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During the 1990s, interest in human resource management (HRM) within the hotel industry has increased. This article examines the relationship between HRM and performance in the UK hotel industry. Data from over 200 large hotels provide a single industry representative study, showing that the relationship between human resource management and performance is dependent on the business strategy the hotel is pursuing. Hotels which take a quality focus within their business strategy and HRM were found to perform best. The key findings of the data show that where cost control is seen as the key to business strategy, HRM is ineffective, highlighting the need for HRM to be incorporated within the business strategies of hotels. HRM was found to be universally relevant within the hotel industry and hotels with an identifiable strategy, an ethos of service quality and a high number of HRM practices performed best. The results suggest that, in larger hotels within the industry, high performance is related to the adoption of a coherent package of HRM practices, coupled with a business strategy that focuses on the enhancement of quality service.