CLASSIFICATION OF

HOTELS
Hasley B. Belleza
Student
 Hotels are classified
TYPES according to the
hotel size, location,
OF target markets,
levels of service,
HOTEL facilities provided,
number of rooms,

S ownership
affiliation etc.
and
 CLASSIFICATION OF HOTELS
Classification on the basis of size refers to the number of
rooms (bed capacity) and should not be confused with the
SIZE OR building height, or the area of the property, or the gross sales,
etc. The term number of rooms refers to the lettable rooms and
NUMBER does not include those rooms which are convened for other use
such as for manager, housekeeper, accounts, etc. and rooms on
OF the ground floor and basement which are generally used for
offices, rentals, support services or other operational facilities
ROOMS leased for businesses and associations.
 CLASSIFICATION OF HOTELS
(i) a hotel of 25 moms or less is called a small hotel

SIZE OR
NUMBER
OF
ROOMS
 CLASSIFICATION OF HOTELS
(ii) one with 26 to 99 rooms is an average hotel

SIZE OR
NUMBER
OF
ROOMS
 CLASSIFICATION OF HOTELS
(iv) a hotel of more than 300 rooms is classified as a large hotel.

SIZE OR
NUMBER
OF
ROOMS
 CLASSIFICATION OF HOTELS
The hotel targets many markets and can be
classified according to the markets they attempt to
TARGET attract their guests. The common type of markets
MARKETS includes business, airport, suites, residential, resort,
timeshare, casino, convention and conference hotels.
 CLASSIFICATION OF HOTELS
(i) Extended-Stay Hotels
Extended stay hotels are somewhat similar to suite hotels, but
TARGET usually offers kitchen amenities in the room. These kind of
hotels are for long-stayers who want to stay more than a week
MARKETS and does not want to spend on hotel facilities. 
 CLASSIFICATION OF HOTELS
(i) Extended-Stay Hotels

TARGET
MARKETS
 CLASSIFICATION OF HOTELS
(ii) Service Apartment Hotels
Serviced Apartment / Residential hotels provide long-term or
TARGET permanent accommodation for Guest. Usually guest makes a lease
agreement with the hotel for a minimum of one month up to a year.
MARKETS 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.
 CLASSIFICATION OF HOTELS
(ii) Service Apartment Hotels

TARGET
MARKETS
 CLASSIFICATION OF HOTELS
(iii) Timeshare / Vacation Rentals
Another new type or segment of the hospitality industry is the
TARGET timeshare hotels. These are sometimes referred to as " Vacation-
interval" hotels. Timeshare hotels are where the guests purchase the
MARKETS ownership of accommodations for a specific period. These owners
may also have the unit rented out by the management company that
operates the hotel. 
 CLASSIFICATION OF HOTELS
(iii) Timeshare / Vacation Rentals

TARGET
MARKETS
 CLASSIFICATION OF HOTELS
(iv) Pension or guesthouse
These are very popular with tourists not wanting the large
TARGET hotel with many facilities they may never use but are looking
for a more personal place to stay which will cost less and have
MARKETS a ‘home from home feeling.
 CLASSIFICATION OF HOTELS
(iv) Pension or guesthouse

TARGET
MARKETS
 CLASSIFICATION OF HOTELS
A hotel may target many markets and can be
classified according to the market or Clientele and
Location they attempt to attract and serve.
LOCATIO
N
 CLASSIFICATION OF HOTELS
(i) Boatels
These are the hotel accommodations that are located on the water
especially the houseboats such as Shikara in Kashmir.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(ii) Floating Hotels
These are the hotels with floats on the water especially the cruise
ships or large lakes, or rivers.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(iii) Rotels
These are the hotels that run on wheels such as Deccan Odyssey train,
Palaces on wheels.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(iv) Suburb Hotels
These are the hotels that are located outside the city or in remote
areas. Budget guests use them.
.
LOCATIO
N
 CLASSIFICATION OF HOTELS
(v) Self-Catering Hotels
 These are the type of accommodations where the guest and owner
share the same premise.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(i) Business Hotels
These hotels are the largest group of hotel types and they primarily
TARGET cater to business travelers and usually located in downtown or
business districts. Although Business hotels primarily serve business
MARKETS travelers, 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, Breakfast etc. 

LOCATIO
N
 CLASSIFICATION OF HOTELS
(i) Business Hotels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(ii) Airport Hotels
These type of hotels typically target business clientele, airline
TARGET passengers with overnight travel layovers or cancelled flights and
airline crews or staff. Some hotels might give free transport between
MARKETS hotel and airport. Some Airport hotels also charge the guest by the
hour instead of normal daily night charges.  
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(ii) Airport Hotels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(iii) Suite Hotels
These kind of hotels are the latest trend and the fastest-
TARGET growing segments of the hotel industry. Such hotels have a
living room and a separate bedroom. Professionals such as
MARKETS accountants, lawyers, businessmen and executives find suite
hotels particularly attractive as they can work and also
& entertain in an area beside the bedroom.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(iii) Suite Hotels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(iv) Resort Hotels
Resort hotels are usually located in the mountains, on an
TARGET island, or in some other exotic locations away from cities.
These hotels have recreational facilities, scenery, golf, tennis,
MARKETS sailing, skiing and swimming. Resort hotels provide enjoyable
and memorable guest experiences that encourage guest to
& repeat to the resort.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(iv) Resort Hotels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(v) Bed and Breakfast/Homestays Hotels
These are houses with rooms converted into overnight facilities, this
TARGET 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
MARKETS responsible for serving breakfast to the guest.

&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(v) Bed and Breakfast/Homestays Hotels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(vi) Casino Hotels
Hotels with gambling facilities are called Casino Hotels.
TARGET Although the food and beverage operations in the casino are
luxurious their functions are secondary to and supportive of
MARKETS casino operations.

&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(vi) Casino Hotels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(vii) Conference and Convention Centers
These type of hotels focus on meeting and conferences and overnight
TARGET accommodation for meeting attendees. They also provide a video
conferencing facility, audiovisual equipment, business services,
MARKETS flexible seating arrangements, flipchart etc. These hotels mostly
located outside the metropolitan areas and have facilities like golf,
& swimming pools, tennis courts, fitness centers, spas etc.

LOCATIO
N
 CLASSIFICATION OF HOTELS
(vii) Conference and Convention Centers

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(viii) Motels
Motels have enjoyed an increase in their business in recent
TARGET years as the increase in private car owners has materialized. A
motel is a hotel mainly for motorists and located conveniently
MARKETS near a major motorway.

&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(viii) Motels

TARGET
MARKETS
&
LOCATIO
N
 CLASSIFICATION OF HOTELS
(ix) Downtown/City Hotels
City hotels are used by business travelers and tourists alike.
TARGET Often the tourists require a hotel in the centre of the city,
MARKETS convenient for sightseeing, not necessarily expensive, whereas
the business traveller will also need the convenient location
&LOCATION but may need a hotel with relevant facilities.
 CLASSIFICATION OF HOTELS
(ix) Downtown/City Hotels

TARGET
MARKETS
&LOCATION
 CLASSIFICATION OF HOTELS
(i) World-class Service
These are also called luxury / Five Start hotels, they target top
LEVEL business executives, entertainment celebrities, high-ranking political
figures, and wealthy clientele as their primary markets. They provide

OF upscale restaurants and lounges, Valet, concierge services and also

private dining facilities. 

SERVICE
 CLASSIFICATION OF HOTELS
(ii) Mid-range Service
Hotels offering mid-range or otherwise 3 to 4-star hotels
LEVEL service appeal to the largest segment of the travelling public.
This kind of hotels does not provide elaborate service and
OF have adequate staffing. They also provide uniformed service,
food and beverage room service, in-room entertainment's and
SERVICE also Wi-Fi etc. 
 CLASSIFICATION OF HOTELS
(iii) Budget / Limited Service
These hotels provide clean, comfortable, safe, inexpensive rooms and
LEVEL meet the basic need of guests. Budget hotels appeal primarily to
budget-minded travellers who want a room with minimum services
OF and amenities required for a comfortable stay, without unnecessary
paying additional cost for costly services.  

SERVICE
 CLASSIFICATION OF HOTELS
(i) Independent / Single Owner Hotels
They do not have identifiable ownership or management
OWNERSHIP affiliation with other properties. An example of the same
would be family owned and operated hotel that is not
AND following any corporate policies or procedures. 
AFFILIATION
S
 CLASSIFICATION OF HOTELS
(ii) Chain hotels
Hotels that are part of a hotel chain and these kinds of
OWNERSHIP ownership usually imposes certain minimum standards, rules,
policies and procedures to restrict affiliate activities. In general
AND the more centralized the organization the stronger the control
AFFILIATION over the individual property.

S
 CLASSIFICATION OF HOTELS
(iii) Management contract hotel
These hotels are the properties owned by other entities. Under this
OWNERSHIP type of contract, the owner or developer usually retains the financial
and legal responsibility for the property, the management company
AND pays its expenses and in turn, receives an agreed-upon fee from the
owner or developer and the remaining cash goes to the owner who
AFFILIATION also pays for debts, insurance, taxes.
S
 CLASSIFICATION OF HOTELS
(iv) Franchising and Referral Groups
Franchising is simply a method of distribution whereby one
OWNERSHIP entity that has developed a particular pattern or format for
doing business. The franchiser usually provides a strong brand
AND name, national and international central reservation system,
AFFILIATION management training programs, advanced technology, and
central purchasing services.
S
 CLASSIFICATION OF HOTELS
(iv) Franchising and Referral Groups
Referral groups consist of independent hotels, which have
OWNERSHIP joined together for some common purpose. While each
property in the referral system is the same but there is no
AND similarity in the quality of service and guest expectations.
AFFILIATION Hotels within this group refer their guests to other affiliated
hotels. With this kind of approach, a hotel may gain a much
S greater level of exposure.
CLASSIFICATION OF HOTELS

Historically, hotel classification systems were developed to

ensure safe and reliable lodging and food for travelers at a
BASED time when very few such trustworthy establishments existed.
Many countries allow various classification systems for hotels
ON in accordance to chain name and type of hotel, however, there
is no international classification which has been adopted. As a
STAR rough guide:
CLASSIFICATION OF HOTELS
A 1-Star hotel provides a limited range of amenities and services, but adheres
to a high standard of facility-wide cleanliness.
A 2-Starhotel provides good accommodation and better equipped bedrooms,

BASED each with a telephone and attached private bathroom.

A 3-Star hotel has more spacious rooms and adds high-class decorations and
furnishings and color TV. It also offers one or more bars or lounges.
ON A 4-Star hotel is much more comfortable and larger, and provides excellent
cuisine (table d’hote and a la carte), room service, and other amenities.
STAR A 5-Star hotel offers most luxurious premises, widest range of guest services,
as well as swimming pool and sport and exercise facilities.
CLASSIFICATION OF HOTELS
(i) One-Star Hotels 
Hotels in this classification are likely to be small and independently

BASED owned, with a family atmosphere. Services may be provided by the

owner and family on an informal basis. There may be a limited range
of facilities and meals may be fairly simple. Lunch, for example, may
ON not be served. Some bedrooms may not have an en suite bath/shower
rooms. Maintenance, cleanliness and comfort should, however, always
STAR be of an acceptable standard.
CLASSIFICATION OF HOTELS
(i) One-Star Hotels 

BASED
ON
STAR
CLASSIFICATION OF HOTELS
(ii) Two-Star Hotels 
In this classification hotels will typically be small to medium sized

BASED and offer more extensive facilities than at the one-star level. Some
business hotels come into the two-star classification and guests can
expect comfortable, well equipped, overnight accommodation, usually
ON with an en-suite bath/shower room. Reception and other staff will aim
for a more professional presentation that at the one-star level, and
STAR offer a wider range of straightforward services, including food and
drink.
CLASSIFICATION OF HOTELS
(ii) Two-Star Hotels 

BASED
ON
STAR
CLASSIFICATION OF HOTELS
(iii) Three-Star Hotels 
At this level, hotels are usually of a size to support higher staffing

BASED levels, and a significantly greater quality and range of facilities than at
the lower star classifications. Reception and the other public rooms
will be more spacious and the restaurant will normally also cater to
ON non-residents. All bedrooms will have an en suite bath and shower
rooms and offer a good standard of comfort and equipment, such as a
STAR hair dryer, direct dial telephone and toiletries in the bathroom. Besides
room service, some provisions for business travellers can be expected.
CLASSIFICATION OF HOTELS
(iii) Three-Star Hotels 

BASED
ON
STAR
CLASSIFICATION OF HOTELS
(iv) Four-Star Hotels 
Expectations at this level include a degree of luxury as well as quality

BASED in the furnishings, decor and equipment, in every area of the hotel.
Bedrooms will also usually offer more space than at the lower star
levels, and well designed, coordinated furnishings and decor. The en-
ON suite bathrooms will have both bath and fixed shower. There will be a
high enough ratio of staff to guests to provide services like porterage,
STAR 24-hour room service, laundry and dry-cleaning. The restaurant will
demonstrate a serious approach to its cuisine.
CLASSIFICATION OF HOTELS
(iv) Four-Star Hotels 

BASED
ON
STAR
CLASSIFICATION OF HOTELS
(v) Five-Star Hotels 
Here you should find spacious and luxurious accommodation
throughout the hotel, matching the best international standards.
BASED Interior design should impress with its quality and attention to detail,
comfort and elegance. Furnishings should be immaculate. Services
ON should be formal, well supervised and flawless in attention to guests’
needs, without being intrusive. The restaurant will demonstrate a high
STAR level of technical skill, F&B production to the highest international
standards. Staff will be knowledgeable, helpful, well versed in all
aspects of customer care and combining efficiency with courtesy.
CLASSIFICATION OF HOTELS
(v) Five-Star Hotels 

BASED
ON
STAR
THANK YOU!