By applying the framework of strategic group to Taiwan's international tourist hotel industry, this paper examines whether strategic groups exist in this industry and the relationship between their strategic behavior, mobility barriers, and performance. Factor analysis, two-stage cluster analysis, discriminant analysis, one- way ANOVA/MANOVA, and Scheffe multiple comparison are used to proceed empirical analysis. Findings of this paper indicate that: According to the similarity of resource-owned and strategy-used, Taiwan's international tourist hotel industry can be divided into four strategic groups. There are significant differences among strategic groups in their sources and level of mobility barriers. Various strategic groups are significantly different in their operation performance. Market segmentation and pricing strategy are the most significant and important factors affecting performance.