Abstract: Customers are important constituents in the hotel industry. In business environment where competition is fierce and customer preferences shifting, organizations come under pressure to pay attention to customers to achieve competitive performance. The purpose of the study was to investigate the effect of customer focus on hotel performance in Kenya. The study concentrated on high standard or four and five star hotels in Nairobi and employed a quantitative research design to determine the effect. A sample of 146 respondents comprising of senior managers including Chief Executive Officers, Line Managers (ICT, HR, Marketing, Food and Beverage and Room) out 234 target population in 39 hotels were aimed at but only 105 questionnaires were returned. Data was collected, classified and tabulated according to research objective. Afterwards, descriptive statistics using central tendency, measure of variability and standard deviation was utilized. Inferential statistics was used to find out level of association between independent and dependent variables. The study concludes that customer focus has positive effect on the performance of star rated hotels. Consequently, hotel needs to strategically align its processes to customer needs and develop a culture that attracts and retains them. The study recommends that hotel targets customer satisfaction as a matter of priority through developing an innovative system that connects it with customers, awards credit or points for use of facility and provide updates and feedback. It also recommends that hotel invests in developing capacities of staff for them to have competence to manage customers effectively.