A novel CrtZ carotenoid hydroxylase, isolated from Brevundimonas vesicularis DC263, is provided that is useful for the production of hydroxylated carotenoids. Additionally, a previously identified hypothetical protein from Novosphingobium aromaticivorans has found to have carotenoid hydroxylase activity. Both hydroxylase genes exhibit low homology in comparison to other CrtZ hydroxylases previously reported. Expression of the hydroxylases in heterologous host cells enabled production of hydroxylated carotenoids.