In Mumbai’s fast-paced hospitality industry, retaining skilled employees has become a growing challenge that directly affects service quality and overall hotel performance. This study investigates the critical relationship between staff retention methods and hotel operational effectiveness in Mumbai. While prior research has taken a larger picture of the service industry, this study focuses on specialized findings from Mumbai's hotel sector, where excessive staff turnover remains a major problem. The study used a descriptive research approach to collect data from 300 hotel workers working in several star categories, such as front desk, cleaning, food and beverage, and mid-level managerial responsibilities. Primary data was gathered using structured questionnaires, while secondary sources comprised scholarly publications and industry reports. Statistical approaches such as frequency analysis, descriptive statistics, normality testing, reliability testing, and hypothesis testing (including correlation and regression analysis) were used to evaluate the effect of retention strategies on service quality and performance outcomes. Key findings indicate a strong positive relationship between employee loyalty and hotel performance, with well-implemented retention practices contributing significantly to service consistency and guest satisfaction. The study also highlights a research gap, as few investigations have examined these factors specifically within Mumbai’s hospitality environment. The insights gained are valuable for hotel managers and HR professionals aiming to reduce turnover and enhance operational efficiency through targeted employee engagement strategies