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Abstract Despite the tremendous importance of hotel service innovation, guest’s perceived value, and return intention in the hospitality industry. literature has revealed limited research in this aspect in hotels. The aim of this study is to explore the influences of service innovation factors (innovative hotel types, customization of service, use of information technology, process innovation, marketing-focused innovation, brand differentiation, and pricing innovation) on guests’ perceived value and intention of returning to hotels. A conceptual framework for the study was constructed based on the pertinent literature review and the pilot study. The study relied on face-to-face interviews and questionnaires as tools for data collection. Interviews were conducted with six managers from different department in a sample of five-star chain hotels in Cairo. The survey was compiled based on previous studies, and it was distributed to hotel guests in eight different five-star chain hotels in Cairo (Le Meridien Pyramids, Fairmont Nile City Hotel, Ramses Hilton Hotel, Intercontinental Citystars Cairo, Four Seasons Hotel Cairo at Nile Plaza, The Nile Ritz- Carlton, Sheraton Cairo Hotel & Movenpick Hotel Casino Cairo). A total of 280 questionnaires were randomly distributed to a sample of guests who stayed in the hotels. Among the questionnaires returned, 220 were useable ones. The valid data were analyzed through Importance- Performance Analysis (IPA) using SPSS and Structural Equation Modelling (SEM) using AMOS. Findings revealed that innovative hotel types. use of information technology, process innovation, marketing-focused innovation, brand differentiation. and pricing innovation significantly impact guest’s perceived value. Also, the guests’ perceived value significantly affects their return intention. Additionally, hotel service innovation through innovative hotel types significantly impacts return intention. |