This research was conducted to identify whether South African 3 star and above hotels are interested in forming alliances. The objective of this study was to group South African independent 3 star and above hotels on the alliance framework continuum, namely; cooperation, collaboration, coordination and coadunation; and to identify whether South African independent 3 star and above hotels are interested to progress from one simple form of alliance to the next complex, formal type of alliance. Hypotheses were proposed to determine the significance of the differences in preference of South African 3 star and above independent hotels. Thus, this study is descriptive in nature, to test the proposed hypotheses. An extensive investigation into the relevant literature was done. An empirical study was also conducted and the measuring instrument consisted of a selfadministered questionnaire. The population selected consisted of managers of these South African 3 star and above independent hotels. The major findings included: South African independent 3 star and above hotels seem to prefer niche personality and potential non-financial relationship, while they try to avoid economic and cultural integration with a partner firm and not interested in shared management control with the partner firm. Besides, four factors confirmed the alliance continuum developed by Bailey and Koney (2000), namely; cooperation, coordination, collaboration and coadunation. Friedman’s test indicated that there is significant difference among the different dimensions of alliance formation, namely; cooperation, collaboration, coordination and coadunation and that South African independent 3 star and above hotels are interested to form cooperation form of alliances mostly, followed by coordination form of alliances. South African independent 3 star and above hotels are neutral on whether to form collaboration type of alliances and they are not interested to involve in the coadunation form of alliances. Chi-square test indicated that there is no significant difference on the opinion of the respondents on whether the hotel they work for needs to progress from simpler form of alliances into more formal and complex format of alliances. However, those who preferred that their hotel has to progress from simpler form of alliance are higher in number than those who did not prefer. It was, inter alia, recommended that as South African 3 star and above hotels choose lower form of alliance, value chains seem the most applicable form of alliance. Hotels could share a name, reservation information and some basic IT facilities (point of sale IT reservation equipment and back office IT equipments). Finally, the study concludes by recommending that South African independent 3 star and above hotels should take alliances as an option for growth and justification of expenditures and decide the level of alliance continuum they want to engage in. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted