The literature on service failure and recovery has tended to focus on single nation studies. As large numbers of service firms continue to seek opportunities in foreign markets, more effort needs to be directed at assessing cross-national similarities and differences so that appropriate strategies can be developed. This paper proposes a model of the effects of perceived justice and service failure severity on customer satisfaction, relationship quality and behavioral intention in the hotel sector of two countries: Korea and Japan. The results indicate that service failure severity, distributive justice and interactional justice have a significant influence on satisfaction in both of countries. The results also indicate distributive justice has stronger effect on customer satisfaction than interactional justice in both of countries. Finally, the findings of this study suggest various marketing implications for service recovery researchers and managers.