PT Hotel Indonesia Natour (PT.HlN) as a corporate was built from the merger between PT Hotel Indonesia lnternational (PT.HII) and PT Natour in 2001. The decline of physical service quality (tangible) and the service level (intagible) will influence the competitive ability ofthe hotel business. A vertical and bureaucratic organization , the creating of cultural corporate devoid of market and competitive oriented enable decline of service quality to occur which also affect the functioning in overall.Paying close attention to the the problem above, this research is focused on how the process of PT HIN transformiation with the management policy and its implementation can create value to the consumer in the form of service quality, tangible as well as intagible. This research observes a model in many dimensions, such as: Renewal, Reframe, Restructure, and Revitalize (Gouillart & Kelly:1995). The transformation process will affect in the service quality given by a corporate. The indicators being used to measure the standard of a quality service are Tangible, Reliablity, Reponsiveness, Assurance, and Empathy (Zaithaml, Parasuraman & Berry:1990).Based on its purpose, this research is called Explanatory, since there are causal factors as the independent variable and effects arose as the dependent variable. Meanwhile, based on the technique of data collecting, this research can be classified as quantitative survey. The data tabulation is carried out with SEM method. SEM or Structural Equation Modeling is a method to observe the relation between the indicator and its variable (measurement model), as well as among other variables (structural model) using a software called LISREL 8.3.The research result shows a significant relation only in several dimensions of the transformation with the service quality; and there is a symmetrical positive relation (correlation) among those dimensions. The suggestion given as a result of mis research is the need for PT.HlN to perform the incremental and sustainable transformation process.