Classification Of Hotels

Introduction
• A Hotel is an establishment that provides paid lodging on a short-
term/ long term basis.

• In earlier days Hotels used to provide with the basic accommodation

facilities like the Room with a cupboard, a small table.

• Now it has been changed with the modern facilities available in the
rooms like en-suite washrooms with the room, air conditioners or the
climate control etc.
Hotel Classification
• Star Rating
• Heritage
• Size
• Location
• Clientele
• Duration of Guest Stay
• Level of Services
• Ownership
Standard Classification
• Star classification system widely accepted ratings worldwide.
• Classification of Hotel is done by Central govt. committee called the Hotel
Restaurant Approval and Classification Committee (HRACC).
• Classification committee includes
• Chairman (HRACC)
• FHRAI- Federation of Hotel Restaurant Association of India
• HAI- Hotel Association Of India
• IATO- Indian Association of Tour Operators
• TAAI- Travel Agent Association of India
• IHM- Institute of Hotel Management Catering Technology and Applied Nutrition
• IHHA- Indian Heritage Hotel Association
Star Rating
• One Star Hotel
- Limited range of facilities
- Generally small & Independently owned, with a family atmosphere
• Two Star Hotel
- Small- Medium sized, More comfortable the one star hotel
- At least one fourth of the total room will be air conditioned
• Three Star Hotel
- More spacious, Decorated lobbies, Valet parking etc. are
provided
Star Rating
• Four Star Hotel
- Large, formal hotels, level of luxury increases

• Five Star Hotel

- Highest level of accommodation & services, personal services

• Five Star Deluxe Hotel

- Luxury standards increased, Quality of service at-par
expectations of a guest.
Heritage Hotels
• Heritage hotels are recent addition to our hotel industry.
• Visitors are offered the rooms which have their own history, served
traditional cusines.
Divided in 3
1. Heritage- Covers hotels in residencies, havelis, haunting lodges,
castles or forts places built between 1935 to 1950
2. Heritage Classic- Places built from 1920 to 1935
3. Heritage Grand- Places built prior to 1920
Classification on the basis of Size
• Small Hotels
- 25 rooms or less.
• Medium Hotels
- 26 to 100 rooms
• Large Hotels
- 101 to 300 rooms
• Very Large Hotels
- More than 300 rooms.
Classification on the Basis of Location
• Downtown Hotels:
- Located in the Heart of the city
- Near shopping areas, theatres etc.
- High rate

Taj Mahal Hotel Mumbai

Classification on the Basis of Location
• Sub-urban Hotel:
- Located in the suburbs
- Quieter surroundings
- Moderate Rates

Radisson Blu hotel Gurugram.

Classification on the Basis of Location
• Motels:
- Located on Highways
- Provides ample parking facilities.

Kamat yatri nivas chain, Bangalore

Classification on the Basis of Location
• Airport Hotels:
- Located in the vicinity of airports
- Cater transit guests

Ibis Hotel Gurugram

Classification on the Basis of Location
• Resort Hotels:
- Located near the hill stations, sea, countryside
- May be called health resort, hill resort, beach resort
-Generally seasonal in nature.

Goa Marriott Resort & Spa

Classification on the Basis of Location
• Floatel:
- Established on Luxury liners or ships
Classification on the Basis of Clientele
• Business or Commercial Hotel
• Transient Hotels
• Suite Hotel
• Residential Hotel
• Bed & Breakfast hotel
• Casino Hotel
• Conference centre
• Convention Hotels
Classification on the Basis of Clientele
• Business or Commercial Hotel:
- Situated in the heart of the city.
- Duration of guest stay is small
- Occupancy level is higher during weekdays and low during weekends.
• Transient Hotel:
- these hotels cater to the guest who are travelling needs a stop & again
start of with their journey.
- Usually situated near the seaport, airport etc.
- Occupancy rate is usually very high.
Classification on the Basis of Clientele
• Suite Hotel:
- Highest level of personalised services.
• Residential Hotels:
- These are the hotels which provide accommodation for a longer period
of time.
- Rooms are similar to Suite hotel rooms
• Bed & Breakfast Hotel:
- It is a European concept
- Tariiff is lower than a full-service hotel
- Suitable for budget travellers.
Classification on the Basis of Clientele
• Casino Hotels:
- Provides gambling facilities.
• Conference Centres:
- Caters conference delegations.
- Large hotels are booked .
• Convention hotels:
- A convention, in the sense of a meeting, is a gathering of individuals who
meet at an arranged place and time in order to discuss or engage in some
common interest.
- Have a large convention complex
Classification on the Basis of Duration of
Guest Stay
• Commercial hotels
• Transient hotels
• Semi-residential hotels
• Residential/Apartment Hotels
• Extended stay hotels
Classification on the Basis of Duration of
Guest Stay
• Commercial Hotels:
-Duration of guest stay is small.
• Transient Hotels:
-Mostly occupied by travellers as stopovers.
• Semi-residential hotels:
-Guest usually hires a room for his/her requirement and for a time
period as required.
-Guest has to pay the room rent on daily basis.
-Features of both transient & residential hotels.
Classification on the Basis of Duration of
Guest Stay
• Residential/ Apartment Hotels:
-Provides long term accommodation.
-Rent is usually paid for a month.
-Usually located in hill stations, beaches etc.
• Extended Stay Hotels:
- Apartments are hired by the hotel.
- Room rates are usually determined on the duration/length of
guest stay.
- Offer kitchen amenities in the room.
Classification on the Basis of Level of
Service

Level of Service

Up-market/Luxury Mid-market or Budget hotels or

hotels/ World- mid-range economy/ Limited
class services services services
Classification on the Basis of Level of
Service
• Up-market/Luxury/World-class services hotels:
-Offering world-class services to the guests with personalized services.
- Quality of the services are being provided.
• Mid-market/Mid-range services hotels:
- Offer modest services
- Medium sized hotel with rooms count around 150-300 rooms.
• Budget/Economic hotels:
- Offer the most basic needs of guest
- Also known as economy or limited services.
Classification on the Basis of Ownership
• Proprietary Ownership
• Management Concept
• Franchise
• Time-share
• Condominium
Classification on the Basis of Ownership
• Proprietary Ownership:
- Proprietary ownership is the direct ownership of one or more properties by a
person or company. Small motels are owned and operated by a couple or family
is common examples of proprietary ownership. ... In a co-owner chain,
ownership of individual properties is shared by the hotel company and by
independent investors.
- A chain is a group of hotels that are owned or managed by one company. In
general, three or more units constitute a chain but major hotel chains have
from 300 to 5,000 properties. A proprietary chain is owned entirely by one
company.
Classification on the Basis of Ownership
• Franchise:
- Not all hotels that have the same name belong to a proprietary
chain. A different type of chain a franchise chain comprises properties
they have the same name and design but are owned and operated by
different parties.
- A franchise is a license given by a company or franchiser, to use the
company’s ideas, methods or trademarks in a business. By paying a fee,
a private investor or franchise can obtain a trademark license,
architectural plans, designs, training and operating methods. The
franchisee is responsible for financing the construction of the property.
Classification on the Basis of Ownership
• Management Contract:
- Under a management contract, a property owner contracts with a
hotel management company to operate the establishment. In some
cases a well-known chain may build a new property and retain
ownership, while arranging for a local firm to manage the hotel.
- local investors may fund the construction and development of a
property, while contracting with an experienced chain such as Ramada
or Marriott, to manage the operations. In either case the management
firm receives a share of profits.
Classification on the Basis of Ownership
• Time- share hotels:
- Also known as “Vacation Ownership” or “ Holiday Ownership”
concept.
-These properties are in resorts areas like hill, beaches, forests, etc.
- Time share involves individuals who purchases the ownership of
accommodation for a specific week or weeks.
- The price of the property depends on the week, one trends to buy.
- The guest can choose a peak season, semi peak or a lean season.
Classification on the Basis of Ownership
- The owner pays a fixed price for a certain no. of year say for 20 to 30 years
and has a right to stay at the hotel during that 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.
- e.g.: Mahindra Holidays, Sterling Holiday resorts, Avelon resort, Nanda
tourist corporation etc.
Classification on the Basis of Ownership
• Condominium Hotels:
- These are quite similar to Time share . These unit are developed on joint
ownership basis.
- Each owner purchases and has full right of an unit he/she 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 conditioner, etc.
- In purchasing a condo hotel, you have the flexibility to use your unit
whenever you want.
- Condominium hotels are usually expensive as they even provide facilities
like spa, bars, exercise facilities.
Classification on the Basis of Ownership
- Each owner can occupy or sell his unit independently but is
required to follow some rules and regulations laid by the management.
- The owner informs the management at what time they would like
to occupy the booked rooms. Rest of the time the management can
rent out and the revenue goes to the owner.
- e.g.: The resort and Condominium & Inns group in Singapore.
Alternative Accommodation
• Those type of accommodation that are available outside the formal or organized accommodation
sector.
• Provides basic services to guest at reasonable price.
Different Types of Alternative Accommodation:
1. Sarai/ Dharmashala
2. Dakbungalow/Circuit house/Inspection bungalow/ Forest Lodge
3. Lodge/Boarding house
4. Youth Hostel
5. Yatri Niwas
6. Camping ground/Tourist camp
7. Railway/Airport retiring room
8. Paying guest accommodation
Alternative Accommodation
• Sarai/ Dharmashala: mostly found at pilgrimage place.
- Usually constructed by welfare trust, social organization or even state govt.
- Charges nominal fee.
• Dak bungalow/ Circuit house/ Inspection bungalow/ Forest Lodge:
- A Govt. building in British India under company rule and the Raj.
- These were the rest houses.
- All these properties have an old world style of hospitality as well as cuisine
with low tariff
- Usually owned by state government and located in remote areas.
Alternative Accommodation
• Lodge/ Boarding House:
- Lodge is the modest hotels situated away from the city or in remote
areas.
- Offers standard facility such as clean rooms, F& B services (Bar may
also available)
- Boarding houses provide accommodation & meals at a specific period
of time.
• Youth Hostel:
- Provide low-cost dormitory accommodation with common bathing &
cafeteria facility.
Alternative Accommodation
• Yatri Niwas: is low cost self service accommodation in cities.
- these properties are usually operated by non-commercial or
developmental organizations.
- located at historical, cultural, natural site.
• Camping grounds/ Tourist camps:
- Located within the cities in open places.
- Provide parking spaces along with water, electricity and
washrooms.
Alternative Accommodation
• Railway/ Airport retiring rooms:
- Situated in major railway stations & domestic and international airports.
- Provide resting place to passengers with confirmed current tickets.
- Bookings are made through station superintendent or the airport
manager.
• Paying guest Accommodation:
-PG is a non-institutional accommodation offered by individual
households.
- Nominal charge for accommodation. Food may or may not be provided.