The hotel and tourism sector is one of the primary development drivers of the global economy, and certain African countries exploit it. Ethiopia, for example, employs this sector as one of its economic sources. However, exploitation is not as widespread as one might assume. This is because the sector has numerous obstacles, such as a lack of advancement, inability to adopt advanced technologies, frequent personnel turnover, and a lack of input, to name a few. As a result, hotel managers are expected to devise methods in order to profit from the industry. However, there is scant evidence that the Ethiopian hotel employs porter competitive techniques as a strategic reaction, and it is not supported by research. The goal of this study was to determine the impact of competing strategies on the performance of star-rated hotels in Ethiopia. Porter's generic strategic theories were applied in the study, and a descriptive and explanatory research method was adopted. The target population in Addis Ababa consisted of 78 star-rated hotel managers, 44 of whom were chosen via purposive selection. Frequencies, percentages, averages, and standard deviations were used to examine the data using descriptive statistics.. Explanatory, inferential analysis, correlation coefficient analysis and multiple regression analysis, the study discovered a significant association between cost leadership and hotel performances. r=0.620**,p=0.000, differentiation strategy and hotel performance r=.639**,p=.000, as well as focus and hotel performance r=.509**,p=.000.