This study sought to assess the effect of turnaround strategies on performance of selected three-star hotels in Machakos County, Kenya. The specific objectives were to determine the impact of downsizing, divestiture, price bundling, and repositioning on the performance of three-star hotels in Machakos County, Kenya. The research was grounded on the balance scorecard theory, contingency theory, institutional theory, and resource-based view theory. The study adopted a descriptive research design. A total of 454 (Finance staff, HR staff, and Marketing staff, Guests) involved in operation of three-star hotels were targeted. A stratified random sampling technique was used to select a sample size of 135 respondents. Semi-structured questionnaires were utilized to gather primary data. A pilot study was done using 10 participants who were not involved in the final data gathering to check validity and reliability of study instrument. To explore the impact of the link between the independent and dependent variables, multiple regression analysis was performed. The study findings show that coefficient of correlation was 0.789, an indication that the study variables significantly influenced performance of three-star hotels. Coefficient of adjusted determination was 0.615 which translates to 61.5%. This indicates that variations in dependent variable was explained by the independent variables (downsizing strategy, divestiture strategy, price bundling and repositioning strategy). The findings also established that P-value was 0.001 which is less than 0.05 an indication that the study variables significantly influenced performance of three-star hotels. The study concludes that turnaround strategies significantly affect the performance of selected three-star hotels in Machakos County, Kenya. The hotel administrators should come up with reliable communication channels about the reasons behind the downsizing staff and offer support services for affected employees. The three-star hotels should conduct thorough due diligence before divesting any assets. This includes a comprehensive analysis of the financial implications, potential impact on market share, and considerations of the long-term strategic goals of the organization.