This study aims to formulate a competitive business development strategy for Beliga Hotel in the Sula Islands, an emerging remote-island tourism destination characterized by limited market access, dependence on government-related demand, and increasing hospitality competition. This qualitative case study used semi-structured interviews with key informants, including the hotel owner, managers, and operational employees, to cover the existing business model, customer segments, value propositions, marketing channels, operations, partnerships, and future development needs. Data were also obtained through observation and document analysis, enabling triangulation across interview, observational, and documentary evidence. The Business Model Canvas (BMC) mapped and evaluated nine interconnected business elements, while SWOT analysis assessed internal strengths and weaknesses and external opportunities and threats. Findings show that Beliga Hotel benefits from a strategic location, adequate facilities, and an established customer base, but remains constrained by limited digital marketing, conventional distribution channels, dependence on government customers, and gaps in employee competencies. The resulting diversification strategy emphasizes market expansion, digital transformation, service innovation, strategic partnerships, revenue diversification, and human resource development. The study's original contribution is contextualizing BMC-SWOT integration in a remote-island hospitality setting, linking business-model transformation to accessibility constraints, institutional market dependence, and emerging tourism opportunities.