This research aims to study the service quality management system in hotels in Addis Ababa. Thernreasons for doing this research are the growth of the hotel business, the increase of flow of tourists,rnand the increase of economic importance of the sector, which in turn requires the sector to give arncompetitive, and standard service quality. The major questions to be addressed are the qualityrnmanagement system of hotels, major problems in the hospitality industry methods to apply tornimprove the service quality. To find the answers the researcher selected 17 star hotels from 2-starsrnlocated in Addis Ababa. The researcher distributed questionnaires that focus on service qualityrnmanagement system in the selected hotels. The researcher found out that there is lack of servicernquality management, evaluation and monitoring system. Also, the hotels donâ€™t have system to tracernthe service quality problems and complaints placed by customers to solve them and makernimprovement in their quality management system. The findings were that there are problems withrnhaving proper quality methodology management systems that the employees are fully aware of,rnfully trained on, and having the full capacity to implement them. The implications of these resultsrnfor the hotel sectors are to know the roots of the service quality problems in the hotel sector, theyrnwill help hotels to know on which problems to focus on and improve their quality managementrnsystems based on the findings and achieve a better customer satisfaction.