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The purpose of this study is to test the relationships between physical environment, price perceptions, consumption emotions, and customer satisfaction in Chinese resort hotels. Five hundred self-administered questionnaires were distributed, and 340 were returned. Findings from this study reveal that the physical environment is a significant predictor of consumption emotions and price perceptions, which in turn affect customer satisfaction. Moreover, consumption emotions and price perceptions significantly mediate the relationship between physical environment and customer satisfaction. The management of resort hotels needs to consider that an attractive physical environment can be used for developing positive consumption emotions and price perceptions among customers, which may then increase their satisfaction.