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@@ Taiwan’s economy and tourism industry has been growing quickly over recent years, and the hotel industry has grown in step. In order to stay competitive advantage, hotels have been focusing their competitive strategy on improving service quality because improved service quality leads to cultivate highly satisfied and loyal customers. This study introduced two variables—service recovery and perceived value —that combine with service quality to exert a joint impact on customer loyalty. Service recovery and perceived value are proposed as moderating variables; both are explored to verify the role in the relationship between service quality and customer loyalty. Previous studies have indicated that service recovery can directly effect on customer satisfaction, and correspondingly, little has done to explore service recovery as a moderating variable for the relationship between service quality and customer satisfaction. Furthermore, some researchers have been examined perceived value has the partial moderator effects to customer satisfaction and customer loyalty.