In the face of intense competition, the merit of Blue Ocean Strategy (BOS) towards the creation of value innovation and the ability to exploit the untapped market for firm’s survival is indubitable. The hotel industry is operating in a highly competitive environment in which customers give great emphasis on reliability and timely service delivery. Thus, managers need to adopt strategic drivers of performance in order to improve hotel services due to intense competition in hotel industry. Hotel managers can formulate and execute various business strategies in their hotels. These strategies aim to expand the performance levels of hotels by creating competitive advantage. The purpose of this study is to examine the relationship between BOS and performance of four and five star hotels in Kuala Lumpur, Selangor and Putrajaya, Malaysia. Findings revealed that there is a significance relationship between BOS and performance of the hotels. This study has contributed to the body of knowledge in terms of BOS studies in the hotel industry. Since the study of BOS was lacking in the hotel industry, this study provides an empirical investigation as the foundation for new studies of BOS.