In order to sustain and grow in the competitive business environment, attracting new customers is the end. In hotel industry, customer satisfaction mainly depend upon a host of factors that have been taken under the study such as service quality, value for price, attitude of staff, accommodation, food quality, security, parking and cleanliness. The main purpose of this study is to investigate how the customer satisfaction ends in loyalty which in turn helps in sustainable business advantage in hotels in Odisha. A purposive sampling method has been used to collect data from 100 guests from various classified hotels in Odisha. Based on the objectives of the study, the data was analysed using statistical tools such as descriptive statistics and factor analysis. Based on the findings, appropriate remedial measures are suggested to enhance customer satisfaction in the hotels.