The study reviewed a literature on a role and importance of physical environment of a hotel service and determinant factors including a renovation. Also, the study showed how the service physical environment influenced satisfaction, quality of relationship, and customer loyalty. The Sampling method used a convenience sampling of non-probability sampling methods. samples were from domestic customers experience the hotel services for more than five years of the 1st deluxe hotel in seoul. The collected 200 questionnaires were used to analyze empirically. Regression analysis were used to verify hypotheses. Service physical environment influenced satisfaction, quality of relationship and customer loyalty significantly.