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The hospitality industry plays a key role in sustaining the livelihoods of approximately 1.3 million Kenyans living in Kenya s coastal county, Mombasa. Hotel businesses serve as a source of employment and income generation for the residents of Mombasa County. However, majority of the hotels have adopted the family business model, with the hotels being run by family members rather than professional managers. This approach limits the hotels performance and hence a threat to their sustainability. This study sought to establish the role of strategic planning on the performance of family owned hotel businesses in Mombasa.