With increased globalization, competition, higher customer turnover, growingrncustomer acquisition costs, and rising customer expectations in today 's competitive word,rnCRM is very important for several companies and received an increasing amount ofrninterest ({//long scholars and practitioners especially in recent years. Some companies havernreceived immense benefits from their investments in enhancing customer satisfaction and fill the hotel, guests loyalty 'ta the brand reduces the risk 0/ service variability,rnalley the development Ara social rapport with the provider, and the customization 0frnsenescence l their desiresrnprofitability. Hotels in Ethiopia are no exception. The purpose of this thesis is torn. investigate the application of Customer Relationship Management (CRM) in the local hotelrnindustry. A case, Sheraton Addis Hotel, is selected for the study. Samples are determinedrnusing a sampling formula and subjects are requested to Fill out a questionnaire. Inrnaddition. with the help of open- ended questions and observation, the researcher extractedrnfirst hand information. Secondary data sources are used to enrich the amount of gatheredrninstillation ion Till! researcher tried toxin out if CRM is implemented in the form of giving specialrnservices with the help of IT, one-to-one marketing, effective relationship building withrnguest, and discovering guest needs and meeting them by giving always new special servicesrn. could be II life saver/or hotel industry Till! results showed that after implementing customer relationship managementrn(CRM) gluiest satisfaction effected in guests' loyalty and retention. As guest stay longer theyrnbelly more, (and more(equivalently and this pushes lip the wallet share also. Similarly, the hotelrnkept owl some costs by retaining existing cyclometers