CLASSIFICATION OF

HOTELS
BY:
SHANTIMANI SATHWARA
ASST.PROF, PCTE
CLASSIFICATION OF HOTELS
 HOTELS CAN BE CLASSIFIED IN THE FOLLOWING
WAYS:

 ON THE BASIS OF SIZE

 ON THE BASIS STAR SYSTEM
 ON THE BASIS OF LOCATION
 ON THE BASIS OWNERSHIP
CLASSIFICATION OF HOTELS ON THE
BASIS OF SIZE
 SIZE REFERS TO THE NUMBER OF ROOMS.
VARIOUS CATEGORIES ON THE BASIS OF SIZE
ARE:
 SMALL HOTEL- A HOTEL WITH 25 ROOMS OR LESS
IS CALLED A SMALL HOTEL.
 AVERAGE HOTEL- A HOTEL WITH 26 TO 99 ROOMS

IS CALLED AN AVERAGE HOTEL.

 ABOVE AVERAGE HOTEL- A HOTEL WITH 100 TO

299 ROOMS IS CALLED ABOVE AVERAGE HOTEL.

 LARGE HOTEL- A HOTEL WITH MORE THAN 300

ROOMS IS CLASSIFIED AS LARGE HOTEL.

CLASSIFICATION OF HOTELS ON THE
BASIS OF STAR SYSTEM
 THE STAR CATEGORY TO THE HOTELS ARE GIVEN
BY THE COMMITTEE CALLED “HOTELS AND
RESTAURANTS APPROVAL AND CLASSIFICATION
COMMITTEE (HRACC)”.
 ONE STAR
 TWO STAR
 THREE STAR
 FOUR STAR
 FIVE STAR
 FIVE STAR DELUXE
 FIVE STAR SUPER DELUXE
CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION
 CITY/DOWNTOWN/COMMERCIAL HOTEL:
These hotels are located in the heart of the
city.
 These hotels are more expensive than the

suburban hotels.
 These hotels are patronized by business men

and high income tourists.

 These hotels are centrally located and at a

convenient distance from markets, railway

station, airport, etc.
CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 SUBURBAN HOTELS: These hotels are located
in the suburb of cities, moderately priced and
are of mostly medium, large or small size.
 Normally these hotels are patronized by low

budget tourists.
 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.
 Usually writers, poets, low budget tourists etc

prefer to stay at suburban hotels.

CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 AIRPORT HOTELS: These are Hotels located near
the Airports, especially international airports.
 Airport Hotels are popular because of their
proximity to major travel centers.
 Airport Hotels vary widely in size and level of
services.
 Typical target market includes business clientele,
airline passengers with overnight travel layovers
or canceled flights and airline personnel.
 Hotel owned courtesy vans often transport guests
between the hotel and the airport.
CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 MOTELS: Motels are also called Motor Hotels or
transit hotel and are located alongside the highways.
 Motels are normally economical and they provide
comfortable bedrooms that motorists prefer to stay
on their way for a night rest.
 Motels have facilities of proper motor garage to
service a car and a filling station to refill vehicles,
parking area for motor vehicles etc.
 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 café, Library etc.
CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 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.
 The recreational facilities and breathtaking scenery typical

of most resorts.
 Most resort hotels provide extensive food and beverage,

valet and room services, sight seeing to vacationers.

 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.
 A more leisurely, relaxed atmosphere distinguishes most

resort hotels from other types of hotels.

CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 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 Taj Mahal, Agra, Mathura.
 In Japan Rotels are parked in the parking slot in the

late evening and during day the rotel is towed away.

CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 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.
 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.
CLASSIFICATION OF HOTELS ON THE
BASIS OF LOCATION (Contd…)
 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.
 In Sirhand, Punjab there is restaurant on boat.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP
 TIME SHARE: This is a new concept in India but is
picking up very fast.
 This is also known as ‘Vacation Ownership’ or

‘Holiday Ownership’ concept.

 These properties are in resort areas like hills, beaches,

forests etc.
 Time share involves individuals who purchases the

ownership of accommodation for a specific week or

weeks.
 The price of the property will depend on the week, one

tends to buy.
 The guest can choose a peak season, semi peak

season or a lean season.

CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 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.
 The guest also required to pay an annual contribution towards
the maintenance of apartment and public areas, electricity,
gas, water, safety, insurance etc.
 The owner can also rent out the unit through management.
 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.
 Best example of Timeshare in India are Mahindra
Holidays,Sterling Holiday Resorts, Avelon Resort, Nanda
Tourist Corporation etc.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 CONDOMINIUM HOTELS: These are quite similar to
Time share. These units are developed on joint
ownership basis.
 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.
 Each owner can occupy or sell his unit independently

but is required to follow the rules and regulations

laid by the management.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 In some cases the management can help the
owner in renting out the property.
 They take the full responsibility of the owner’s
units safety and also pay to the owner a major
portion of the rent earned from renting out.
 The management earns a major portion by
renting out conference hall and from catering.
 Usually the management requests the owner to
rent out in case of major conferences.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 CHAIN HOTELS: A chain is usually classified as
operating under a management contract or as a
franchise or referral group.
 Chains usually make certain rules regarding standards,

rules, policies, procedures of affiliation etc.

 In general, the more centralized the organization the

stronger the control over the individual property.

 Some chains own affiliated properties, but many do not.
 Some chains have strong control over the architecture,

management and standards of affiliated properties.

 Other chains only concentrate on advertising,

marketing, purchasing.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 INDEPENDENT HOTELS: Independent hotels do not
have ownership or management affiliation with other
properties.
 They have no relationship to other hotels regarding
policies, procedures, financial obligations,
management, accounting etc.
 These may be registered as sole proprietor-ship or a
private limited company.
 The owner may decide the standard, type of clientele,
the tariff etc.
 He may tie up with travel agencies to sell his property
against commission.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 MANAGEMENT CONTRACT: Management companies are
organizations that operate properties owned by others.
 Those other hotels may be owned by individual
persons, partnerships or private limited companies.
 The individual hotel, under construction, may contract
with a professional hotel management company to
operate the proposed property.
 These contracts are normally on a long-term basis.
 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.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 The management contract can even be signed
before the construction starts.
 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.
 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.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 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.
 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.
 The best known franchising companies are Holiday Inn,
Choice International, Quality Hotels & Inns etc.
CLASSIFICATION OF HOTELS ON THE
BASIS OF OWNERSHIP(Contd..)
 Referral Groups: referral Groups consists of independent
hotels which have grouped together for some common
purpose.
 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.
 The member hotels recommend guests to other member
hotels.
 Best Western International, one of the largest hotel chains is
the best example of referral groups.
 The referral groups also extend benefit of more extensive
reservation and expanded advertising through pooled
resources.
OTHER CLASSIFICATION OF HOTELS
ON THE BASIS OF LENGTH OF STAY:
TRANSIT HOTELS: Motels and airport hotels are the best
example of these hotels.
 These hotels are patronized by those guests who are in

transit and will be travelling further to their destinations.

 Some times these hotels also charge room rent for half a

day as guests would like to stay just for a few hours.

 At times these hotels have much more than 100%

occupancy.
 In India the motels have not become very popular as

people do not travel very long distances by their own

vehicles.
OTHER CLASSIFICATION OF HOTELS
 TRANSIENT HOTELS: Rest houses,
Government guest houses etc are the best
examples of transient hotels.
 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.
OTHER CLASSIFICATION OF HOTELS
 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.
 The best examples for these hotels are hostels, paying
guest houses for students, trainees, working people etc.
 Some big companies also hire them for months/years
for their company executives for pleasure, business,
training etc.
 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.
OTHER CLASSIFICATION OF HOTELS
 SEMI RESIDENTIAL HOTELS: Most of the hotels
in present days are semi residential hotels
and are located through out the country.
 The guests, staying in these hotels, are

required to pay room rent on daily basis.

 guest may hire the accommodation for

months or years together but the rent

charged will be on daily baiss.
 The hotel may offer a special allowance on

room rent to these guests.

OTHER CLASSIFICATION OF HOTELS
ON THE BASIS OF CLIENTELE:
HOSTELS: The students hostels are very common
both in schools and colleges.
 These can only be patronized by the students of a

particular school or college.

 The hostels can also be attached to offices, banks

etc.
 These are also called residential hotels as they

charge on monthly, half yearly or yearly basis.

 These hostels provide nutritive food, keeping in

view the needs of the residents.

OTHER CLASSIFICATION OF HOTELS
 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.
 Heritage Grand Hotels are those which are

more than 100 years old.

OTHER CLASSIFICATION OF HOTELS
 BOUTIQUE HOTELS: These are very small and
very expensive hotels and mainly cater for
elite class.
 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.
OTHER CLASSIFICATION OF HOTELS
 ALL SUITE HOTELS: The All-suite concept a
new addition to the hotel industry.
 These suites provide living room, bedroom,

kitchenette etc.