This study focuses on star-rated chain hotels in China as a research example to establish a critical linkage between corporate dynamic competition and consumer-side responses. It examines the impact of multimarket contact on consumer satisfaction, along with the moderating effects of strategic distances, specifically capacity, quality, and location distances. The primary findings reveal that: first, multimarket contact between corporates reduces consumer satisfaction; second, the congruence of capacity distance attenuates this negative relationship; third, differentiation in quality and location distances mitigates the adverse association between multimarket contact and consumer satisfaction; fourth, the dispersion of capacity distance, quality distance, and location distance collectively weakens the negative correlation between multimarket contact and consumer satisfaction. These findings contribute to strategic management literature by elucidating the consumer-facing implications of competitive dynamics in service industries.