Business-Level Strategy and Customer Loyalty in the Nigerian Hospitality Industry: Evidence from Abuja Hotels

This research examines the effect of business-level strategy on customer loyalty within the Nigerian hospitality industry, using Abuja hotels as the study context. The hospitality sector in the North Central zone has experienced significant post-pandemic recovery pressures, prompting hotels to reassess their competitive strategies. The study employs a descriptive survey design, targeting hotel managers and regular guests of selected three-star and four-star hotels in the Abuja Municipal Area Council. A sample of 140 respondents comprising 60 managers and 80 guests was drawn through purposive and convenient sampling respectively. Structured questionnaires were used for data collection, and findings were analyzed using descriptive statistics and multiple regression. Results show that differentiation strategies, particularly those emphasizing service quality, customized experiences, and loyalty reward programs, have a significantly stronger effect on repeat patronage than cost-based competitive approaches. The study finds that service consistency and staff attitude are the most critical drivers of customer loyalty decisions. A positive correlation is established between strategic investment in service innovation and customer retention rates. The research concludes that Abuja hotels must anchor their business-level strategies on differentiated service delivery to build sustainable competitive advantages. Recommendations include employee service training programs and customer feedback integration into strategy cycles. Keywords: business-level strategy, customer loyalty, hospitality industry, Abuja, service differentiation.