The purpose of this research paper is to provide an understanding for organizational factors effect on Customer Relationship Management (CRM) in the hotel business and then investigate CRM activities effect on loyalty among business travelers. An analysis of 163 questionnaires gathered from hotels in Sweden resulted in two main findings. (1) Organizational factors such as: size, strategy, and maturity of information system affect CRM activities where the development of a customer loyalty strategy affects CRM activities the most. (2) CRM activities as: bonus cards, service customization, free-gifts, and convenient check in/check outs affect loyalty where service customization affects loyalty the most. Hence, different organizational preferences and certain CRM activities are preferable as hotels strive to create loyalty among business travelers.