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The purpose of this paper is to present an alternate framework for evaluating strategic decisions of hospitality businesses in developing nations, particularly small- and medium-sized enterprises (SMEs). While strategy literature is extensive and diverse, it remains focused on developed nation contexts. By default, so is the case with hospitality strategy literature. This has created a paucity of research for hospitality businesses in developing nations; these businesses are largely SMEs in dynamic environments seldom similar to the ones in developed nations. Therefore, the proposed framework emphasizes the role of environment, and its relationship to strategic choice, resource allocation, and strategy evaluation. A set of research questions is also proposed.