Hotels are classified or categorized based on various parameters like size, location, target market, ownership, facilities, services, etc.
Classification Based on Size:
- Small Hotels – Hotels with less than 100 rooms
- Medium-sized Hotels – Hotels with 100 to 300 rooms
- Large Hotels – Hotels with more than 300 rooms
- Mega Hotels – Hotels with more than 1000 rooms
Classification Based on Location:
- City Center – These hotels are generally located in the heart of the city near shopping malls, business centers, commercial establishments, etc.
- Airport Hotels – They are normally situated near the airports and the air passengers use them for short stays or transit stay.
- Suburban Hotels – This type of hotels are located on the outskirts of the city, away from the hustle and bustle of the city and its traffic. The tariffs are comparatively less and so it is preferred by budget travelers.
- Motels – Motels are kind of hotels that are located on the highways for the benefit of the travelers. These are mostly used for overnight stay or temporary stay by travelers. They may have ample parking space, basic facilities, etc.
- Resorts – Resorts are normally located near beaches, hills, forests, rivers, lakes, etc. These hotels are used for activities like relaxation, recreation, leisure, sports, camping, hiking, etc.
- Floatels or Boatels – Hotels on boats or yachts or ships floating on lakes, rivers or oceans are this type of hotels.
Classification Based on Facilities & Services:
Hotels are classified into star categories based on the facilities and services provided by them.
- One Star – These are small hotels with basic amenities with a clean and neat atmosphere
- Two Star – This type of hotels are slightly bigger, have spacious rooms with facilities like telephones, televisions, etc. They also may have room service and an attached restaurant.
- Three Star – They are more spacious and comfortable hotels with facilities like reception, room service, housekeeping, restaurant, laundry, telephones, television, air-conditioning, lobby, furnishings, carpets, uniformed & trained staff, etc.
- Four Star – In this category of hotels, the hotels are bigger located in prime commercial localities. They have more facilities and services like well furnished & spacious rooms, 24-hr hot & cold modern showers, valet parking, cake shop, coffee shop, swimming pool, fitness centers, florist, etc.
- Five Star – These hotels are large, luxurious, elegant, having beautiful architecture and superior facilities and services. Guest rooms are comfortable with high quality linen, blankets, bath tubs, etc. They usually have restaurants with different cuisines – international & national, pool side bar, coffee shops, boutique, spas, salons, valet parking, personal security, etc.
Classification Based on Clientele / Target Market:
- Budget / Economy Hotels – These hotels provide basic needs for the guests by providing comfortable and clean lodging at affordable prices
- Business Class Hotels – These are equipped to cater to the business travelers. They provide comfort and the ease of engaging in business activities. They usually have business centers, conference halls, office gadgets, high speed internets, etc.
- Boutique Hotels – They are normally small and expensive hotels catering to elite customers. They have personalized or themed or stylized rooms, furniture, curtains, carpets, etc.
- Casino Hotels – Hotels of this type offer customers with facilities like gambling, floor shows, restaurants, bars, etc.
- Apartment Hotels or Service Apartments – They are usually found in residential areas. They offer facilities and services like equipped kitchen, washing machine, dish washer, air-conditioners, refrigerator, furniture, housekeeping, security, etc. They are cheaper and are almost like staying at home. They are normally offered on long term basis.
- Suite Hotels – Suite hotels are designed to give the customers comfortable and personalized services. It contains the living area, a compact kitchenette and bedroom with attached bath. It also offers facilities like microwave oven, refrigerator, safety locker, etc. It specifically caters to clients who are fond of luxury and lavish lifestyle.
- Conference / Business / Convention Centers – Conference or Business or Convention Centers are hotels that are specifically designed for conventions, business meetings, conferences, etc. Facilities like high speed internet, computers, LCD Projectors, LCD screens, public address systems, etc., are available.
Classification Based on Ownership:
- Independent Hotels – They are owned by individuals or groups, but are not connected or contracted to any other hotel or hotel groups in any way. They act and take decisions independently and are totally autonomous.
- Chain of Hotels – A hotel chain is a business enterprise that administers a number of hotels in different locations. This big chain gives them the advantage of efficiently centralizing parameters like – administration, marketing, promotions, reservations, financial strength, expertise, manpower, specialties, merchandiser, etc.
- Management Contract – In this arrangement a group or chain or an individual enters into a contract with a hotel ownership for managing the entire operations of the hotel
- Franchise Hotels – It is an authorization given by a company to a hotel to use its brand name, goodwill, etc., and adhere to certain set of guidelines and rules for carrying out its business. A hotel or hotel group can operate under the franchise of another reputed brand of hotel.
- Time Share Hotels – In this concept many individuals can purchase holiday or vacation membership. They are allotted occupation of the hotel based on individual turns. They are mostly in the form of resorts in hill stations. These hotels contain comfortable accommodation with well furnished kitchenette.
- Condominium – These are units like second homes for the owners, who are individuals. They contain all facilities like air conditioning, refrigerator, furniture, kitchenette, swimming pool, health club, security, etc. The individual owns it and can decide when to stay there and shall inform the management in advance about occupying the property. But the individual should abide by the rules of the management.
The outlined types are major classification widely followed in the hospitality industry. There are many other classifications like – self catering hotels, bread & breakfast hotels, heritage hotels, travel lodge, youth hostels, capsule hotels, farmhouses, rotels, transient hotels, ecotels, etc.