Clients prefer to pay for a service/product which displays the best benefit-cost ratio( Jamshidi and Hussin, 2016a, b; Naumann, 1995). According to Pizam et al. (2016), the cost ofkeeping an existing customer is five times lower than that of attracting a new one. As Reichheldand Sasser (1990) argue, with a 2 percent increase of customer loyalty, costs would bereduced by 10 percent. In contrast, service quality, when poorly managed, can be an importantfactor in undermining clients’ loyalty to a hotel (Berezina et al., 2012). Wu and Ko (2013)suggest that hotel managers encounter problems in measuring and improving their customerfriendly service performance because of the lack of an integrative conceptual model and a goodmeasurement scale.Moreover, service quality itself is a variable dependent on contextual variations, because clientsmay have different expectations of services provided in five-star hotels compared with those infour-star hotels. An underdeveloped topic, which can shed light on this situation, is acomparison between four- and five-star hotels in terms of the effect of outcome quality onloyalty by considering the mediating role of perceived value. The present study, given this gap inthe literature, tries to investigate the impact of outcome quality on loyalty in four- and five-starhotels in Kuala Lumpur, taking into account the mediating role of perceived value andcomparing clients’ viewpoints.