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The objective of this study is to examine the influence of physical environment on emotions, customer satisfaction and behavioural intentions in Chinese resort hotel industry. A convenient sampling technique was used to select the sample. A total of 500 questionnaires were distributed to customers of resort hotels in four different cities of China out of which 170 were returned (35% response rate). The result from the finding suggests that customers who have higher perceptions of the physical environment are more likely to have positive emotions, increasing customer satisfaction and behavioural intentions. Therefore, Chinese resort hotels need to pay attention to upgrading their facilities in order to elicit positive emotion and maintain their relationship with customer satisfaction.