Classification of hotels

1. 1. CLASSIFICATION OF HOTELS<br />BY:<br />SHANTIMANI SATHWARA<br

/>ASST.PROF, PCTE<br />
2. 2. <ul><li>HOTELS CAN BE CLASSIFIED IN THE FOLLOWING WAYS:
3. 3. ON THE BASIS OF SIZE
4. 4. ON THE BASIS STAR SYSTEM
5. 5. ON THE BASIS OF LOCATION
6. 6. ON THE BASIS OWNERSHIP</li></ul>CLASSIFICATION OF HOTELS<br />
7. 7. <ul><li>SIZE REFERS TO THE NUMBER OF ROOMS. VARIOUS CATEGORIES
ON THE BASIS OF SIZE ARE:
8. 8. SMALL HOTEL- A HOTEL WITH 25 ROOMS OR LESS IS CALLED A SMALL
HOTEL.
9. 9. AVERAGE HOTEL- A HOTEL WITH 26 TO 99 ROOMS IS CALLED AN
AVERAGE HOTEL.
10. 10. ABOVE AVERAGE HOTEL- A HOTEL WITH 100 TO 299 ROOMS IS CALLED
ABOVE AVERAGE HOTEL.
11. 11. LARGE HOTEL- A HOTEL WITH MORE THAN 300 ROOMS IS CLASSIFIED
AS LARGE HOTEL.</li></ul>CLASSIFICATION OF HOTELS ON THE BASIS OF
SIZE<br />
12. 12. <ul><li>THE STAR CATEGORY TO THE HOTELS ARE GIVEN BY THE
COMMITTEE CALLED HOTELS AND RESTAURANTS APPROVAL AND
CLASSIFICATION COMMITTEE (HRACC). </li></ul>ONE STAR<br />TWO
STAR<br />THREE STAR<br />FOUR STAR<br />FIVE STAR<br />FIVE STAR
DELUXE<br />FIVE STAR SUPER DELUXE<br />CLASSIFICATION OF HOTELS
ON THE BASIS OF STAR SYSTEM<br />
13. 13. CITY/DOWNTOWN/COMMERCIAL HOTEL: These hotels are located in the heart
of the city.<br />These hotels are more expensive than the suburban hotels.<br />These
hotels are patronized by business men and high income tourists.<br />These hotels are
centrally located and at a convenient distance from markets, railway station, airport,
etc.<br />CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION<br />

14. 14. SUBURBAN HOTELS: These hotels are located in the suburb of cities, moderately
priced and are of mostly medium, large or small size.<br /> Normally these hotels are
patronized by low budget tourists.<br />The tourists who do not want to stay in the heart
of city as they want to be away from hustle and bustle of city, prefer these hotels.<br
/>Usually writers, poets, low budget tourists etc prefer to stay at suburban hotels.<br
/>CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd)<br />
15. 15. AIRPORT HOTELS: These are Hotels located near the Airports, especially
international airports.<br />Airport Hotels are popular because of their proximity to
major travel centers.<br />Airport Hotels vary widely in size and level of services.<br
/>Typical target market includes business clientele, airline passengers with overnight
travel layovers or canceled flights and airline personnel.<br />Hotel owned courtesy vans
often transport guests between the hotel and the airport.<br />CLASSIFICATION OF
HOTELS ON THE BASIS OF LOCATION (Contd)<br />
16. 16. MOTELS: Motels are also called Motor Hotels or transit hotel and are located
alongside the highways.<br />Motels are normally economical and they provide
comfortable bedrooms that motorists prefer to stay on their way for a night rest.<br
/>Motels have facilities of proper motor garage to service a car and a filling station to
refill vehicles, parking area for motor vehicles etc.<br />They also have road maps,
dormitory for drivers. These days Motels also provide various indoor and outdoor
facilities like Video parlor, Billiards, Table tennis, Cyber caf, Library etc.<br
/>CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION (Contd)<br />
17. 17. RESORT HOTELS: A resort located in the tourist interest places like hills, forests,
beaches, on an island, or in some other exotic location away from crowded residential
areas.<br />The recreational facilities and breathtaking scenery typical of most
resorts.<br />Most resort hotels provide extensive food and beverage, valet and room
services, sight seeing to vacationers.<br />Many resorts also provide special activities,
indoor and outdoor games for guests such as dancing, golf, tennis, horse riding, nature
hikes, skiing and swimming, health club, steam sauna bath, spas etc.<br />A more
leisurely, relaxed atmosphere distinguishes most resort hotels from other types of hotels.
<br />CLASSIFICATION OF HOTELS ON THE BASIS OF LOCATION
(Contd)<br />
18. 18. ROTELS: The hotels which rotate on wheels are called rotels. It is also called motel
on wheels. Best example of rotel in India is Palace on wheels. It is a luxurious train, fully
air-conditioned, well-furnished with attached restaurant and bar. The fare is inclusive of
train ticket, food, alcoholic beverages and sight seeing. The train starts from Delhi and
covers the tourist interest places of Rajasthan and Uttar Pradesh including TajMahal,
Agra, Mathura.<br />In Japan Rotels are parked in the parking slot in the late evening
and during day the rotel is towed away.<br />CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd)<br />
19. 19. FLOATELS: The hotels which floats on water are called floatels. The best examples
of floatels in India are House boats in Kashmir Dal Lake. These are luxurious suites

consisting of drawing room, dining room, bed room, sitting room, balcony, kitchen,
bathroom etc.<br />These days luxury ships are becoming popular for travelling. The
guests are offered cabins to stay. These float on sea water and these have all facilities of
five star hotels. <br />CLASSIFICATION OF HOTELS ON THE BASIS OF
LOCATION (Contd)<br />
20. 20. BOATELS: These are luxury boats/yachts which can ferry people from one place to
another. The best example of yachts are in Mediterranean or Caribbean, they can ferry
guest through canal-based narrow boat or Broad-based cabin cruiser.<br />In Sirhand,
Punjab there is restaurant on boat.<br />CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd)<br />
21. 21. TIME SHARE: This is a new concept in India but is picking up very fast.<br /> This
is also known as Vacation Ownership or Holiday Ownership concept.<br />These
properties are in resort areas like hills, beaches, forests etc.<br />Time share involves
individuals who purchases the ownership of accommodation for a specific week or
weeks.<br />The price of the property will depend on the week, one tends to buy.<br
/>The guest can choose a peak season, semi peak season or a lean season.<br
/>CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP<br />
22. 22. The owner pays a fixed price for certain number of years say 20 to 30 years and has a
right to stay at the hotel during rented week.<br />The guest also required to pay an
annual contribution towards the maintenance of apartment and public areas, electricity,
gas, water, safety, insurance etc.<br />The owner can also rent out the unit through
management.<br />The owner can also exchange their resort with any other resort either
directly owned by the company or through contract signed with any other
company/management by paying a nominal fee. <br />Best example of Timeshare in
India are Mahindra Holidays,Sterling Holiday Resorts, Avelon Resort, Nanda Tourist
Corporation etc.<br />CLASSIFICATION OF HOTELS ON THE BASIS OF
OWNERSHIP(Contd..)<br />
23. 23. CONDOMINIUM HOTELS: These are quite similar to Time share. These units are
developed on joint ownership basis.<br />Each owner purchases and has full right of an
unit he has purchased and shares the cost common to the complex, such as taxes,
insurance, maintenance and upkeep of public areas including swimming pool, health
club, parking, security, air conditioning, heating, cable, broad band etc.<br />Each owner
can occupy or sell his unit independently but is required to follow the rules and
regulations laid by the management. <br />CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)<br />
24. 24. In some cases the management can help the owner in renting out the property.<br
/>They take the full responsibility of the owners units safety and also pay to the owner a
major portion of the rent earned from renting out.<br />The management earns a major
portion by renting out conference hall and from catering.<br />Usually the management
requests the owner to rent out in case of major conferences. <br />CLASSIFICATION
OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..)<br />

25. 25. CHAIN HOTELS: A chain is usually classified as operating under a management
contract or as a franchise or referral group.<br />Chains usually make certain rules
regarding standards, rules, policies, procedures of affiliation etc.<br />In general, the
more centralized the organization the stronger the control over the individual property.<br
/>Some chains own affiliated properties, but many do not.<br />Some chains have strong
control over the architecture, management and standards of affiliated properties.<br
/>Other chains only concentrate on advertising, marketing, purchasing.<br
/>CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..)<br />
26. 26. INDEPENDENT HOTELS: Independent hotels do not have ownership or
management affiliation with other properties.<br />They have no relationship to other
hotels regarding policies, procedures, financial obligations, management, accounting
etc.<br />These may be registered as sole proprietor-ship or a private limited
company.<br />The owner may decide the standard, type of clientele, the tariff etc.<br
/>He may tie up with travel agencies to sell his property against commission.<br
/>CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..)<br />
27. 27. MANAGEMENT CONTRACT: Management companies are organizations that
operate properties owned by others.<br />Those other hotels may be owned by individual
persons, partnerships or private limited companies.<br />The individual hotel, under
construction, may contract with a professional hotel management company to operate the
proposed property.<br />These contracts are normally on a long-term basis.<br /> Some
management companies, when feel that they must have a hotel in a particular location
then they approach prospective individuals to build a hotel and operate under their
managements contract.<br />CLASSIFICATION OF HOTELS ON THE BASIS OF
OWNERSHIP(Contd..)<br />
28. 28. The management contract can even be signed before the construction starts.<br
/>After paying the management fees, operating expenses, the owners keep the balance
cash for paying their debts, taxes etc. and the balance is their net profit.<br />The
Management companies only take over the management of the company, whereas the
franchising companies provide the financial assistance, advertising, central reservation
facilities, marketing etc.<br />CLASSIFICATION OF HOTELS ON THE BASIS OF
OWNERSHIP(Contd..)<br />
29. 29. FRANCHISE: Franchise is a system in which the franchise owner grants another the
right or privilege to merchandise a product or service for a specified return.<br
/>Franchise Agreement is an agreement under which the owner operates as a member of
the chain, utilizing the brand image, name, goodwill and obtaining for a certain fee some
services of marketing and operating nature support from resources of a large
organization, advertising, sales promotion, technical and financial help etc.<br />The best
known franchising companies are Holiday Inn, Choice International, Quality Hotels &
Inns etc.<br />CLASSIFICATION OF HOTELS ON THE BASIS OF
OWNERSHIP(Contd..)<br />

30. 30. Referral Groups: referral Groups consists of independent hotels which have grouped
together for some common purpose.<br />Though the properties in the referral group
may be different from each other but there is sufficient consistency in the quality of
service to satisfy guest expectations.<br />The member hotels recommend guests to other
member hotels.<br />Best Western International, one of the largest hotel chains is the best
example of referral groups.<br />The referral groups also extend benefit of more
extensive reservation and expanded advertising through pooled resources.<br
/>CLASSIFICATION OF HOTELS ON THE BASIS OF OWNERSHIP(Contd..)<br />
31. 31. ON THE BASIS OF LENGTH OF STAY: <br />TRANSIT HOTELS: Motels and
airport hotels are the best example of these hotels. <br /><ul><li>These hotels are
patronized by those guests who are in transit and will be travelling further to their
destinations.
32. 32. Some times these hotels also charge room rent for half a day as guests would like to
stay just for a few hours.</li></ul>At times these hotels have much more than 100%
occupancy.<br />In India the motels have not become very popular as people do not
travel very long distances by their own vehicles. <br />OTHER CLASSIFICATION OF
HOTELS<br />
33. 33. TRANSIENT HOTELS: Rest houses, Government guest houses etc are the best
examples of transient hotels.<br />In these hotels one is not allowed to stay for a very
long time as these hotels are very economical and are patronized by the employees either
on transfer or on tour or on vacations.<br />OTHER CLASSIFICATION OF
HOTELS<br />
34. 34. RESIDENTIAL HOTELS: These hotels offer rooms/apartments on monthly basis and
even if a guest stays for a part of the month, is normally charged for the full month.<br
/>The best examples for these hotels are hostels, paying guest houses for students,
trainees, working people etc.<br />Some big companies also hire them for months/years
for their company executives for pleasure, business, training etc.<br />These can be
located in any part of the country, it may be a hill station, beach etc. for pleasure or a big
city or an industrial town for business.<br />OTHER CLASSIFICATION OF
HOTELS<br />
35. 35. SEMI RESIDENTIAL HOTELS: Most of the hotels in present days are semi
residential hotels and are located through out the country.<br />The guests, staying in
these hotels, are required to pay room rent on daily basis.<br />guest may hire the
accommodation for months or years together but the rent charged will be on daily
baiss.<br />The hotel may offer a special allowance on room rent to these guests.<br
/>OTHER CLASSIFICATION OF HOTELS<br />
36. 36. ON THE BASIS OF CLIENTELE:<br />HOSTELS: The students hostels are very
common both in schools and colleges.<br /><ul><li>These can only be patronized by the
students of a particular school or college.

37. 37. The hostels can also be attached to offices, banks etc.
38. 38. These are also called residential hotels as they charge on monthly, half yearly or
yearly basis.
39. 39. These hostels provide nutritive food, keeping in view the needs of the
residents.</li></ul>OTHER CLASSIFICATION OF HOTELS<br />
40. 40. Heritage Hotels: The Government of India to boost up tourism and to preserve the
India heritage, has started a scheme, where old heritage buildings, palaces constructed
before 1935 were converted into hotels.<br />Heritage Grand Hotels are those which are
more than 100 years old.<br />OTHER CLASSIFICATION OF HOTELS<br />
41. 41. BOUTIQUE HOTELS: These are very small and very expensive hotels and mainly
cater for elite class.<br />Though the hotel is small but still it has more number of
restaurants. Each one is decorated keeping in view a theme and the food served.<br
/>OTHER CLASSIFICATION OF HOTELS<br />
42. 42. ALL SUITE HOTELS: The All-suite concept a new addition to the hotel
industry.<br />These suites provide living room, bedroom, kitchenette etc.<br />OTHER
CLASSIFICATION OF HOTELS<br />

ypes of Hotels or classification of hotel by type

Hotels are classified according to the hotel size, location, target markets, levels of service ,
facilities provided, number of rooms , ownership and affiliation etc.

1.Size - Or number of rooms

Under 200 rooms
200 to 399 rooms
400 to 700 rooms
More than 700 rooms
The above categories enable hotels of similar size to compare operating procedures and
statistical results .
2.Target Markets
Hotel targets many markets and can be classified according to the markets they attempt to attract
their guests. Common type of markets include business, airport, suites, residential, resort ,
timeshare , casino , convention and conference hotels .

Business Hotels: - These hotels are the largest group of hotel types and they
primarily cater to business travellers and usually located in downtown or
business districts . Although Business hotels primarily serves business
travellers , many tour groups, individual tourists and small conference groups
find these hotels attractive. Guest amenities at business hotels may include
complimentary newspapers, morning coffee, free local telephone calls , Break
fast etc.

Airport Hotels: - These type of hotels typically target business clientele,

airline passengers with overnight travel layovers or cancelled flights and
airline crews or staff. Some hotels might give free transport between hotel
and airport . Some Ariport hotels also charges the guest by hour instead of
normal daily night charges.

Suite Hotels: - These kind of hotels are the latest trend and the fastest
growing segments in the hotel industry . Such hotels have a living room and a
separate bedroom. Professionals such as accountants, lawyers, business men
and executives find suite hotels particularly attractive as they can work and
also entertain in an area besides the bedroom.

Extended Stay Hotels: - Extended stay hotels is somewhat similar to the suite
hotels , but usually offers kitchen amenities in the room . These kind of hotels
are for longstayers who wants to stay more than a week and does not want to
spend on hotel facilities.

Serviced Apartments: - Serviced Apartment / Residential hotels provide longterm or permanent accommodation for Guest. Usually guest makes a lease

agreement with the hotel for minimum of one month up to a year. Rooms
generally include living room , bedroom, kitchen , private balcony , washing
machines , kitchen utensils etc. Unlike normal hotels Serviced apartment only
provide weekly one housekeeping service.

Resort Hotels: - Resort hotels are usually located in the mountains, on an

island , or in some other exotic locations away from city's . These hotels have
recreational facilities , scenery , golf , tennis , sailing , skiing and swimming .
Resort hotels provide enjoyable and memorable guest experiences that
encourage guest to repeat to the resort.

Bed and Breakfast / Homestays :- These are houses with rooms converted
into overnight facilities , this can size up to 1 to 10 guest rooms . They are
also known as 'Home Stay's'. The owner of the B&B usually stay on the
premises and is responsible for serving breakfast to guest .

Timeshare / Vacation Rentals: - Another new type or segment of the

hospitality industry is the timeshare hotels. These are sometimes referred to
as " Vacation-interval" hotels . Timeshare hotels are where the guests who
purchase the ownership of accommodations for a specific period.These
owners may also have the unit rented out by the management company that
operates the hotel.

Casino Hotels :- Hotels with gambling facilities are called Casino Hotels
.Although the food and beverage operations in casino is luxurious their
functions is secondary to and supportive of casino operations.

Conference and Convention Centres: - These type of hotels focus on meeting

and conferences and overnight accommodation for meeting attendees. They
also provide video conferencing facility, audiovisual equipment, business
services , flexible seating arrangements , flipchart etc. These hotels mostly
located outside the metropolitan areas and have facilities like golf , swimming
pools , tennis courts , fitness centres , spas etc.

3. Levels Of service

World class service: - These are also called luxury / Five Start hotels , they
target top business executives, entertainment celebrities , high- ranking
political figures, and wealthy clientele as their primary markets . They provide
upscale restaurants and lounges , Valet, concierge services and also private
dining facilities .

Mid-Range Service: - Hotels offering mid-range or otherwise 3 to 4 star hotels

service appeal the largest segment of the travelling public . This kind of
hotels does not provide elaborate service and have a adequate staffing . They
also provide uniformed service , food and beverage room service, in room
entertainment's and also Wi-Fi etc.

Budget / Limited Service: These hotels provide clean , comfortable , safe ,

inexpensive rooms and meet the basic need of guests . Budget hotels appeal
primarily to budget minded travellers who wants a room with minimum
services and amenities required for comfortable stay, without unnecessary
paying additional cost for costly services.

4. Ownership and Affiliations

Independent / Single Owner Hotels :- They do not have identifiable ownership

or management affiliation with other properties. Example for the same would
be family owned and operated hotel that is not following any corporate
policies or procedures.

Chain hotels :- Hotels which are part of a hotel chain and these kind of
ownership usually imposes certain minimum standards, rules , policies and
procedures to restrict affiliate activities . In general the more centralised the
organisation the stronger the control over the individual property .

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