The purpose of this study is to propose an integrated model that examines the impact of service environment (servicescape) and service quality on customer satisfaction and behavioral intentions in hotels. Data was collected from guests of three upscale hotels in the region of Virginia, USA via self-administered survey. Anderson and Gerbing's two-step approach was used to assess the measurement and structural models. Structural equation modeling revealed that servicescape affects customer satisfaction, service quality and customer behavioral intentions positively; it was also found that, quality of services offered in luxury hotels leads to customer satisfaction and interestingly, results showed that service quality does not influence customers' behavioral intentions. Furthermore, Customer satisfaction was found to positively affect customers' behavioral intentions in hotels. On the other hand, the findings confirm that service quality, customer satisfaction had a mediating effect on the relationship between servicescape and behavioral intentions. The study findings will significantly help researchers and practitioners understand the complex relationships among service environment, service quality, customer satisfaction and behavioral intentions in the hotel industry.