Using the SERVQUAL model, this study analyses the survey data from 400 local and foreign guests of five-star hotels in Sri Lanka. The study discovered local visitors were less satisfied with the assurance aspect of hotel service, while foreign visitors were less satisfied with the empathy aspect. Overall, foreign visitors had higher expectations and perceptions of hotel service compared to locals. The study demonstrates variations between local and foreign visitors’ perception and satisfaction of hotel service quality. This sheds light on differing treatments expected by foreign visitors than their domestic counterparts which is useful in strategic decision-making and service improvement.