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This study focus on the budget hotels in Lampung. The ratio of star hotels to non-star hotels in Lampung is 1:22, which is quite a surprising ratio. This research is to achieve a better understanding on how these non-star hotels survive in the harsh competition with the homogenous competitors. It is focused on the strategies throughout the different characteristics, business performance and operation management on the hotels. It is important for future development of Lampung in terms of business prospects and the local economy, as the budget hotels are responsible to accommodate mostly business travelers. Primary research was conducted using open-ended questionnaires, followed by interview and site observation. The 10 participants of the research were the official representatives of the budget hotels in Lampung. Qualitative method was being implemented because it was more ideal to investigate in depth for a small group of budget hotels. The overall data were being analyzed thoroughly to investigate the individual strategy. The results show that the budget hotels in Lampung have a lot of similarities in terms of characteristic, operation management and the business performance.