Dissertation (Master of Business Administration)This study has intended to investigate the relationship between employees’ perceptions on customer services and customers’ loyalty: A case study of Malaika Hotel. A cross-sectional research design and explanatory design was adopted; a sample size of 138 respondents was obtained through a purposive and systematic random sampling. The study has used a quantitative method for data analysis. Statistical Package of Social Sciences (SPSS) version 23 was used to analyze the data. Findings have revealed that employees had positive perceptions about the importance of having a good customer service at Malaika hotel. Findings pointed out that, there was a good customer service level at the study area as the majority of customers were satisfied with the customer service. Furthermore, findings have shown that there was a high level of customer loyalty, as customers were ready to say positive services offered by the hotel, and recommended friends and relatives to use the services provided by it, as well intended to continue using it for a long time. Results have shown that there was a very strong positive relationship between employees’ perceptions on customer services and customers loyalty as well as a positive relationship between employees’ perceptions on customer services and customers’ service level at Malaika Hotel. This study also, recommends the hotel management to identify customer needs, desires, interest and wants, which would help the hotel to provide good services to customers, that would satisfy them and make them loyal, as well to provide training and motivate employees which could help to improve the courteous of staff.