This study mainly focuses on the contribution of hotels to the Ethiopian tourism development byrntaking five star hote ls as its target. The researcher used both qualitative and quantitative methodsrnand employed mainly primary data. The data collection methods which are used to gather thernrequired information include: participant observation, both structured and unstructured interviewrnand questionnaire. The questionnaires were given to both sample local and international touri stsrnas well as the industry workers at random basis. Observation is used as the only so urce ofrnobtaining data from one of the target hotels, Sheraton Addis Hotel, because of getting nornpermission to conduct interview and distribute questionnaires upon the internal problem of thernorganization.rnThe researcher has examined the different issues related to the status of service provisions torntourists and customer satisfaction in the target hotels. Accordingly, it is found that the differentrntourist service provisions in both ICAH and HAH are not standard ized enough to meet the needsrnof touri sts though some of the services are relati vely better than the others. Comparati ve lyrnspeaking Sheraton Addis Hotel offers better services to tourists than lCAH and HAH do. Thoughrnthe different touri st service provisions fail to meet the international standards, all the three targetrnfive star hotels are found to contri bute a lot to the development of Ethiopian tourism by hostingrndifferent tourists the majority of whom are of international in terms of their nationality orrnresidence.rnFinally, the researcher fo rwarded some recommendations in order to mll11mlZe the alreadyrnidentified problems associated with different attributes within the target hotels so that the hotelsrncould improve customer sati sfaction in particular and contribute by far much better than ever tornthe Ethiopi an touri sm development at large.