-star hotel MSMEs in Bali has emerged as a critical issue amid the acceleration of global digital tourism. In the face of pervasive digital disruption, non-star hotels confront a "Digital Readiness Gap" that threatens their very existence. This study investigates the Digital Readiness Gap in hospitality MSMEs through a qualitative case study of Pulau Bali Hotel Denpasar. Using the Resource-Based View (RBV) lens, data were gathered from five key informants and analyzed thematically. A qualitative descriptive approach was utilized, involving in-depth interviews with five key informants comprising hotel owners, operational managers, and operational staff. Data were analyzed thematically to map the integration of internal resources with appropriate technologies. The novelty of this research lies in the development of a 'Class Upgrade' roadmap, which was synthesized from the thematic findings, and delineating a three-stage transition from manual operations to digital maturity: (1) Digital Literacy Foundation (2) Operational Automation and (3) Strategic Integration with Star-Rated Standards. Each stage specifies required resources (financial allocation, training hours, technology procurement), measurable indicators (staff certification rates, double-booking reduction, guest satisfaction scores), and evaluation benchmarks against Minister of Tourism Regulation No. 4 of 2021, transforming the roadmap into an empirically grounded, actionable framework.The findings provide yield strategic implications for hotel managers undertaking operational modernization, as well as for local governments as a foundation for MSME digital acceleration policies. The urgency of this research resides in efforts to strengthen local economic resilience, enabling these enterprises to transform into internationally competitive and sustainable business entities.