Mungai, Purity W.2026-01-272025http://192.168.8.146:4000/handle/123456789/1058Revenue diversification is a critical component of financial sustainability and business resilience of four-star hotels in Kenya. Despite the importance of revenue diversification, the four-star hotels in Kenya exhibits dismal levels of diversification, with a significant dependence on traditional income streams such as accommodation and dining services. This study investigated investment strategies and revenue diversification of four-star hotels in Kenya. The specific objectives; market expansion strategy, leagile service strategy, collaboration strategy, and portfolio strategy influence revenue diversification. Anchored on the Ansoff Matrix, Service-Dominant Logic, Resource Based View, and Modern Portfolio Theory, the study adopted a descriptive research design. The target population comprised employees working in four-star hotels across Kenya, with a sample size of 335 selected through census. Data was collected using structured, closed-ended questionnaires administered through a drop-and-pick-later approach. Analysis involved both descriptive, exploratory factor analysis and inferential statistics, with findings presented using frequencies, percentages, pie charts, and frequency tables to enhance clarity and interpretation. The study findings show that four-star hotels in Kenya use different strategies for revenue diversification. Market expansion with a p = 0.000 and collaboration with a p = 0.006 gave mixed results. Leagile strategies with a p = 0.000 added modest flexibility and customer satisfaction. Portfolio strategies with a p = 0.000 brought stronger financial resilience and stability. The study concluded that four-star hotels in Kenya gain moderate benefits from different strategies. Market expansion and collaboration showed uneven results. Leagile strategies added modest flexibility and revenue gains. Portfolio strategies gave stronger stability and growth. The study recommended that four-star hotels in Kenya use structured market expansion with targeted marketing and partnerships. Leagile strategies should focus on service customization and flexibility. Collaboration needs clearer planning to achieve consistent revenue gains. Portfolio strategies should strengthen diversification and risk management for stability.enMarket Expansion StrategyLeagile Service StrategyCollaboration StrategyPortfolio StrategyRevenue DiversificationThesis