Purpose – The paper provides insights into destination marketing and the conditions and outcome of competitor co-operation in a local, horizontal hotel network. The specific purpose is to uncover the mechanics of such a network and offer a theory together with recommendations for practice and future research. Design/methodology/approach – In contrast with manufactured goods, which are distributed to the market, destination marketing distributes customers to a service production site. This basic prerequisite has effects on marketing strategies and the networking of competitors, and so has the fact that the services are in part delivered in interaction with customers and between customers at a physical place. The paper is based on inductive case study research, and the observations and conclusions from the empirical case data are given precedence over extant theory. The case, the Hotel Group, is a hotel network in the town of Östersund, Sweden. The case is directed towards certain strategic business-to-business elements of destination marketing. Findings – The study shows that the Hotel Group has found a success formula. Among the results are that a drive for action, both planned and improvised, is more decisive for success than