This study focus on the budget hotels in Lampung. The ratio of star hotels to non-star hotels in Lampung is 1:22, which is quite a surprising ratio. This research is to achieve a better understanding on how these non-star hotels survive in the harsh competition with the homogenous competitors. It is focused on the strategies throughout the different characteristics, business performance and operation management on the hotels. It is important for future development of Lampung in terms of business prospects and the local economy, as the budget hotels are responsible to accommodate mostly...