International Journal of Economics, Commerce and Management United Kingdom Vol. IV, Issue 7, July 2016 Licensed under Creative Common Page 455 http://ijecm.co.uk/ ISSN 2348 0386 COMPETITIVE STRATEGY AND ITS IMPACT ON HOTEL PERFORMANCE: A PARTIAL LEAST SQUARE APPROACH ON HOTEL MANAGERS IN BALI, INDONESIA Nila Krisnawati Doctorate Program in Management, Faculty of Economic and Business, Universitas Padjadjaran, Bandung, Indonesia nila.hidayat@gmail.com Ernie Tisnawati Sule Doctorate Program in Management, Faculty of Economic and Business, Universitas Padjadjaran, Bandung, Indonesia Erie Febrian Doctorate Program in Management, Faculty of Economic and Business, Universitas Padjadjaran, Bandung, Indonesia Meydia Hassan Doctorate Program in Management, Faculty of Economic and Business, Universitas Padjadjaran, Bandung, Indonesia Abstract The purpose of this study is to examine the influences of competitive strategy (cost leadership and differentiation) toward business performance from the local chain hotel manager’s perspective in Bali. A Partial Least Square was used in this study to analyze 117 data. The results advise that in conducting its businesses, the competitive strategy impact the performance of chain hotels in Bali. However, a comprehensive interpretation of these implementation will be analytical for the success of a dynamic hotel strategy. This is one of the few research studies, to assess competitive strategy and business performance of local chain