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A Guide to 21 of the Most Popular Types of Hotels

From cozy roadside inns with basic cable and morning coffee to massive all-inclusive vacation resorts in the world’s most luxurious destinations , there are dozens upon dozens of different types of hotels located throughout the world.

While some of these properties have many similarities — for example, an all-inclusive resort may also be classified as an extended stay property — there are also some that couldn't be more different (i.e. casino hotels vs. hostels).

Confused? Don't be. In this post, we break down 21 of the most popular types of hotels and explore the similarities and differences of each. Whether you’re a traveler looking for a low-priced economy room or an aspiring hotelier looking to take a deeper dive into your options, the wide world of hotels has something for everyone.

21 of the most popular types of hotels

1. chain hotels.

The most common hotel type on this list,  chain hotels make up  tens of thousands of properties located throughout the world. Chain hotels typically fall under a group of hotels operated by a company or owner. Hilton, for example, has a portfolio made up of over a dozen "separate" brands , including DoubleTree, Embassy Suites, Hampton, Homewood Suites, and Home2 Suites. Another example is Marriott , which boasts brands such as The Ritz-Carlton, Sheraton, Westin, Gaylord, Courtyard, and SpringHill Suites. 

Franchise ownership is common at these properties, which are also known for their frequent renovations and even "secret menus" at some hotel restaurants and bars.

Hoteliers at these properties should know travelers are on the lookout for hidden fees like resort fees and explore the perks of hotel loyalty programs. For example, Marriott International offers a VIP program called Marriott Bonvoy that includes various tiers with rewards like free nights, room upgrades, and even airline partnerships. Some chain hotels offer unadvertised discounts to specific groups when booking directly with the hotel or have fewer fees than third-party booking sites.

The term “motel” evolved in the 1920s , long after the term hotel, and is a blend of the words “motor” and “hotel.” Motels started cropping up to cater to travelers as an affordable, accessible place to stop overnight during long trips. They're typically located along highways and other major roadways, and offer minimal amenities, if any.

Motels usually have a different layout than standard hotels as well, with rooms being accessible from the exterior. Additionally, motels are typically one to two stories high, while hotels can be much larger. Motel 6, Super 8, and Econo Lodge are some of the most well-known motel chains, though motels can be independently operated also.

For hoteliers considering the motel business, understanding the preferences and expectations of road-trip travelers is essential. Offering personalized service such as valet, historical tours for older properties, and even complimentary fluff and fold can set motels apart in this niche market. 

A resort is usually a destination that attempts to provide travelers with everything they need in one location: Accommodations, dining, drinks, shopping, and entertainment. Often located in popular vacation destinations, some resorts are all-inclusive , allowing travelers to pay one price for unlimited service. The Hyatt Ziva Cancun , for example, is an all-inclusive resort catering to Cancun vacationers, providing them with lavish services and an uninterrupted view of the Caribbean.

While some resorts are budget-friendly, there are also luxury options available. Luxury resorts are the epitome of grandeur and indulgence. These establishments offer guests lavish accommodations, world-class amenities, and exceptional service. Often located in exotic destinations, luxury resorts provide a complete escape from the ordinary. Expect stunning oceanfront villas, private butlers, gourmet dining, and top-tier spas. These resorts are perfect for honeymooners, celebrities, and anyone seeking an unforgettable, pampering experience.

An inn is usually much smaller than a standard or chain hotel. Often individually or family-owned, inns tend to offer a cozy, homey feel for their guests. Typically offering fewer in-room amenities than a larger hotel chain, you may find in-room coffee, Wi-Fi, or small breakfast options available at an inn.

Many inns offer unique styles or decorations from room to room, providing guests with a unique experience. Some inns, like the Ponte Winery and Vineyard Inn in Temecula, California, have a vineyard on-property and specialize in wedding services as well. 

For innkeepers, it's important to understand that maintaining the historical or unique character of the property while providing modern comforts is both a challenge and a major selling point. To stand out, inns can create a strong sense of community by hosting local events, art displays, or culinary experiences, attracting both guests and locals.

5. All-suites

Hotels in which all of the guest rooms are suites are commonly referred to as all-suite hotels . These hotels typically have “suites” in the name, making them easier for travelers to identify.

All-suite properties usually offer each guest a bedroom, separate living area, and a kitchen area or cooking accessories. Many large hotel companies have an all-suites brand or two under their umbrella, such as Comfort Suites by Choice Hotels, Embassy Suites by Hilton, or Staybridge Suites by IHG.

For hoteliers, it's essential to recognize that all-suites hotels often cater to guests who desire more space, convenience, or a longer stay. This makes it crucial to focus on room layout, functionality, and maintenance. Plus, all-suites properties can attract business travelers seeking a home-like environment for work trips. Interior design that brings in elements of both luxury and coziness are essential for this audience. 

6. Conference/convention center hotels

Conference or convention center hotels  are characterized by their combination of guest rooms and meeting space. These properties are designed to host large events and provide a wide variety of event options to accommodate different setups, entertainment opportunities, A/V equipment, and breakout needs.

These types of hotels specialize in accommodating everything needed at a conference: The event location, overnight rooms, food and beverage services, and transportation. They typically hold thousands of feet of flexible event space and are frequently found in larger cities or popular business destinations.

7. Extended stay hotels

While many lodging options cater to overnight or short-term stays, some properties specialize in accommodating travelers looking for an extended stay. This type of hotel is called an  extended stay hotel , and it's popular among  business travelers and other individuals staying in one location for multiple days, weeks, or longer.

Most extended stay properties provide guests additional amenities to make it feel more like home, such as a fully-equipped kitchen.  Extended Stay America offers studio rooms at many locations, as well as daily, weekly, and nightly rates to accommodate a variety of budgets.

Many extended stay hotels have partnerships with local restaurants, gyms, and businesses, offering discounts and deals to guests for even more savings. However, they may lack the daily housekeeping services found in traditional hotels, which can be a consideration for those who prefer daily cleaning.

8. Boutique hotels

Boutique hotels  are typically much smaller than the average chain hotel. Usually made up of 100 guest rooms or fewer, you can expect to find boutique hotels in exciting locations or near popular destinations, such as an urban city center or hip shopping district. Boutique hotels can be independently operated, or part of a chain , but they tend to cater to a specific audience, offer a unique style, and provide thoughtful services.

“There are an infinite number of recipes, but the key ingredients I see in a boutique hotel are individuality and a great emotional impact," Shlomo Gabbai — the director of the annual Boutique Hotel Awards, which recognize the best-of-the-best in boutique hotels — told Business Insider .

9. Bunkhouses

Basic accommodations sporting bunk beds, or a barracks-like building style, are commonly referred to as bunkhouses . Originally, bunkhouses were used to house field-hands , ranchers, working cowboys, and other migratory workers. However, bunkhouses have evolved over the years, and now, many hotels offer modern versions used to accommodate large groups. The Atticus Hotel in Mcminnville, Oregon, for example, boasts a luxury bunkhouse that travelers can enjoy while soaking in all Oregon has to offer.

"With a wall of luxury bunks, cubbies for six and a bathroom artfully designed for a crowd, our Luxury Bunkhouse is equipped for late nights of laughter with good friends," reads the hotel's website .

Hoteliers take note: bunkhouses are often located near outdoor recreational areas. So offering camping or outdoor sport equipment rentals or even guided nature tours such as snowshoeing or stargazing can attract more visitors. 

10. Bed and breakfasts

Typically smaller, privately-owned properties, the bed and breakfast is a favorite accommodation among travelers looking to experience the intricacies of a destination. Known for providing a bed, as well as food services (most commonly breakfast), many “BnBs” are operated by live-in innkeepers. The owners often live somewhere on-property or nearby, operate the property themselves, and may even prepare meals for travelers.

Highlighting the unique character of the property—whether it's historical, architectural, or themed—can help differentiate the B&B from competitors. Also, participating in B&B associations and online directories can boost visibility and credibility. It's crucial for hoteliers to manage their time effectively, as running a B&B can be demanding due to the hands-on nature of the business.

11. Eco hotels

An eco hotel — also commonly referred to as a green hotel  or sustainable hotel — is a type of hotel that puts a lot of focus on operating in an environmentally-friendly and sustainable manner. Eco-friendly hotels promote green initiatives, such as utilizing solar power and reducing waste, and make it a priority to reduce their environmental impact.

For hoteliers interested in operating eco hotels, it's essential to understand that sustainability can be both a selling point and a cost-saving measure. While eco-friendly technologies may have an upfront cost, they can lead to long-term savings in energy and water expenses. Adding local and seasonal meal options, as well as vegetarian and vegan ones, can be an easy-to-implement sustainable measure. Collaboration with local communities and support for environmental and wildlife conservation projects can also create a positive impact beyond the hotel's operations.

12. Casino hotels

Casino hotels are located in — you guessed it — casinos! They typically offer overnight guest rooms, access to an in-house casino, and often include a variety of restaurants, bars, activities, and shopping options for guests. 

13. Pop-up hotels

Stylish and trendy, pop-up hotels are temporary lodging options that “pop up” for a short period of time. Pop-up hotels are appealing to travelers seeking new experiences, or those who want to enjoy “untouched” locations.

The exclusivity of these types of hotels makes them appealing to many trend-setters and social media influencers. Just take  Taco Bell’s wildly successful pop-up hotel  as an example.

14. Pet-friendly hotels

Pet-friendly properties allow guests to bring their pets with them when they travel. Some of these properties charge a pet fee, while others allow complimentary pet stays. Weight limits, breed restrictions, or the number of animals a traveler may check-in with can vary from property to property. Websites like petswelcome.com  allow travelers to search for pet-friendly properties.

15. Roadhouses

Roadhouse  is a term that was commonly used to refer to motels or small lodging options along the highway. It was also a popular term in Britain used to describe roadside pubs that included lodging options . While the term can still be found on advertising at some hotels and venues, it’s more commonly associated with restaurants now.

16. Gastro hotels

Perfect for foodies, gastro hotels are focused on providing travelers overnight accomodations coupled with fantastic food. Gastro hotels are usually on the smaller side with fewer than 50 rooms . For example, The Cookbook Gastro Boutique Hotel & Spa has only 17 rooms and takes special care creating culinary delights for guests who choose to book with them.

17. Micro hotels

Micro hotels are exactly what they sound like: Small hotels. Designed for people who need a place to sleep and not much else, the presence of micro hotels is growing . Hilton recently entered the micro hotel space with the creation of its Motto brand , which features city-centric properties that supply "travel-sized rooms for all-sized trips." 

18. Transit hotels

Transit hotels , also called airport hotels, appeal to travelers with a flight to catch. Transit hotels are  located inside of an airport , typically close to a terminal and within a security checkpoint. Passengers facing long flights, or international flights, are able to check in and get some rest at transit hotels in between trips or during lengthy layovers.

Some transit hotels offer short and flexible check-in/check-out times which means guests can stay for as little as a few hours to fit in a quick nap before a connecting flight. Additionally, these hotels are often equipped with soundproofing to reduce noise from nearby transportation terminals, ensuring a peaceful rest. Amenities like luggage storage and proximity to transportation terminals are also key selling points for transit hotels.

19. Heritage hotels

Travelers looking to soak up local culture or explore the history of an area may choose to stay at a heritage hotel . These types of hotels are typically located in historically-significant areas or have a direct connection to major events that shaped the local culture. Due to the age of many of the original structures, some heritage hotels are remodeled versions of old castles or temples.

20. Hostels

A term you may associate with backpacking across Europe, or similar travel styles, hostels are lodging options that appeal to travelers on a budget. Most hostels provide dorm-style sleeping arrangements and target a specific type of traveler, such as students and short-term younger travelers.

Many organize events, tours, and group activities to help guests connect and make new friends during their travels. This can be an ideal situation for solo travelers or remote workers interested in moving to a new area. 

21. Unique concept hotels 

An exciting, fun, and unique type of hotel, concept hotels allow travelers to fully immerse themselves in one-of-a-kind experiences. Concept hotels include ice hotels , underwater hotels , and just about any other unique property you can think of.

FAQs about the different types of hotels

How many different types of hotels are there.

There isn't definitive number of hotel types to choose from. As the industry evolves to meet the needs of modern travelers, new hotel styles are popping up all the time. We’ve outlined 21 of the most common in this post, but there are still more varieties out there, especially in niche markets of the hospitality industry .

What do stars mean for different types of hotels?

The five-star rating system is commonly used by independent organizations to determine the quality of a hotel . The rating system measures different criteria including the condition and quality of the hotel and its guest facilities.

To put it simply, a one-star hotel is typically an economy-priced hotel with no extravagant amenities or additional frills. A luxury hotel, however, may be rated five stars if the property is flawless, provides premium dining services, and offers personalized services to guests. Some hotels these days are even receiving seven stars!

How are hotels categorized?

Hotels can be categorized in a variety of ways, such as by size, location, services, star rating, and amenities. Hotels are most commonly categorized by the level of service (full or limited) and property type (full-service resort, limited-service hotel, and so on).

What do different types of hotels cost?

The price of a night’s stay at a hotel can range widely based on various factors such as included services, the location of the property, the time of year, and any discounts you may qualify for. For example, while a motel stay may run you less than $100 a night , a luxury five-star hotel stay can cost an average of over $850 per night .

Why are there different types of hotels?

Different hotel types exist to accommodate the varying needs and preferences of travelers. A motel is designed to appeal to travelers on the highway in need of an affordable place to sleep for the night, while an all-inclusive resort appeals to vacationers in a specific destination.

There are so many different types of hotels to choose from!

Up next: Have you ever wondered why — and how — hotels smell so good? Our hotel scent guide covers everything you need to know. 

Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

Maria Waida

Maria Waida is a freelance B2B SaaS Copywriter specializing in blog articles about events and hospitality. She's also a big Dungeons & Dragons nerd. Connect with her on LinkedIn!

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The different types of hotels and their classification

Eva Lacalle

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There are many different classifications of hotels that can be put in place as a framework to better guide guests to understanding if the hotel is right for them based on their budget, what they are looking for, size and location. Classification also helps hotels design a better brand strategy because by defining your offer, you will better appeal to a certain target audience.

With this in mind, let's take a look at the different ways hotels are classified, including, but not limited to: target, size, star rating, and ownership, i.e. whether it’s a chain or independently owned hotel.

Table of contents

Classification of hotels by their type

While there are many ways to classify a hotel, let’s look at some of the most common categories.

Star rating

The star system is used as a general barometer for guests to better identify the level of service offered at the hotel . A five-star grand luxe establishment is usually considered luxury, providing top-notch restaurants with celebrity chefs and elaborate breakfast buffets. They usually cater to an upscale target audience who looks for extra services, such as valet and room service, as well as top-of-the-line amenities.

On the other hand, three-to-four-star hotels are more mid-range, appealing to a wide target audience, and with no service level guarantees. Service is usually standard, offering the minimum, but not going that extra mile of a five-star. One-to-two-star hotels are designed to meet guests’ most basic needs such as a clean, reasonable place to sleep, appealing to the most price-sensitive travelers.

Discover the five types of hotel guests and how to appeal to them.

Ownership is another important way to classify hotels, because the services offered by an independent hotel are by no means comparable to those offered at a chain. A chain promises standardized services, appealing to those looking for a standard hotel, which will be mostly the same no matter where you go in the world, providing reliability, trust and inspiring loyalty.

An independently-owned hotel, on the contrary, seeks to offer a more personalized and friendly approach to service, going above and beyond to differentiate themselves from the competition thanks to their amenities and personalized approach to hospitality. Because they are usually one-of-a-kind facilities, this means they don't have to appease any larger corporate owners, and they can adapt their service to meet the demand and guest needs.

While not always related, size can oftentimes be related to whether it is a chain or independent hotel, where the latter tends to be 100 rooms or fewer and the former, usually, will be more than 100 rooms and as many as 700-room-facilities. Size is an important distinguishing factor because a larger facility cannot compete with the quality of service of a small boutique hotel.

When we talk about target, we refer to the classification of hotels based on the target audience the hotel is designed for. For example, it could be a resort, a boutique hotel, business hotel, apart-hotel, an eco-hotel, a conference hotel, an airport hotel and so many more. When determining your offer, you want to make sure it appeals to the target group you have in mind. A great way to do this is by defining your hotel's competitive set.

Boutique hotel

A boutique hotel is designed with a niche target group in mind that’s looking for personalized service, special amenities, and a one-of-a-kind offer that is not replicable elsewhere. That is to say, if they're in Tokyo they would want to find a Japanese robe in their room with geisha sandals, and if they're in Hawaii, they would want to find a lei in their room as a welcome gift. Personalization is the key to captivating and keeping this target group.

Resort hotels tend to be large establishments where you don't have to leave the grounds to get what you want. You will usually find them on an island or in beautiful locations where other resorts are found, removed from the main town, or even isolated in the mountains. It could be a ski resort where you can take ski lessons from expert ski instructors, eat all your meals on site, and you might even find a small grocery store.

Some resorts have various restaurants and recreational facilities like golf, tennis, different swimming pools, a spa, nail salon, and more. The idea is to give the guest everything they want, so they don't have to leave, and they spend all their money within the resort. It's comparable to a static cruise ship.

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Apart-hotel

An apart-hotel is as it sounds: an apartment and hotel all in one. Often hotels will offer a few apartments within their facilities designed for longer-stay guests, meaning rooms are more spacious or there are even several bedrooms, and they feature a kitchen, laundry machine, and all the comforts of an apartment, with the service of a hotel.

Business and conference hotels

Business hotels and conference hotels are grouped together because they provide similar features. They are usually geared towards business travelers or event organizers who want to be located close to convention centers, downtown or the business area of metropolitan cities. Usually there is reliable Wi-Fi, meeting rooms, and larger event rooms.

Bed and breakfasts

Bed and breakfasts started out as small guest houses of maximum five or six rooms that offer a relaxed and personal experience with the owner actually living onsite. It usually includes a home-cooked breakfast and a very personable experience. The meaning of this classification has changed with the rise of Airbnb, and often this type of hotel will be easily interchangeable with the term Airbnb.

Airport hotels

Airport hotels are designed for guests or business travelers that want to be close to the airport because of an early take-off or a late arrival. They are also commonly booked by flight attendants and pilots who need a comfortable and convenient place to stay close to the airport. Usually one of the perks of these kinds of establishments is that they provide free pick-up and drop-off at the airport.

In this article we've looked at the various classification of hotels, which includes the target group the hotel is designed with in mind, the star-rating, who owns the hotel and its size. By understanding these classifications, it's easier to design your offer around the classification so that you are sure to attract the right target audience. In order to do so, you must have the guest journey in mind, carefully taking care of the details along every step of the way.

Eva has over a decade of international experience in marketing, communication, events and digital marketing. When she's not at work, she's probably surfing, dancing, or exploring the world.

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Hotel Management A-Z Information

25+ Different Types of Hotels and their Categories

• By Dipayan Mondal
• Updated On September 20, 2023

What is a Hotel?

A hotel provides accommodation, along with services like food and beverages , and facilities like recreation, conferences, training arrangements, and the organization of official and private parties. Each hotel has unique features associated with it.

The features may be its location, the number of guest rooms, special services such as concierge, travel assistance, and valet parking, or facilities such as specialty restaurants , bars , business meeting venues, a swimming pool, and so on.

The star classification system is among the most widely accepted ratings for hotels worldwide. Ratings of hotels in different countries are done by government or quasi-government sources, independent rating agencies, or sometimes the hotel operators themselves. The Indian hotel industry follows the star rating system, which indicates the number and standard of facilities offered by the hotel.

A hotel sells a combination of accommodation, food, drinks, and other services and facilities to its guests. The main accommodation product in the room is among the principal sources of revenue for the hotel. Other facilities and benefits, such as ambiance, decor, in-room amenities, and security, are add-ons that play a significant role in the pricing of the services.

In order to suit the profiles and pockets of various kinds of guests, hotels offer different types of rooms that cater to their specific needs. The rooms may be categorized on the basis of their size, layout, view, interior decoration, and services offered.

Hospitality seems to be a glamorous industry, but now many know that a tremendous amount of hard work goes behind the scenes and behind the glitter that meets the eye. The origin and development of the hospitality industry are direct outcomes of travel and tourism .

There are many reasons for which a person may travel: business, pleasure, further studies, medical treatment, pilgrimage, or any other reason. When a person travels for a few or more days, he may carry his clothes with him, but it’s not possible for him to carry his food and home.

Thus, two of his three basic needs—food and shelter—are not met when he is traveling. This is where the hospitality industry steps in. Before the wheel was invented, people undertook journeys on animals such as horses, camels, and elephants.

However, there was a limit to the distance they avoided traveling due to their fear of wild animals and bandits, and also because of animal fatigue. Thus, for the night’s halt, they looked for a place that could provide them with water, fuel to cook food, and, above all, security from wild animals and bandits.

Primitive lodging houses, or inns, originated essentially to cater to the needs of travelers. The earliest inns were generally run by families or husband-wife teams who provided large halls for travelers to make their own beds and sleep on the floor. They also provided modest, wholesome food and drinks like wine, port, Ale, etc and stable facilities for the animals.

Entertainment and recreation were also provided on a modest scale. All this, of course, came at a price. These inns or lodging properties were housed in the private homes of local people.

They made a living by providing accommodations to travelers. These inns were not as clean and tidy as we see them today. They were also devoid of the frills and facilities seen in modern-day hospitality establishments. The travelers had to make their own beds and cook for themselves.

What are the Types of Hotels?

The diversity in services and facilities provided by each hotel makes it quite difficult to have any single basis for the classification of hotels, and if we categorize the hotels on different criteria, then there will be some hotels that will fall into more than one group.

1. Star Classification of Hotels

A) one-star hotels.

These properties are generally small and independently owned, with a family atmosphere. There may be a limited range of facilities, and the meals may be fairly simple.

For example,  Lunch may not be served, and some bedrooms may not have an en suite bath or shower. However, maintenance, cleanliness, and comfort would be of an acceptable standard.

b) Two-Star Hotels

In this two-star category, hotels will typically be small to medium-sized and offer more extensive facilities than one-star hotels. Guests can expect comfortable, well-equipped overnight accommodations, usually with a suite bath or shower.

Reception and other staff will aim for a more professional presentation than at the one-star level and will offer a wider range of straightforward services, including food and beverages.

c) Three-Star Hotels

At this three-star level, hotels are usually of a size to support higher staffing levels as well as a significantly higher quality and range of facilities than at the lower-star classification. Reception and other public areas will be more spacious, and the restaurant will normally also cater to non-residents.

All bedrooms will have an en suite bath and shower and will offer a good standard of comfort and equipment, such as a direct dial telephone and toiletries in the bathroom. Besides room service, some provisions for business travelers can be expected.

d) Four-Star Hotels

Expectations at this kind of four-star hotel level include a degree of luxury as well as quality in the furnishings, decor, and equipment in every area of the hotel. Bedrooms will also usually offer more space than at the lower star level. The restaurant will demonstrate a serious approach to its cuisine.

e) Five-Star Hotels

Five-star hotels offer spacious and luxurious accommodations throughout the hotel, matching the best international standards. The service should be formal, well-supervised, and flawless in its attention to guests’ needs without being intrusive.

The restaurant will demonstrate a high level of technical skills. The staff will be knowledgeable, helpful, and well-versed in all aspects of customer care, combining efficiency with courtesy.

f) Heritage Hotels

The heritage hotel is a recent addition to the hotel industry in the country. Heritage hotels are properties set in small forts, palaces, or Havelis, the Mansions of erstwhile royal and aristocratic families. They have added a new dimension to cultural tourism.

In a heritage hotel, a visitor is offered rooms that have their own history, is served traditional cuisine toned down to the requirements of international palates, is entertained by folk artists, can participate in activities that allow a glimpse into the heritage of the region, and can bask in an atmosphere that lives and breathes the past.

Examples: The Taj Lake Palace in Udaipur and The Oberoi Cecil in Shimla are some examples of heritage hotels.

2. Hotel Classifications on the Basis of Size

The number of guest rooms in a hotel is a criterion used to classify hotels. Hotels can be grouped into the following categories on the basis of the number of rooms or the size of the hotel:

a) Small Hotel

In India, hotels with twenty-five rooms or fewer are classified as small hotels. For example, Hotel Alka, New Delhi, and The Oberoi Vanyavilas, Ranthambore .

However, in the developed countries of Europe and America, hotels with fewer than 100 rooms are considered small. These hotels provide clean and comfortable accommodations but may not provide upmarket facilities, such as a swimming pool, restaurant, bar, etc.

b) Downtown Hotel

A downtown hotel is located in the center of the city or within a short distance from the business center, shopping areas, theatres, public offices, etc. The center of the city may not necessarily be the geographical center, but it refers to an area that is considered to be the commercial hub of the city.

The room rates in these hotels may be higher than similar hotels in other areas, so as to cover the huge investment made in the land. They are generally preferred by business clients, as they find it convenient to stay close to the place of their business activities.

c) Sub-Urban Hotel

As the land costs more in the city center and the space is limited, some entrepreneurs build their hotels near the outskirts of the city. Providing similar facilities as the downtown hotels, these hotels are set in sub-urban areas and have the advantage of quieter surroundings.

Such hotels are ideal for people who prefer to stay away from the hustle and bustle of a city. The duration of the stay of guests in these hotels may be longer than at a hotel located in the city.

d) Resort Hotel

Hotels that are located at tourist destinations such as hill stations, sea beaches, and the countryside are referred to as resort hotels. These hotels have a very calm and natural ambiance.

The room rates in these hotels may range from moderate to high, depending on the additional services offered. The occupancy in resorts is normally higher during vacation time and weekends, when guests want to take a break from their weekly routine.

Examples: Taj Fort Aguda Beach Resort, Goa, and Wildflower Hall in the Himalayas, Shimla, are examples of resort hotels.

e) Airport Hotels

Airport hotels are situated in the vicinity of airports and other ports of entry. Offering all the services of a commercial hotel, these hotels are generally patronized by passengers who need a stopover en route to their journey.

The word motel is formed by merging the two words’ motor and hotel. They are located primarily on highways and provide modest lodging to highway travelers. This phenomenon is quite common in American and European countries.

Travelers who were traveling in their own vehicles needed neat and clean accommodations for the night. They also required garages and refueling facilities for their vehicles. In the year 1950, the concept of motels came into existence to meet the requirements of such highway travelers.

Floatels are types of lodging properties that float on the surface of the water. This category consists of all lodging properties that are built on top of rafts or semi-submersible platforms and includes cruise liners and houseboats. Some of them provide luxurious accommodations along with food and beverage facilities for guests.

Examples: The houseboats of Dal Lake in Srinagar, Jammu and Kashmir, and Kerala are some examples of floatel in India.

3. Hotel Categorization on the Basis of Clientele

A) business or commercial hotels.

Designed to cater to the business traveler, commercial hotels are generally situated in the city center. These hotels provide high-standard rooms and amenities, along with high-speed Internet connectivity, business centers, and conference halls.

They also provide in-house secretarial services as well as facilities such as letter drafting, typing, faxing, and photocopying of documents for the convenience of their guests.

The duration of guests stays is generally very short at these hotels. The occupancy level is higher during the weekdays and slightly lower during the weekends. These hotels are also known as downtown hotels.

Example: The Park and Hotel Intercontinental in New Delhi are examples of business or commercial hotels.

b) Transient Hotels

Transient hotels cater to the needs of people who are on the move and need a stopover en route to their journey. Located in close proximity to ports of entry, such as seaports, airports, and major railway stations, these hotels are normally patronized by transient travelers.

They have round-a-clock operational room service and a coffee shop and offer all the facilities of a commercial hotel. The occupancy rate is usually very high, something more than 100 percent, as rooms can be sold more than once on a given day.

Example: The  Hotel Centaur and Radisson in New Delhi are examples of transient hotels in India. Airport hotels fall fully into this category.

c) Suite Hotel

Suite hotels provide the highest level of personalized service to guests. The guest rooms generally comprise a living area, a compact kitchenette complete with a refrigerator and a microwave, a bedroom attached to a bathroom, and sometimes even a dance floor. These hotels are patronized by affluent people and tourists who are fond of luxury.

Examples: the Burj Al Arab in Dubai and Intercontinental The Lalit Goa Resort is an example of a suite hotel.

d) Residential Hotel

As the name suggests, Residential hotels provide accommodation for a longer duration. These kinds of hotels are generally patronized by people who are on a temporary official deputation to a city where they do not have their own residential accommodations.

The guest may choose to contract for some or all of the services provided by the apartment hotel. The hotel signs a lease with the guest, and the rent is paid either monthly or quarterly.

e) Bed and Breakfast Hotels

A European concept, bed and breakfast hotels are lodging establishments, generally operated in large family residences.

f) Casino Hotel

Casino hotels provide gambling facilities, such as the Luxor Hotel and Casino in Las Vegas. These hotels attract clients by promoting gambling and arranging extravagant floor shows; some may also provide charter flight services to their clients.

Example: The casinos in Las Vegas, USA, are among the most famous casinos in the world.

g) Conference Centers

The word conference means a meeting, sometimes lasting for several days, in which people with a common interest participate in discussions or listen to lectures to obtain information. The services provided are of the highest standard. Normally, conferences are charged as packages, which include accommodation and meeting facilities.

Example: Hotel Ashok, New Delhi, is an example of a conference center.

h) Convention Hotels

A Convention is defined as a formal assembly or meeting of members, representatives, or delegates of a group for general agreement on or acceptance of certain practices or attitudes. This type of meeting involves a large number of participants.

The hotels catering to the needs of this segment are known as convention hotels. A convention hotel has a greater number of rooms to host a large number of attendees as compared to conference centers.

4. Hotel Categorization on the Basis of Guest Stay Duration

A) commercial hotels.

The duration of guests stays in these hotels is short, ranging from a few days to a week.

b) Transient Hotel

Mostly occupied by travelers as stopovers on their journey, the duration of stay at transient hotels is very short—a day or even less.

c) Semi-Residential Hotels

These hotels are generally patronized by people who are staying at a location while in transit to another place. The duration of the stay may range from a few weeks to a few months. They incorporate the features of both transient and residential hotels.

d) Residential or Apartment Hotel

Residential hotels provide accommodation for a long duration and are patronized by people who stay for a long time. The duration of the stay may range from a few months to a few years.

e) Extended Stay Hotel

In today’s age of downsizing, outsourcing, and mobility, business executives are often away from their hometowns for extended periods of time and require more than a hotel room.

These hotels are for those guests who wish to stay for a long period and cater to their long-term needs with special services, amenities, and facilities, such as full-fledged kitchens with dishes and kitchenware, a refrigerator, a separate area to wash clothes, housekeeping services, grocery shopping services, and recreational facilities. The room rates of these hotels are determined by the length of stay.

5. Classification of Hotels Based on Level of Service

A) upmarket luxury, or world-class service hotels.

Targeting the affluent segment of society, hotels in the upmarket category offer world-class products with personalized services of the highest standard. The emphasis is on excellence and class.

The design and interior decoration of the hotels provide upscale restaurants and lounges, exquisite décor, concierge service, opulent rooms, and abundant amenities. These hotels also offer the facilities of health clubs with trainers and dieticians.

These hotels are generally patronized by affluent people who care for quality and include business executives, celebrities, and high-ranking political figures.

Examples: The Oberoi Udaivilas, Udaipur, and the ITC Hotel Grand Maratha Sheraton and Towers, Mumbai, are a few of the luxury hotels in India.

b) Mid-Market or Mid-Range Service Hotels

These hotels offer modest services without the frills and personalized attention of luxury hotels and appeal to the largest segment of travelers. They may offer services such as room service, round-the-clock coffee shops, airport/railway station pick-up and drop-off facilities, and a multi-cuisine restaurant with a bar.

A typical hotel offering mid-range service would be medium-sized, having roughly 150 to 300 rooms. The room rent is much lower than in upmarket hotels.

c) Budget or Economy Hotel

Budget or economy hotels are mainly focused on meeting the most basic needs of guests by providing them with clean, comfortable, and inexpensive rooms.

These hotels have clean and comfortable guest rooms, a coffee shop, a multi-cuisine restaurant, an in-room telephone, and channeled music and movies. They may also have a swimming pool, a shopping arcade, and a beauty parlor.

What is The History of hotels?

The term “ Hotel ” was used for the first time by the fifth Duke of Devonshire to name a lodging property in London sometime in AD 1760. The hotel word is derived from the French hôtel, which refers to a French version of the townhouse.

The hospitality industry is among the oldest commercial activities in the world. It is, in fact, an integral part of the larger business enterprise known as travel and tourism, which provides a wide range of travel-related services, such as modes of travel, accommodation, food and drinks, recreational activities, and other facilities required by the modern-day traveler.

A hotel or inn is defined by British Law as a place where a bona fide traveler can receive food and shelter, provided he is in a position to pay for it and is in a fit condition to receive it.

Hence, a hotel must provide food and lodging to a traveler on payment, but the hotel has the right to refuse if the traveler is not presentable or is not in a position to pay for the services.

Alternatively, a hotel may be defined as an establishment whose primary business is to provide lodging facilities to a genuine traveler along with food, beverages, and sometimes recreational facilities on a chargeable basis.

A hotel is thus an establishment that provides paid accommodation, generally for a short duration. Hotels often provide a number of additional guest services, such as Restaurants, Bars, Swimming pools, Healthcare, Retail shops, business facilities like conference halls, banquet halls , board rooms, and space for private parties like birthdays, marriages, kitty parties, etc.

There might also be a minibar containing snacks and drinks, and a tea and coffee-making unit with an electric kettle, cups, spoons, and sachets containing instant coffee, tea bags, sugar, and creamer.

• Read next: What are the Differences between a Hotel and a Motel

Dipayan Mondal

Dipayan is the author of this blog. He completed his hotel management degree from GNIHM, Kolkata. And he is very passionate about the hospitality industry. And right now, he is working as a successful hotelier in a 5-star hotel.

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Last Updated on September 20, 2023 by Dipayan Mondal

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Classification of Hotel – The Only Guide you Need to Read

Hotels are classified based on several factors such as size, target market, location, available facilities, the level and type of service, affiliation, and ownership. Apart from these parameters, hotels can also be rated according to the Crown, Star, or Diamond system, which depend on their geographic location. These classifications help visitors and guests to have an overview of a hotel even before visiting the property in person. As a result, classification plays an essential intermediary role in facilitating trade and trust between the property and the customer.

Hotels obtain diamond ratings to enable identify the level and standard of services without having to visit the property. Consequently, trust develops between people, which is vital in facilitating trade. On the other hand, the categorization of hotels ranges from the lowest to the highest on a scale of 1-5. In this regard, this tutorial discusses the classification of hotels in the following sections, based on the parameters mentioned above.

Classification of Hotels – Types, Features & Characteristics

1. Classification Based on Size

Using the size parameter, hotels can be classified into;

• Small Hotels. These are hotels whose number of guest rooms does not exceed 25.
• Medium Hotels. They include hotels with the number of guest rooms ranging between 26 and 100.
• Large Hotels. These are hotels whose number of guest rooms ranges between 101 and 300.
• Very large Hotels. These are hotels with more than 300 guest rooms.

2. Classification Based on Star

This categorization rates hotels on a scale of 1-5, as listed below;

• 1 Star Hotels. These include all the smaller hotels under the management of a proprietor. 1 Star hotels are generally characterized by a personal atmosphere and are often located within the vicinity of affordable attraction sites or a major intersection with convenient transportation. These hotels have basic but clean furnishings, and most of them may lack an on-site restaurant, though they are generally within reach by walking. 1 Star hotels need to have 10 lettable bedrooms or more, 25% of which should be equipped with an attached bathroom. Every 4 of the remaining rooms should share a bathroom. Moreover, 25% of the bathrooms should be equipped with Western WCs. The reception counter should have a telephone for use by the guests.
• 2 Star Hotels. These hotels should be developed in a suitable locality with beautiful environs. They need to have a reception counter that has a telephone for use by the guests. Furthermore, all the private and public rooms should be equipped with air conditioning facilities and support quality. 2 Star hotels need to hire experienced, efficient and courteous staff that is always in presentable, clean uniforms. They should have a minimum of 10 lettable rooms, of which 75% need to have attached bathrooms fitted with showers. Also, a minimum of 25% of the rooms needs to be equipped with air conditioning facilities. Each guest room should have telephone services, as well as a radio or background music, and they need to be furnished with curtains, carpets, and high-standard luxurious furniture.
• 3 Star Hotels. They have spacious accommodation, decorated lobbies, and efficient staff. These hotels are generally located in business areas with high-standard environs. 3-star hotels are equipped with furnished dining rooms, with a minimum of 20 lettable rooms, all attached with bathrooms that offer long baths. Also, at least half the number of the rooms need to have air conditioning facilities, as well as furnished, high-standard furniture, carpets, and curtains. The hotels have a reception, information, finance counter, and conference facilities, all attended by qualified, highly trained, and experienced personnel. Laundry serviced are provided, together with high-end housekeeping services, and each guest room should have telephone services, radio, or background music.
• 4 Star Hotels. These hotels are found in areas with distinct architectural features and high-standard immediate environs. The hotels have a reception, information, finance counter, and conference facilities, all attended by qualified, highly trained, and experienced personnel. The hotels need to have a minimum of 25 lettable rooms, all attached with bathrooms that offer long baths. 4 Star hotels have a separate special restaurant designed with dancing facilities. Also, each guest room should have telephone services, radio, or background music.
• 5 Star Hotels. These hotels are found in areas with distinct architectural features and high-standard immediate environs. The hotels have a reception, information and finance counter, as well as conference facilities all attended by qualified, highly trained and experienced personnel. The hotels need to have a minimum of 25 lettable rooms, all attached with bathrooms that offer long baths. Moreover, laundry serviced are provided, together with high-end housekeeping services, and each guest room should have telephone services, radio, or background music. The swimming pool should be available and ample parking space.

How a Hotel Earns a Five-Diamond Award

There are 5 simple steps a hotel has to achieve in order to earn the Five-Diamond award. These steps are discussed in the following section;

• Step 1. The first step involves talent selection, in which employees are hired on the basis of how their natural characteristics align with the job requirements and daily commitments. For instance, if the position to be filled is that of a front desk attendant, a person to be hired should be the one who smiles naturally quite often, is easily approachable to everyone.
• Step 2. This step involves taking the new employees through a thorough orientation program before they are assigned their respective roles. The orientation could take several days or weeks and involves classroom training regarding the values of the company, such as service values, credo, and standards. There is also technical classroom training, in which the company values are put into application, such as engaging different guests in enticing conversations, directing them to various locations, and developing meaningful relationships. On the third day of the orientation, employees are introduced to their personal trainers for a session lasting 20 days, ensuring they comprehensively understand their roles. Employees are then certified by their personal trainers once they successfully completed their training, or they are failed if they do not exceed the trainers’ expectations.
• Step 3. After working with personal trainers for 21 successive days, employees embark on classroom discussions about what has been learned regarding their job. They must understand as well as uphold the philosophy of the company and, if need be, seek additional training. Moreover, employees need to provide feedback to the company’s general manager based on their likes and dislike concerning their job. From there, the company’s general manager shares the information from the employees with senior executives to make environmental adjustments or provide additional assistance and training where necessary.
• Step 4. Employees are normally taken through line-up sessions on a daily basis. On one of such sessions, the managers of each department in the company convene a meeting that lasts 15 minutes in order to assess and review the company standards. Additionally, the managers highlight one of the various service values and use it to reinforce further whatever has been taught during the orientation. Comments from guests are also reviewed, and there is a storytelling session to help pinpoint how the company’s service values can be integrated into real-life situations.
• Step 5. The last step involves employee recognition, which is given in situations where employees are cited doing the right thing, and the recognition is meant to encourage them.

This simple yet effective process is what determines whether a hotel receives a Five-Diamond award or not. The process is aimed at ensuring that employees are knowledgeable regarding their new responsibilities, are polite, and can provide the requirements of the guests visiting the company. Moreover, employees should be good at anticipating the needs of the guests by performing or offering additional services in each interaction, and these services need to be seamless, quick, and unobtrusive.

3. Classification based on Location and Clientele

Based on location, hotels can be categorized into;

• Downtown Hotels. They are usually within or close to a city’s business center, public offices, shopping areas, and theatres. In other words, these hotels are within the city’s commercial hub, have high room rates, and most of their customers are business clientele. They are designed to cater to the leisure or business needs of traveling public figures. Among these types of hotels include luxury, business, mid-scale, economy, suites, or residentials, all of which provide a wide array of services, as well as high-class accommodation facilities. The luxury hotels take the lead in providing the most enticing décor, concierge floors, butler service, secretarial services, as well as the latest technology or Wi-Fi connection in all the guest rooms. Moreover, other unmatched services include computer and fax machine services, ticket office, car rental, beauty salons, airline office, health spas, as well as on-call or on-duty nurse or doctor services. In general, downtown or city center hotels have exquisite restaurants, lounges, coffee shops, conventions, conference rooms, ballrooms, and fascinating night spots. Examples of these hotels include the Drake Hotel found in Chicago, Ramada Hotel in New York City, Days Inn Hotels, and the Embassy Suites.
• Sub-urban Hotels. These are hotels built closer to the city’s outskirts, with similar facilities as those in downtown hotels. Sub-urban hotels are preferred by people who do not want to stay within the city center. Since the room rates in these hotels are moderate, they attract budget travelers.
• Resort Hotels. They are located in tourist destinations, such as sea beaches, hill stations, and the countryside, and are characterized by a natural, calm ambiance. The room rates of resort hotels may vary based on the services offered. Most of the activities associated with resort hotels are leisure activities, including golf, as well as winter and summer sports. Destination resorts provide peculiar appeal to group and leisure travelers and are usually designed to be self-sufficient and all-encompassing. As a result, the guests and visitors will not have to look for entertainment, relaxation, recreation, or meetings outside the property. The people that visit resort hotels are driven by the search for a good summer and winter climate in order to find relaxation and engage themselves in various recreational activities. Most of the resort hotels are located in remote areas, and many host guests, most of whom are considered “captured clientele,” spend days in these properties. This poses challenges to the resort managers, apart from the common seasonality problem, where resorts may not be operational for the whole year, while others go through periods characterized by low occupancy. These challenges influence the attraction, training as well as retention of competent staff.

Another pressing challenge arises when many guests have to travel long distances in order to reach the resort hotels. As a result, they end up staying longer at the resort hotels than at the transient hotels, posing a challenge in quality service provision. The meals and beverage manager is forced to ensure that quality and varied menus are served attractively and attentively. This is achieved when the resort hotels decide to use cyclical menus that are served repeatedly every 14 to 21 days.

• Airport Hotels. These hotels are developed near airports to offer commercial services and are patronized by stopover passengers. They usually receive many travelers that depart and arrive in the world’s major airports. These guests are a wide variety of leisure, group, and business travelers. Passengers that happen to be late or early for their flights book and spent time at the airport hotels, while others can rest as they wait to connect their flights. Most airport hotels have between 200 and 600 guest rooms with full service. The restaurant hours and room services are sometimes extended or offered for the whole 24 hours to meet all the needs of people with feelings of being in different and unfamiliar time zones.

Airport hotels are increasingly becoming the best choice for many business travelers because they offer and guarantee cost-effective and convenient transportation between their various destinations within the city and the airport. Hence, the hotels can be a good bargain for travelers since they provide free or inexpensive transportation services from the airport to the hotel and back.

• Motels: The term is a combination of ‘moto’ and ‘hotel.’ Motels are usually located along highways to offer modest lodging services. They offer accommodations, meals, parking space, garage facilities, and vehicle refueling services to highway travelers. You will find motels clustered close to freeways in the outskirts of major cities and towns, and most of them are currently being constructed in modules, with about 11 employees serving 100 rooms. The prices of the guest rooms are generally low, perhaps because the land acquisition, construction, as well as operating costs are reasonably down.
• Floatels : These are lodging properties designed to float on the water surface and can be constructed atop semi-submersible platforms or rats. They include houseboats and cruise liners and offer luxurious accommodation, as well as food and drinks to their guests.
• Rotels: These are hotels designed to rotate on wheels. Some of them may be equipped with air conditioning facilities and be attached to well-furnished bars and restaurants.
• Commercial or Business Hotels. These hotels are generally found within the commercial hub of a city to offer high-end services to business travelers. These services include fast-speed internet connection, drafting, photocopying and fax services, typing, complimentary newspapers, cable television, morning coffee, as well as access to movies and channeled music.
• Transient Hotels. These are hotels that provide services to en-route travelers. They are developed close to airports, seaports, and railway stations, operating around the clock to offer room and commercial services to transient travelers. Being 5-star hotels, these hotels target business clientele, airline personnel, and passengers whose flights have been canceled.
• Boutique Hotels. They are small and costly hotels that mainly target the elite class. Each room in these hotels has a unique personality, and the decoration style of each restaurant carries a theme of the menu, the food served, and the staff uniform. Boutique hotels provide a lodging experience different from the offered by mid-range and large hotels. Moreover, they have unique architecture, décor, size, and style qualities that make these hotels stylish, hip, relaxed and luxurious. By 2012, approximately 700 boutique hotels were in existence in the USA, and over 2,500 worldwide. Boutique hotels are smaller in size compared to other chain hotels, with between 25 and 125 guest rooms. Notable examples of boutique hotels include Kimpton Hotels, Kessler Collection, Rosewood, and Joie de Vivre Hotels.
• Residential Hotels. These are hotels meant to provide accommodation services to long-staying customers. Guests can stay for up to 2 years in these hotels, enjoying the modest services offered.
• Suite Hotels. They provide high-end personalized services, and their guest rooms are partitioned into living areas, kitchenettes equipped with microwaves and refrigerators, bedrooms with attached bathrooms, and dance floors. The hotel facilities are customized to include guest stationery, valet services, and fast-speed internet connectivity. They are patronized by tourists and affluent people that are after luxury.
• Bed and Breakfast Hotels. They include lodging establishments operated in the residence of large families. These hotels consist of houses with several rooms used to provide overnight services and commercial buildings having between 20 and 30 guest rooms. The services are provided by the hotel owner who stays on the premises or in its neighborhood. The services provided by the host are usually memorable in order to attract more guests. The host further provides the guests with restaurants, directions, and suggestions regarding local entertainment and sightseeing. Currently, many bed and breakfast hotels are in existence, and their rates range between $30 and $300 for a single night. The number of bed and breakfast hotels in the USA is estimated to be around 25,000, and this rapid is tethered around a set of certain factors. For instance, many business travelers find it hectic to partake of the process involving checking in out of various commercial hotels. Also, the escalation of prices in many transient hotels leaves the travelers with bed and breakfast hotels as the only affordable option. Another reason for the popularity of bed and breakfast hotels is that leisure travelers are usually after a large and spacious formal hotel that can accommodate them and their friends. The bed and breakfast hotels are fancied because they provide an atmosphere that is home-like at reasonable prices. The décor in these hotels varies depending on the hotel’s geographic location and the owner’s unique taste. Although the hotel owner is responsible for ensuring the provision of the necessary labor, they may employ part-time or full-time help.
• Casino Hotels. They are primarily meant to offer gambling facilities, attracting their clientele through gambling promotions, extravagant shows, and charter flight services to clients. This industry is gaining momentum at a faster rate, and its impact is being seen in how it is quickly reshaping the USA’s economy as an entertainment industry. This is because the recreation and entertainment sectors are vital drivers of economic growth by boosting consumer spending, resulting in the industry’s tremendous prosperity. In the casino industry, gaming is among the rapidly-growing entertainment sectors.

Apart from gaming, there are dining cuisines, dance clubs, health spas, and dazzling shows. Casino hotels are equipped with high-standard gambling services, special restaurants, and bars operating 24 hours. The guest rooms of these hotels are equipped with Wi-Fi connectivity, workspaces, computers, photocopying and fax machines, travel bureaus, business centers, and room service. Furthermore, larger and more spacious casinos attract conventions, which is a highly lucrative business.

• Conference Centers. They are designed to provide services to conference delegations by availing rooms, conference halls, meals and drinks, flip charts, whiteboards, as well as overhead projectors together with screens, public address systems, and computers. These hotels are designed to provide facilities that meet the needs of various groups that attend and hold conventions and are an attraction for leisure travelers. In their service provision, conference hotels abide by the guidelines set forth by the International Association of Conference Centers, IACC. On the other hand, convention hotels have at least 300 guest rooms, minimum meeting space of 20,000 square feet, as well as vast areas for accommodating hundreds of guests. Moreover, numerous banquet areas are all around and within the convention hotel complexes.

Convention hotels are designed with concierge floors to meet the needs of individual guests. The services offered at these hotels include 24-hour room service, laundry services within the rooms, travel desks, business centers, as well as shuttles for transportation to and from the airport.

• Green Hotels. These are properties that are environmentally-friendly, developed, and managed with the aim to institute water and energy-saving programs, as well as reducing solid waste.

4. Classification Based on Ownership

Under this classification, we have the following categories of hotels;

• Independent Hotels. These are hotels run on an ownership basis without any contract or affiliation with other properties or ties with other hotels regarding procedures, policy, and financial obligation. These hotels do not need to uphold a certain image and are not required or obligated to maintain any targets.
• They are hotels that develop from one central hotel, usually spreading to other cities and regions but providing the same services. The administration manages several hotels in different areas. Chains operate under management contracts, franchises, or referral groups.
• Management Contracts. These are contracts between property owners and hotel operators, in which operators are employed and assigned full responsibility to operate and manage the hotel.
• Franchise: This is a mandate from a company given to an individual or another company to sell products and services for some time, using its trademark as per the guidelines laid down. The authorizing company is a chain member and makes use of the brand image, goodwill, and name at a particular fee.
• Referral Groups. They comprise independent hotels amalgamated for a common purpose, with adequate consistency in quality service provision for customer satisfaction.
• Condominiums: These are hotels purchased and owned by guests in the form of second homes. Single owners share the hotels and informing the management when they are to occupy the property. When the management decides to rent out a unit of the property, the owner gets the revenue.

5. Classification Based on Services

• World Class Services Hotels. These hotels are also called luxury or upmarket hotels and mainly target the affluent. They provide high-end, personalized services with a keen emphasis on class and excellence. Luxury hotels offer exquisite décor, upscale lounge and restaurants, opulent rooms, concierge services, and ample facilities. Moreover, these hotels have designer swimming pools, tennis courts, golf courses, shopping arcades, health spas, beauty salons, as well as sauna and Jacuzzi.
• Mid-Range Service Hotels. They come after the Upmarket hotels, offering modest services to clients, most of whom are travelers. These hotels offer room services, as well as 24-hour railway or airport commute services. Most Mid-Range hotels have between 150 and 300 guest rooms.
• Budget Hotels. These hotels focus on providing services at meetings and have inexpensive, clean, and comfortable rooms. They are patronized by budget-concerned travelers and families. Also known ass economy hotels, they are increasingly becoming popular, especially within the last two decades. They offer clean, well-furnished, and moderately priced rooms. Notable examples of this economy hotels include Hampton Inn, Holiday Inn Express, Fairfield Inn, Baymont Inn, Wingate, County Inn, and Super 8. Budget hotels do not provide restaurant services, meals, and beverages but serve their guests a luxurious continental breakfast. This explains why these hotels rose to fame due to their focus on bed selling rather than meetings or meals. As a result, they successfully managed to offer their services at rates 30% lower than mid-priced hotels. Generally, budget hotels have undergone significant growth to represent 15% of the total number of hotel rooms.

6. Classification Based on Staying Duration

• Commercial Hotels. People can only stay in these hotels for a few days or a week.
• Transient Hotels. These are hotels in which most of the guests (75%) are en-route residents who stop to spend a short period at the hotel before proceeding with their journey.
• Semi-resident Hotels. They are hotels that accommodate people staying for some weeks or months before moving to another location.
• Apartment or Residential Hotels. These hotels are apartments offering a dining room, meal service, and maid service. They can be luxurious or moderately priced, and their rooms are usually sold on a yearly or monthly basis. Residential Hotels have operational restaurants, telephone services, as well as valet and laundry services.
• Extended-Stay Hotels. They are lodging-like hotels with features that provide home-like amenities. They offer discounts of about 7 days for extended stays and have laundry facilities, as well as guest rooms complete with kitchens. These hotels are developed to cater to those guests that decide to stay for a certain period. However, they also receive the guests that intend to stay for shorter periods their there is sufficient space. The long-staying guests are attracted by the cut in room prices based on the time they spend at the hotel. Many of the guests arriving at these hotels are relocating families, businesses, as well as professional or technical guests. These lodging brands range from three-bedroomed apartments to guest rooms and studios. The guests arriving at these hotels can stay for a period ranging between one week and 6 months. The guest rooms are well-furnished with linen and have stocked kitchens. Moreover, there are housekeeping services that are offered on either a weekly or daily basis. On top of these, visitors may get the opportunity to use and enjoy swimming pools, tennis courts, fitness centers, as well as limited meals and drinks.

Extended – stay hotels provide nearly 25% more room at the same fee as other regular hotels within a similar price range. This additional space may be in the form of a kitchen or lounge. Some examples of extended-stay hotels include Dense Inns, Embassy Suites, Guest Quarters, Fairfield Suites, and Homewood Suites.

7. Alternative Accommodation

The alternative hotel classification gives rise to the following types of accommodation opportunities;

• Boarding Houses. Also known as lodges, boarding houses are located far from the city center. Lodges are self-sufficient modest hotels offering standard facilities, including meals and beverages and comfortable rooms. They are meant to provide meals and accommodation for a certain period.
• Youth Hostels. They are established to provide accommodation for the youth that travel in search of education, recreation or adventure, and cannot afford the highly-priced hotels. These establishments mainly provide inexpensive accommodation, a cafeteria, and common bathing facilities.
• Camping Grounds. They are located in open areas within cities to provide parking space, water, toilets, and electricity. They are regulated by municipalities to ensure they meet the set regulations concerning service quality and cost.
• Railway or Airport Retiring Rooms. They are established to offer convenience to transit travelers, usually located at international and domestic airports, as well as major railway stations. They are inexpensive and are equipped with air conditioning facilities.
• Paying Guest Accommodation. This is a non-institutional accommodation offered by households in various locations. It is lately gaining popularity in big metropolitan cities, especially among employed youth coming in from other towns, as well as outstation students.

The Lodging Industry

Hotels can be categorized using several parameters, and they also have more than one affiliation. Some of the methods used to classify hotels include the Smith Travel Research system, the American Automobile Association (AAA) 5-Diamond award, and the Forbes Travel Guide 5-Star rating. The Smith Travel Research approach categorizes hotels using the parameters of luxury, upscale, upper-upscale, midscale, upper midscale, as well as economy.

Hotel Affiliations

Hotels may have more than a single affiliation, such as chains, operations, parent companies, management companies, asset management companies, owners, and marketing groups. In this case, a hotel becomes affiliated with a certain brand when it belongs to a particular chain. Statistics reveal that 22 chains were already in existence in the USA by 2013, having 50,000 additional rooms. Also, there were 24 chains around the world, with more than 75,000 guest rooms. Most top-rated parent companies often have various chains, such as Hilton Worldwide, Marriott International, and Wyndham Worldwide.

Regarding big chains, each hotel classification usually has a different hotel. Parent companies may low, middle and high-end chains, or they may choose to focus on a single area. For instance, the Waldorf-Astoria and Conrad brands are both owned by Hilton Worldwide and are considered the luxury hotels of the company. Moreover, Hilton and Embassy Suites brands are upper upscale, Homewood Suites and Hilton Garden Inn are upscale, while Doubletree Club and Hampton Inn are considered upper midscale. The midscale hotel classification results in hotels such as the Ramada and Howard Johnson brands, which are owned by Wyndham Worldwide, the Sleep Inns or Quality Inns brands, owned by Choice Hotels International. Examples of economy hotels are Super 8 or Days Inn brands, owned by Wyndham Worldwide, and Rodeway Inn or Econo-Lodge brands, owned by Choice Hotels International. Hotel classification can also result in categories such as corporate, independent, or franchise hotels. In this case, corporate hotels are managed or owned by parent companies, franchises are run by third parties, in which parent companies are entitled to certain franchise fees. On the other hand, independent hotels have no affiliations with chains or parent companies. Hotels may further have affiliations with management companies. Moreover, they may have affiliations with marketing groups and memberships. Such affiliations result in various benefits, including reservation services and marketing assistance.

Another classification of hotels is the quasi-chains, which have emerged recently as integrations of chain and independent hotel marketing groups. Most quasi-chains are developed to merge independent hotels with parent companies. This would enable independent hotels to enjoy the many benefits that come with being under a parent company, such as marketing, purchasing, and reservations. Among the latest quasi-chains to emerge are Autograph Collection, created by Marriott, Starwood’s Luxury Collection, Ascend, created by Choice Hotels, and Zilara.

Hotel Classification Based on the AAA and Forbes Systems

The AAA classification system descriptively evaluates hotels it rates through offering additional services in each interaction. The services rendered must be seamless, quick, and unobtrusive. In this case;

• 1-Diamond properties are characterized by a roadside appeal rated as simple and also have fundamental lodging needs.
• 2-Diamond properties have a roadside appeal said to be average, as well as some landscaping and interior décor enhancement.
• 3-Diamond properties have a level of sophistication reflected in comfort and high-quality services.
• 4-Diamond properties are characterized by a roadside appeal considered to be excellent and satisfactory service provision to customers.
• 5-Diamond properties provide the highest quality services and sophistication.

The same classification technique used by the AAA system is employed by Forbes Travel Guide, resulting in the following hotel categories;

• Five-Star properties comprise hotels providing unforgettable experiences through flawless and high-class services, accompanied by the finest amenities. These hotels have intuitive, passionate, and engaging staff that are perfect at beating customer expectations in service delivery.
• Four-Star Hotels provide distinctive, inviting, and exciting elements that are also enjoyable. There is a keen emphasis on detail in concept design and product quality.
• Recommended hotels have enhanced amenities guaranteeing customers a formidable sense of location through style and function.

Another hotel classification approach is based on parameters such as geography, price, location, and services provided. The criteria used by the United Nations World Tourism Organization (UNWTO) classifies hotels geographically either as world, continent, subcontinent, country, market, or submarket. However, hotel managers or owners must know and understand the type of market they operate since hotel performance is evaluated against market properties. Hotels can also be categorized under submarkets or tracts.

The Smith Travel Research is a popular system employed in classifying hotels using a 7-scale categorization, 6 chain hotels, and 1 independent hotel categories. Moreover, hotels are classified based on their location, benefits, and features.

Bottom Line

Different hotel classification methods have been discussed in this article for the benefit of the travelers seeking adventure, leisure, or business interactions in new environments.

The classification is based on several factors such as size, target market, location, available facilities, the level and type of service, affiliation, and ownership. Moreover, hotels can also be rated according to the Crown, Star, or Diamond system, which depend on their geographic location. These classifications help visitors and guests to have an overview of a hotel even before visiting the property in person. As a result, classification plays an essential intermediary role in facilitating trade and trust between the property and the customer.

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Chapter 2 Hotel Classifications

Oct 23, 2014

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Chapter 10 The World of Lodging. Hospitality Services : Food & Lodging By: Johnny Sue Reynolds. Chapter 2 Hotel Classifications. Front Office Operations & Management By Ahmed Ismail. 1. Objective. After reading this chapter, you should understand: How hotels are classified .

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Chapter 10 The World of Lodging Hospitality Services : Food & Lodging By: Johnny Sue Reynolds Chapter 2Hotel Classifications Front Office Operations & Management By Ahmed Ismail 1

Objective After reading this chapter, you should understand: How hotels are classified . Describe the characteristics of full-service hotels, limited-service properties, specialty accommodations, and institutional housing. List the three type of hotel ownership. Hotel rating system. 2

Introduction • The hotel pioneers discussed set the groundwork for many of the designs, services, and amenities considered commonplace today. • Criteria for identifying hotels are based on: size location product type 3

Hotel Sizes • The industry use the following to determine a hotel’s size based on its number of rooms. ClassificationNumber of Sleeping Rooms Small 1 to 150 Medium 151 to 400 Large 401 to 1500 Mega 1501 and over 4

Management salaries increase as the number of guest rooms increase. • A larger hotel will theoretically be harder to manage (due to a larger staff, more outlets, and a greater amount of meeting space). 5

Larger hotel sizes will also necessitate a greater number of specialized management positions. • A large-size hotel many have a front office manager as well, but reporting to him/her may be the following: (assistant front office managers, front des managers, valet manager, concierge manager, PBX manager, bell captain, parking garage manager, numerous supervisors, and so on). 6

Assignment:Hotel Types (pg. 45-46) See next slide for an example 7

Small Hotel in Kingwood La Quinta Inn & Suites--Kingwood 22790 US 59; Kingwood, TX 77339 Phone: 1-281-359-6611; Fax: 1-281-359-7711 Hotel Information 2 Floors 50 Rooms 1pm Check In 12pm Check out Amenities Free Bright Side Breakfast™ Free Wireless High-Speed Internet Access Spa Pets welcome Guest Room Amenities Refrigerator in some rooms Premium Cable Channels Cost: $110.00

Types of Lodging Businesses

Lodging businesses can be organized into four categories based on level of service: full-service hotels, limited-service properties, specialty accommodations, and institutional housing. • Full-servicehotels pride themselves on their high level of service and usually charge the highest prices. • Limited-service propertiesfocus on charging lower prices. Providing fewer services.

Specialty accommodations vary in their levels of service, but usually proved less than full-service hotels. Some specially accommodations provide guest rooms with private baths, telephones, and televisions. Institutional housing is provided for people who live in institutions, such as schools, universities, hospitals, prisons, and the military. The names of the properties will include words such as hotel, inn, motel, motor inn, lodge, resort and bed-and-breakfast.

Full-Service Hotel • A full-service hotel is large and provides many services. • First distinguish feature is architecture, two or more stories and over 3,000 rooms. • Second distinguish feature level of service. Services may included: luggage assistance, concierge service, one or more restaurants, bars, lounges, room service, meeting/banquet facilities, spa services, and recreational facilities.

A concierge is a hotel staff member who helps guest make arrangements, such as dinner reservations. A concierge also advises guests on what to do and see in the area around the hotel. • Five subcategories of full-service hotels: convention luxury condominium resort extended-stay

Convention Hotels • Convention hotel is designed to provide for the special needs of conventions and trade shows. • A convention is a large meeting, usually sponsored by a group for its members. Number of people attending 50 to 50,000.

Trade show is an exhibit during which people who have goods and services to sell show their goods and services. • Exhibit hall is the place where trade shows are held. Must be quite large. • Convention hotels are often located near a convention center. A convention center is locally funded, or privately owned structure that caters to large meetings, conventions and trade shows.

McCormick Place in Chicago

Luxury Hotels • Luxury hotel provides the highest level of amenities, service, room furnishings, public spaces, and technology. • Provide more services, more personal attention to guests, and more elegance than a typical full-service hotel.

Resort Hotels • Resort hotelcaters to the vacationer or leisure traveler. • A resort is a place that provides entertainment, recreation, and relaxation for vacationers. • Located near seashores, mountains, and hot springs.

Guests who stay for 5 to 29 days are called extended stay guests. Long-stay guests stay for 30 days or more. Normally these are business people. The major characteristic of these hotels is that they provide kitchen facilities and more than one room for each accommodation. Extended Stay Hotels

A suite is a hotel accommodation that consists of more than one room. All suite hotels were developed to provide more space at a lower cost. A suite in these hotels is usually tow hotel rooms joined together. These suites combine living space with kitchen facilities. Extended-&-long stay suites provide a full kitchen with dishes and utensils. Some have grocery shopping service for guests. Residential hotels cater to long-stay guests. The décor is usually more like a home with a kitchen, living area, and bedroom

New Condo Hotel Apartments at Manor Park Resort in Hua Hin, Thailand They offer many amenities. They have multi-room apartments with full kitchens. Usually individually owned. Property operated by a management company. Many new, upscale hotels are being build with condos above them. The owners can use the hotels amenities (room service, housekeeping). Condominium Hotels

Park Hyatt in Chicago

Two type of condo ownership: • Individual owner. • Time-share ownership. A time share owner own the right to use the unit for a specific time of the year.

Limited-Service Properties • Limited service property is smaller, provides fewer services, and is less expensive than a full-service hotel. • A motel is distinguished from a hotel by it architecture and level of service. Parking is close to the rooms. Rooms are entered from the outside and minimal services.

Motels offer a room with a bed, t.v.,phone, private bath, and daily housekeeping. • Many motels have begun to offer pools, continental breakfast. • Continental breakfast consists of breakfast foods that do not need to be cooked.

Inns refer to smaller hotels. Offer fewer amenities. Limited service properties are organized into two categories: limited service hotels budget hotels

Limited-Service Hotels Budget Hotels Budget hotels have the lowest rate and least amount of service. Focus on comfortable, clean place to sleep at the lowest rate. Motel 6 was the first of it’s kind with room for $6 a night in the 1960s. Ex.: Microtel is a newer property of this kind. Limited Service Hotels offer a medium level of service and a midrange price. Typically have 3 or 4 stories. Has the word Inn in the name, and offers more services than a motel but fewer than a hotel. No restaurant or bell attendant. Ex.: LaQuinta Inns, Hampton Inns, Fairfield Inns

Specialty Accommodations • Conference center…lodging facility, 60% of occupancy is generated by conference. • Lodges…rooms and housekeeping for guest to participate in recreational activities. • Bed & Breakfast…private home offering one or more guest rooms. • Hostels…an inexpensive place to stay rooms, kitchen, and bath are shared. No linen or toiletries. • Campgrounds…located in natural environment.

Institutional Housing • Dorms • Hospitals • Prisons • Senior housing

Assignment: Look up Hostels Around the World • http://www.hostels.com/ • http://en.wikipedia.org/wiki/Hostel

Assignment: Full & Limited Service • Make a poster that shows the difference among full-service hotels, limited-service properties, specialty accommodations and institutional housing. • Must have a picture that represent each.

Ownership & Management

Classified by the types of ownership: independent, chains, franchises Independent lodging property is a single-unit business not connected with any other business. Usually one owner. The owner could be a single person, a partnership, or a corporation.

Hotel Chains • Chains are multiple-unit businesses that have the same brand name and the same ownership. • A franchise is a unit of a chain that has been purchased by an outside owner. The outside owner runts the franchise in the way required by the chain owner.

Advantages of chains in brand name. • The chain owner also work to develop brand loyalty. One way is through frequent guest programs. • Ex.: Whenever you stay at a unit of the chain, you earn points. Like health club privileges or free nights stay.

Central Reservation Center is one office that handles the reservations for all the units in the chain. • A guest can call one toll free number to reserve a room at any hotel in the chain anywhere in the country or the world.

Hotel Management • Hotel Management is the day to day running of the hotel. Hotel management is often called hotel operation. • One person (or company) can own the hotel, and another person (or company) can manage it.

As far as customers are concerned, they identify the owner with the brand name on the hotel.

Hotel Location Classifications • Hotel location types are classified by physical positioning in relation to the customers in the area and to their tangible locale. • Hotel types/location: Downtown Resorts Highway Airport Suburban 40

Downtown Hotel Americas Houston, Texas Located next to the George R. Brown Convention Center (GRB) Apply to hotels located in dense urban areas. Traditionally they are located in the center of a city’s business district, near offices an retail stores and close to entertainment center. Many are full service. Usually attract business travelers during the week and leisure travelers on the weekends. 41

Suburban • Suburban hotels developed because businesses moved to the suburbs. • Accommodations were needed for business meetings, conventions, and individual business travelers and social events. La Quinta Hotel Kingwood, Texas 42

Highway As the highway system developed, the demand for lodging along the highways developed. Most accommodations along with highways are limited-service hotels and budget hotels.

Airport • This is the easiest one to identify. • The airport is the special attraction. • Commonly provided complimentary shuttle service to and from the airport to make it easy for the traveler. Hours for the restaurants, lounges, and other facilities may be longer to accommodate travelers. • Multilingual staff a common to assist international travelers. 44

Gateway cities are traditionally those located in an area that make them the first practical stop for an international flight coming into a country. • In the USA, Seattle, San Francisco, & LA are gateways for Asia and the far East. • NY, Boston, & Washington are gateways to Europe and beyond. • Miami is gateway to South America. • Improvements in airplane technology are allowing for longer direct flights from cities not commonly considered gateways (Chicago, Minneapolis & Atlanta) are good examples. 45

Resort • Resort can be located near some sort of special attraction that attracts guests for a reason other than the hotel itself. An ocean, natural wonder, mountain, amusement park, or golf course can be that attraction. • Hotel that create their own special attraction can also be considered resorts. Health spas, private gold and/or tennis facilities, expansive poor areas, and other unique signature attractions created by the hotel itself allow for the resort location classification. Half Moon Bay Resort in Montego Bay Jamaica 46

Service Level • A hotel’s service level is measured by the amount of actual and perceived consideration a guest can reasonably expect to receive. • A consumer perceives a value in receiving quality service. • In the hotel industry, the differences in service levels is often (but not always) tied to incremental increases in cost. 47

Full-service hotels, by definition, provide their guest with services, amenities and facilities that they want or need to complete a total hotel experience. Service include but not limited to: restaurant(s) room service meeting space business center health club/rec. facility bell staff Limited service hotels typically do not offer the above services. The most notable differences are lack of food or beverage outlets and no meeting space. 48

Target Market • A target market is the market segment the lodging business focuses on. • Market Segments: business convention/meeting long-stay leisure budget special 49

Independent Hotel Ratings • A star system is primarily used to denote the level of quality and service, with one star being the lowest and five stars being the highest level. • International travelers can be reasonably confident about what to expect by using these stars as a guide. • The criteria by which each hotel is judged may vary from country to country. 50

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You might even have a presentation you’d like to share with others. If so, just upload it to PowerShow.com. We’ll convert it to an HTML5 slideshow that includes all the media types you’ve already added: audio, video, music, pictures, animations and transition effects. Then you can share it with your target audience as well as PowerShow.com’s millions of monthly visitors. And, again, it’s all free.

About the Developers

PowerShow.com is brought to you by  CrystalGraphics , the award-winning developer and market-leading publisher of rich-media enhancement products for presentations. Our product offerings include millions of PowerPoint templates, diagrams, animated 3D characters and more.